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Income Taxes
3 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

Note 9—Income Taxes

In determining the interim provision for (benefit from) income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date income (loss) and adds the tax effects of any discrete items in the reporting period in which they occur.

 

For the three months ended March 31, 2017, the Company’s annual estimated effective tax rate differed from the U.S. federal statutory income rate of 35% primarily due to state taxes, foreign taxes, nondeductible stock-based compensation and the discrete impact of tax benefits associated with stock-based awards. For the three months ended March 31, 2016, the Company’s annual estimated effective tax rate differed from the U.S. federal statutory income rate of 35% primarily due to state taxes, foreign taxes and changes in the fair value of preferred stock warrant liabilities.

For the three months ended March 31, 2017, the benefit from income taxes included approximately $5.3 million of discrete benefits associated with disqualifying dispositions of incentive stock options.

There were no material changes to the Company’s unrecognized tax benefits in the three months ended March 31, 2017, and the Company does not expect to have any significant changes to unrecognized tax benefits through the end of the fiscal year.