Income taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Net (Loss) Income Before Tax

Net income (loss) before tax is summarized below ($ in thousands):


	Year Ended December 31,
	2022		2021		2020
Domestic	$	1,896	$	1,517	$	1,053
Foreign	49,257		(98,602)		(274,396)
Net income (loss) before tax	$	51,153	$	(97,085)	$	(273,343)

Components of Income Tax Benefit (Provision)

The components of our income tax benefit for the years ended December 31, 2022, 2021 and 2020 were as follows ($ in thousands):


	Year Ended December 31,
	2022		2021		2020
Current
Domestic	$	—	$	—	$	431
Foreign	(1,243)		(2,706)		(892)
Total current income tax provision	(1,243)		(2,706)		(461)
Deferred
Domestic	5,333		—		(7,684)
Foreign	1,463		10,109		19,118
Total deferred income tax benefit	6,796		10,109		11,434
Income tax benefit	$	5,553	$	7,403	$	10,973

Reconciliation of Netherlands Statutory Federal Income Tax Rate to Our Effective Income Tax Rate

A reconciliation of the Netherlands statutory income tax rate to our effective income tax rate from continuing operations is as follows ($ in thousands):


	Year Ended December 31,
	2022				2021				2020
Income tax (provision) benefit at statutory rate	$	(13,197)	25.8	%	$	24,272	25.0	%	$	68,336	25.0	%
Differences between statutory rate and foreign rates	31,490		(61.6)	%	16,741		17.2	%	(598)		(0.2)	%
Inflation adjustments	10,106		(19.8)	%	7,312		7.5	%	4,366		1.6	%
Nondeductible interest and expenses	(5,202)		10.2	%	(12,969)		(13.4)	%	(19,893)		(7.3)	%
Goodwill impairment	—		—	%	—		—	%	(4,900)		(1.8)	%
Foreign exchange rate differences	(3,570)		7.0	%	(7,950)		(8.2)	%	(4,194)		(1.5)	%
Dominican Republic tax classification	—		—	%	—		—	%	7,949		2.9	%
Dutch and U.S. tax rate change	—		—	%	2,753		2.8	%	10,545		3.9	%
Basis difference in fixed assets	—		—	%	—		—	%	(3,026)		(1.1)	%
Change in valuation allowance	(13,941)		27.3	%	(20,820)		(21.4)	%	(48,213)		(17.6)	%
Other	(133)		0.3	%	(1,936)		(2.0)	%	601		0.1	%
Income tax benefit	$	5,553	(10.8)	%	$	7,403	7.5	%	$	10,973	4.0	%

Schedule of Deferred Tax Assets and Liabilities

The tax effect of each type of temporary difference and carry-forward that gives rise to a significant portion of our deferred tax assets and liabilities as of December 31, 2022 and 2021 were as follows ($ in thousands):


	As of December 31,
	2022		2021
Deferred tax assets
Advance customer deposits	$	2,263	$	2,242
Trade payables and other accruals	11,022		9,441
Labor liability accrual	1,190		895
Lease obligation	981		584
Interest expense	48,995		31,895
Other assets	3,106		—
Net operating losses	143,959		143,098
Total deferred tax asset	211,516		188,155
Valuation allowance	(177,817)		(160,104)
Net deferred tax asset	33,699		28,051

Deferred tax liabilities
Accounts receivable and prepayments to vendors	582		164
Property and equipment	93,449		93,503
Other liabilities	1,572		3,282
Total deferred tax liability	95,603		96,949
Net deferred tax liability	$	(61,904)	$	(68,898)

Schedule of Change in Valuation Allowance

The change in the valuation allowance established against our deferred tax assets for the years ended December 31, 2022, 2021 and 2020 is summarized in the following table ($ in thousands):


	Balance at January 1		Additions		Deductions		Balance at December 31
December 31, 2022	$	(160,104)	$	(29,728)	$	12,015	$	(177,817)
December 31, 2021	$	(123,967)	$	(41,450)	$	5,313	$	(160,104)
December 31, 2020	$	(79,788)	$	(45,833)	$	1,654	$	(123,967)