Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Our provision for income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, we update our estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, we make a cumulative adjustment in such period.

In the three months ended March 31, 2020 and 2019, we recorded income tax expenses of $0.8 million and $0.1 million, respectively. We continue to maintain a full valuation allowance on our U.S. Federal and state net deferred tax assets. The tax expense for the three months ended March 31, 2020 and 2019 was primarily due to foreign and state income tax expense.

On March 27, 2020, the “Coronavirus Aid, Relief and Economic Security (CARES) Act” was signed into law (the "CARES Act"). The CARES Act includes provisions relating to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. 

We intend to utilize the provision to defer payment of certain payroll taxes beginning in the second quarter of 2020. Any deferred payments will be accrued for as a liability and included in our condensed consolidated balance sheet for the applicable period.

We are continuing to evaluate the other provisions of the CARES Act, but do not expect them to have a material impact on our consolidated financial statements.