Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The following table presents details of the benefit of income taxes and our effective tax rates (in thousands, except percentages):

	Three Months Ended March 31,
	2020			2019
Benefit of income taxes	$	(16,397	)	$	(10,473	)
Effective tax rate	(51.4		)%	(229.7		)%

We account for income taxes according to ASC 740, which, among other things, requires that we estimate our annual effective income tax rate for the full year and apply it to pre-tax income (loss) for each interim period, taking into account year-to-date amounts and projected results for the full year. We account for the tax effects of discrete events in the interim period they occur. The provision for income taxes consists of federal, foreign, state, and local income taxes. Our effective tax rate differs from the statutory U.S. income tax rate due to the effect of state and local income taxes, differing tax rates imposed on income earned in foreign jurisdictions and in the United States, losses in foreign jurisdictions, certain nondeductible expenses, excess tax deductions, and the changes in valuation allowances against our deferred tax assets. Our effective tax rate could change significantly from quarter to quarter because of recurring and nonrecurring factors. The benefit of income taxes for the three months ended March 31, 2020 and 2019 was primarily attributable to discrete tax benefits of $11.1 million and $9.5 million, respectively, related to excess tax deductions from settled stock options and RSUs.

We had a deferred tax asset of $10.8 million and a deferred tax liability of $5.6 million as of March 31, 2020 and December 31, 2019, respectively, included in other assets and other liabilities, respectively, in our condensed consolidated balance sheets.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, or the CARES Act, was signed into law. The CARES Act includes tax provisions applicable to businesses such as net operating losses, enhanced interest deductibility, optional deferral of deposits of payroll taxes and refundable employee retention payroll tax credit. We have determined that these provisions did not have an impact to our condensed consolidated financial statements for the three months ended March 31, 2020.

Neither we nor any of our subsidiaries are currently under examination from tax authorities in the jurisdictions in which we do business.