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Income taxes
9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income taxes Income taxesThe Company recorded income tax expense of $2.6 million and income tax benefit of $(0.1) million for the three months ended September 30, 2021 and 2020, respectively. The Company’s effective tax rate was 126.3% and 8.1% for the three months ended September 30, 2021 and 2020, respectively. The increase in effective tax rate for the three months ended September 30, 2021, as compared to the same periods in 2020 was attributable mainly to Section 162 (m) compensation deduction limitations partially offset by stock-based compensation excess tax benefit. The Company recorded income tax expense of $4.7 million and income tax benefit of $(3.6) million for the nine months ended September 30, 2021 and 2020, respectively. The Company’s effective tax rate was 829.8% and 31.3% for the nine months ended September 30, 2021 and 2020, respectively. The increase in effective tax rate for the nine months ended September 30, 2021, as compared to the same periods in 2020 was attributable mainly to Section 162 (m) compensation deduction limitations partially offset by stock-based compensation excess tax benefit. Additionally, the United Kingdom’s (“UK”) recently enacted Finance Act 2021 has increased its corporate tax rate to 25% for companies with profits exceeding 250,000 pounds, effective beginning April 1, 2023. As a result of this change in tax law, the Company remeasured its UK deferred taxes which resulted in a $0.5 million discrete tax expense in the nine months ended September 30, 2021. For the three and nine months ended September 30, 2021, the Company used a discrete effective tax rate method to calculate income taxes due to sensitivity of the forecast. Through June 30, 2021, the Company determined that small changes in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate causing material distortion in the year-to-date tax provision. As of September 30, 2021, the Company is unable to produce a reliable estimate of ordinary income for the quarter and year ending 2021 due to the inability to reliably or accurately forecast fourth quarter 2021 operating expenses. Similarly, for the three and nine months ended September 30, 2020, due to uncertainties created by the COVID-19 pandemic, the Company’s estimated annual effective tax rate method would not provide a reliable estimate and therefore was not used.