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Income Taxes
3 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company’s effective tax rate for the three months ended March 31, 2017 was 25.2%. The effective tax rate for the three months ended March 31, 2017 was lower than the U.S. federal statutory income tax rate primarily due to (i) income earned in various international tax jurisdictions that apply lower income tax rates, (ii) research tax credits, and (iii) discrete tax adjustments related to excess tax benefits on share-based compensation payments.

The Company’s effective tax rate for the three months ended March 31, 2016 was 28.7%. The effective tax rate for the three months ended March 31, 2016 was lower than the U.S. federal statutory income tax rate primarily due to (i) income or losses generated in jurisdictions where the income tax expense or benefit was offset by a corresponding change in the valuation allowance on net deferred tax assets, (ii) income earned in various international tax jurisdictions that apply lower income tax rates, and (iii) discrete tax adjustments related to the release of valuation allowances and unrecognized tax benefits.
The Company's gross unrecognized tax benefits, exclusive of associated interest and penalties, were $15.7 million as of March 31, 2017 and December 31, 2016, respectively, all of which would impact the Company's effective income tax rate if recognized. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as part of the provision for income tax expense. As of March 31, 2017 and December 31, 2016, accrued interest and accrued penalties totaled $0.1 million, respectively.
Effective January 1, 2017, the Company adopted new guidance under ASU No. 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory. For additional discussion of the new guidance, see Note 1 - Basis of Presentation and Changes in Significant Accounting Policies to the accompanying unaudited condensed consolidated financial statements.