Income Taxes	9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes In the third quarter of 2020, we completed an intra-entity transfer of certain intellectual property rights back to the U.S. in order to better align their ownership with how our business operates. The transaction did not result in additional income tax expense or benefit. However, as a result of the transaction, we recognized a deferred tax asset of $26.1 million, which was equally offset by a valuation allowance. On June 7, 2019, the U.S. Court of Appeals for the Ninth Circuit (“Ninth Circuit”) issued an opinion in Altera Corp v. Commissioner (the “Altera matter”), reversing a prior 2015 U.S. Tax Court decision. Specifically, the Ninth Circuit ruled in favor of the Commissioner, validating U.S. Treasury regulations that require parties to a qualified cost-sharing arrangement to include stock-based compensation in the cost pool. On June 22, 2020, the U.S. Supreme Court denied hearing a petition to review the Ninth Circuit’s ruling. The Company is not a named party in the Altera matter, but as a result of the ruling, Zynga’s prior tax position of not including stock-based compensation expenses in its cost share with its affiliates was revised. This resulted in the recognition of a one-time current federal and state tax expense totaling $9.4 million, which was recognized as a provision for income taxes during the nine months ended September 30, 2020, as the Company revised its position in the second quarter of 2020. The full tax liability associated with the Altera matter was partially offset by the use of deferred tax credit carryforward assets, which equally reduced the Company’s valuation allowance against its deferred tax assets. During the three months ended September 30, 2020, the benefit from income taxes was $8.8 million and during the three months ended September 30, 2019, the provision for income taxes was $9.9 million, resulting in a net change of $18.7 million. The current period benefit from income taxes was primarily driven by the post-acquisition statutory operating losses of Peak, partially offset by incremental tax expense from post-acquisition statutory operating profits of Small Giant and Gram Games. Further, the provision for income taxes in the prior period included a net increase in income tax as a result of the Building Sale and an increase in expense related to the Base Erosion and Anti-Abuse Tax (“BEAT”) of the 2017 Tax Act. During the nine months ended September 30, 2020, the provision from income taxes was $17.9 million and during the nine months ended September 30, 2019, the benefit from income taxes was $3.2 million, resulting in a net change of $21.1 million. The current period provision for income taxes was primarily driven by the post-acquisition statutory operating profits of Small Giant and Gram Games, as well as income tax expense related to the Altera matter, which more than offset the benefit in the prior period post-acquisition statutory operating losses for Small Giant and Gram Games, current period benefit from the post-acquisition statutory operating losses of Peak, prior period income tax that resulted from the Building Sale and prior period income tax related BEAT.

Income Taxes

9 Months Ended

Sep. 30, 2020

9. Income Taxes

In the third quarter of 2020, we completed an intra-entity transfer of certain intellectual property rights back to the U.S. in order to better align their ownership with how our business operates. The transaction did not result in additional income tax expense or benefit. However, as a result of the transaction, we recognized a deferred tax asset of $26.1 million, which was equally offset by a valuation allowance.

On June 7, 2019, the U.S. Court of Appeals for the Ninth Circuit (“Ninth Circuit”) issued an opinion in Altera Corp v. Commissioner (the “Altera matter”), reversing a prior 2015 U.S. Tax Court decision. Specifically, the Ninth Circuit ruled in favor of the Commissioner, validating U.S. Treasury regulations that require parties to a qualified cost-sharing arrangement to include stock-based compensation in the cost pool. On June 22, 2020, the U.S. Supreme Court denied hearing a petition to review the Ninth Circuit’s ruling. The Company is not a named party in the Altera matter, but as a result of the ruling, Zynga’s prior tax position of not including stock-based compensation expenses in its cost share with its affiliates was revised. This resulted in the recognition of a one-time current federal and state tax expense totaling $9.4 million, which was recognized as a provision for income taxes during the nine months ended September 30, 2020, as the Company revised its position in the second quarter of 2020. The full tax liability associated with the Altera matter was partially offset by the use of deferred tax credit carryforward assets, which equally reduced the Company’s valuation allowance against its deferred tax assets.

During the three months ended September 30, 2020, the benefit from income taxes was $8.8 million and during the three months ended September 30, 2019, the provision for income taxes was $9.9 million, resulting in a net change of $18.7 million. The current period benefit from income taxes was primarily driven by the post-acquisition statutory operating losses of Peak, partially offset by incremental tax expense from post-acquisition statutory operating profits of Small Giant and Gram Games. Further, the provision for income taxes in the prior period included a net increase in income tax as a result of the Building Sale and an increase in expense related to the Base Erosion and Anti-Abuse Tax (“BEAT”) of the 2017 Tax Act.

During the nine months ended September 30, 2020, the provision from income taxes was $17.9 million and during the nine months ended September 30, 2019, the benefit from income taxes was $3.2 million, resulting in a net change of $21.1 million. The current period provision for income taxes was primarily driven by the post-acquisition statutory operating profits of Small Giant and Gram Games, as well as income tax expense related to the Altera matter, which more than offset the benefit in the prior period post-acquisition statutory operating losses for Small Giant and Gram Games, current period benefit from the post-acquisition statutory operating losses of Peak, prior period income tax that resulted from the Building Sale and prior period income tax related BEAT.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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