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Income Taxes
3 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8—Income Taxes

In determining the interim provision for income taxes, the Company has utilized the discrete effective tax rate method, as allowed by Accounting Standards Codification (“ASC”) 740-270-30-18, “Income Taxes – Interim Reporting”. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year to date period as if it were the annual period and determines the income tax expense or benefit on that basis. Based on forecasted level of profitability, the Company is unable to forecast the annual effective tax rate.

For the three months ended March 31, 2020 and 2019, the provision for income taxes included $24.3 million and $11.0 million, respectively, of benefits associated with stock-based awards.  

For the three months ended March 31, 2020, and 2019, the Company’s effective tax rate differed from the United States federal statutory tax rate of 21% primarily due to tax benefits associated with employee exercises of stock options and vesting of restricted stock units, foreign tax rate differences, state taxes, and research and development tax credits.

There were no material changes to the Company’s unrecognized tax benefits during the three months ended March 31, 2020, and the Company does not expect to have any significant changes to unrecognized tax benefits through the end of the fiscal year.