XML 49 R35.htm IDEA: XBRL DOCUMENT v3.20.4

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of (Loss) Income Before Income Taxes

U.S. and international components of (loss) income before income taxes (in thousands) were comprised of the following for the periods indicated:

		Years Ended December 31,
		2020				2019				2018
U.S.		$	(53,250	)		$	9,944			$	(18,295	)
Foreign			33,297				28,319				38,777
Total		$	(19,953	)		$	38,263			$	20,482

Schedule of (Benefit from) Provision for Income Taxes

The (benefit from) provision for income taxes (in thousands) consisted of the following for the periods indicated:

		Years Ended December 31,
		2020				2019				2018
Current:
Federal		$	1,861			$	1,256			$	(1,916	)
State			1,445				143				1,656
Foreign			5,221				5,135				6,460
		$	8,527			$	6,534			$	6,200
Deferred:
Federal		$	(15,038	)		$	(749	)		$	(6,071	)
State			(6,269	)			(480	)			(2,047	)
Foreign			351				(1,397	)			(101	)
		$	(20,956	)		$	(2,626	)		$	(8,219	)
Total (benefit) provision		$	(12,429	)		$	3,908			$	(2,019	)

Schedule of Effective Income Tax Rate Reconciliation

The benefit from or provision for income taxes differs from the amount computed by applying the federal statutory income tax rate to the Company’s loss or income before income taxes as follows for the periods indicated:

		Years Ended December 31,
		2020				2019				2018
Income tax expense at federal statutory rate			21.0	%			21.0	%			21.0	%
State taxes, net of federal tax effect			18.0	%			(1.7	)%			(1.3	)%
Foreign earnings taxed at different rates			21.7	%			(6.1	)%			(20.5	)%
Book tax difference in amortization of intangible property			0.0	%			(4.6	)%			0.0	%
Withholding tax			(12.5	)%			3.1	%			5.5	%
Foreign tax credit			3.8	%			(3.0	)%			(5.2	)%
Other international components			(3.5	)%			0.2	%			0.3	%
Change in valuation allowance			2.7	%			1.6	%			2.5	%
Deferred tax adjustments and rate changes			(3.4	)%			1.0	%			(1.7	)%
Meals and entertainment			(1.3	)%			1.3	%			2.6	%
Non-deductible officers compensation			(12.5	)%			1.4	%			2.1	%
Subpart F income			(2.0	)%			3.2	%			7.0	%
Research and development tax credit			19.9	%			(9.3	)%			(11.8	)%
Stock compensation			11.8	%			1.8	%			5.8	%
GILTI, net of foreign tax credit			(1.1	)%			0.9	%			0.5	%
FDII			3.1	%			(1.9	)%			(4.5	)%
Transition Tax			0.0	%			0.0	%			(15.2	)%
Other permanent differences			(3.4	)%			1.3	%			3.0	%
Total			62.3	%			10.2	%			(9.9	)%

Schedule of Effective Tax Rate for (Loss) Income Before Income Taxes

The Company’s U.S. and foreign effective tax rates for (loss) income before income taxes were as follows for the periods indicated:

		Years Ended December 31,
		2020				2019				2018
U.S.			33.8	%			1.7	%			45.8	%
Foreign			16.7	%			13.2	%			16.4	%
Combined			62.3	%			10.2	%			(9.9	)%

Schedule of Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows for the periods indicated:

		December 31,
		2020				2019
Deferred tax assets, net:
Net operating loss carryforwards		$	1,690			$	874
Tax credits			4,158				2,553
Intangible assets			1,707				1,878
Deferred revenue adjustment			408				423
Accrued compensation			6,527				6,257
Share-based compensation expense			11,410				14,182
Deferred rent			0				1,330
Digital asset impairment losses			19,843				0
Other			3,605				1,453
Deferred tax assets before valuation allowance			49,348				28,950
Valuation allowance			(1,259	)			(2,130	)
Deferred tax assets, net of valuation allowance			48,089				26,820
Deferred tax liabilities:
Prepaid expenses and other			1,792				1,693
Property and equipment			4,233				5,092
Debt discount, net of issuance costs			41,693				0
Deferred tax on undistributed foreign earnings			1,741				0
Method change			338				652
Total deferred tax liabilities			49,797				7,437
Total net deferred tax (liability) asset		$	(1,708	)		$	19,383
Reported as:
Non-current deferred tax assets, net			6,503				19,409
Non-current deferred tax liabilities			(8,211	)			(26	)
Total net deferred tax (liability) asset		$	(1,708	)		$	19,383

Schedule of Change In Unrecognized Tax Benefits

The change in unrecognized income tax benefits (in thousands) is presented in the table below:

Unrecognized income tax benefits at January 1, 2020		$	1,563
Increase related to positions taken in prior period			2,580
Increase related to positions taken in current period			283
Decrease related to expiration of statute of limitations			(133	)
Unrecognized income tax benefits at December 31, 2020			4,293
Accrued interest			295
Unrecognized income tax benefits recorded in other long-term liabilities at December 31, 2020		$	4,588

X

- Definition

Schedule Of Effective Rate For Income Tax

+ References

No definition available.

+ Details

Name:	mstr_ScheduleOfEffectiveRateForIncomeTaxTableTextBlock
Namespace Prefix:	mstr_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h)(1)(i))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319

+ Details

Name:	us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration