Income Taxes

3 Months Ended

Mar. 31, 2020

The following table presents Income tax (benefit) expense and the effective tax rate:



	Three Months Ended March 31,
	2020			2019
	(Dollars in thousands)
Income tax (benefit) expense	$	(143,303	)	$	27,297
Effective tax rate	(75		)%	14		%

During the three months ended March 31, 2020, the Company remeasured its previously unrecognized income tax benefits relating to the worthless stock deduction taken in 2013. The remeasurement, which resulted in the recognition of a $167.8 million benefit in the quarter, was based on Internal Revenue Service (“IRS”) written confirmation indicating no examination adjustment would be proposed. Notwithstanding this written confirmation, the Company’s U.S. federal income tax returns remain under examination by the IRS for 2010 through 2014. The timing of completion and ultimate outcome of the audits remains uncertain and it is reasonably possible that during the next 12 months, the Company’s unrecognized tax benefits may change further as a result of IRS audits.

The effective tax rate for the three months ended March 31, 2020 was lower than the statutory federal rate of 21% primarily due to the remeasurement of unrecognized tax benefits mentioned above, foreign income taxed at lower rates, and $11.8 million of excess tax benefits related to stock-based compensation, partially offset by state income taxes. The effective tax rate for the three months ended March 31, 2019 was lower than the statutory federal rate of 21% primarily due to tax benefits from foreign income taxed at lower rates and $11.0 million of excess tax benefits related to stock-based compensation, partially offset by state income taxes.