Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The income tax provision for interim periods is determined using an estimated annual effective tax rate adjusted for discrete items, if any, which are taken into account in the quarterly period in which they occur. We review and update our estimated annual effective tax rate each quarter. We recorded an income tax provision of $5.2 million for the three months ended March 31, 2020, based on our estimated annual effective tax rate. We recognized an income tax benefit of $2.1 million for the three months ended March 31, 2019, primarily due to a discrete benefit recorded for equity compensation deductions.

At March 31, 2020 and December 31, 2019, we had deferred tax assets, net of deferred tax liabilities and valuation allowance, of $8.5 million and $12.6 million, respectively.

We recognize interest and penalties related to unrecognized tax benefits within the (provision for)/benefit from income taxes line in the consolidated statements of operations. During the three months ended March 31, 2020, we recognized an immaterial amount of interest expense in the consolidated statements of operations associated with our unrecognized tax benefits.

At March 31, 2020 and December 31, 2019, we had net reserves of $33.9 million and $34.8 million, respectively, for unrecognized tax benefits, which are recorded as a component of other long-term liabilities within our consolidated balance sheets.