XML 25 R14.htm IDEA: XBRL DOCUMENT v3.21.2
Income Taxes
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8—Income Taxes

In determining the interim income tax provision for the nine months ended September 30, 2021, the Company utilized the annual estimated effective tax rate applied to the actual year-to-date income and added the tax effects of any discrete items in the reporting period in which they occur. In determining the interim benefit from income taxes for the nine months ended September 30, 2020, the Company utilized the discrete effective tax rate method, as allowed by Accounting Standards Codification (“ASC”) 740-270-30-18, “Income Taxes – Interim Reporting”.

For the three months ended September 30, 2021 and 2020, the income tax provision included benefits associated with stock-based awards in the amounts of $21.9 million and $25.6 million, respectively. For the nine months ended September 30, 2021 and 2020, the provision for (benefit from) income taxes included benefits associated with stock-based awards in the amounts of $58.2 million and $98.7 million, respectively.

For the nine months ended September 30, 2021, and 2020, the Company’s effective tax rate differed from the United States federal statutory tax rate of 21% primarily due to the impact of tax benefits associated with stock-based awards, nondeductible stock-based compensation, state and foreign taxes, and research and development tax credits.

On June 10, 2021, the UK Finance Act 2021 was enacted, increasing the corporate tax rate from 19% to 25%. Accordingly, the Company increased its net UK deferred tax assets by $76.4 million, which was fully offset by a valuation allowance.

There were no material changes to the Company’s unrecognized tax benefits during the nine months ended September 30, 2021, and the Company does not expect to have any significant changes to unrecognized tax benefits through the end of the fiscal year.