|3 Months Ended|
Mar. 31, 2020
|Income Tax Disclosure [Abstract]|
The following table includes the Company’s loss before income tax benefit, income tax benefit and effective tax rate:
For the three months ended March 31, 2020, the Company's effective tax rate differed from the statutory rate primarily due to increases in the valuation allowance the Company had placed on a portion of its US deferred tax assets, the windfall from stock-based compensation and the CARES Act net operating loss (“NOL”) carryback. For the three months ended March 31, 2019, the Company's effective tax rate differed from the statutory rate primarily due to the impact of the Base Erosion and Anti-Abuse Tax (“BEAT”) and increases in the valuation allowance the Company had placed on all US deferred tax assets with the exception of indefinite-lived intangibles.
The Company's total gross liability for unrecognized tax benefits, exclusive of interest and penalties, was $19,370 and $18,939 at March 31, 2020 and December 31, 2019, respectively. Of this amount, a portion of the unrecognized tax benefits was recorded as a reduction of deferred tax assets instead of a non-current liability. The portion of the unrecognized tax benefits, exclusive of interest and penalties, recorded as a non-current liability was $6,433 and $6,504 at March 31, 2020 and December 31, 2019, respectively.
At March 31, 2020, the amount of unrecognized tax benefits, including interest and penalties, that would benefit the Company's effective tax rate, if recognized, was $13,355. At this time, the Company estimates that the liability for unrecognized tax benefits could decrease in the next twelve months as it is anticipated that reviews by tax authorities will be completed.
The Company recognizes potential interest and penalties related to unrecognized tax benefits in income tax expense. These amounts were not material for the three months ended March 31, 2020 and 2019. The Company had accrued interest and penalties of $7,274 and $7,336 as of March 31, 2020 and December 31, 2019, respectively.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef