Income Taxes

3 Months Ended

Mar. 31, 2021

The following table presents Income tax expense (benefit) and the effective tax rate:


	Three Months Ended March 31,
	2021			2020
	(Dollars in thousands)
Income tax expense (benefit)	$	37,963		$	(143,303)
Effective tax rate	20		%	(75)		%

The effective tax rate for the three months ended March 31, 2021 was lower than the statutory federal rate of 21% primarily due to a lower effective tax rate on foreign income, partially offset by state income taxes. The effective tax rate for the three months ended March 31, 2020 was lower than the statutory federal rate of 21% primarily due to the remeasurement of unrecognized tax benefits discussed below, a lower effective tax rate on foreign income, and $11.8 million of excess tax benefits related to stock-based compensation, partially offset by state income taxes.

During the three months ended March 31, 2020, the Company remeasured its previously unrecognized income tax benefits relating to the worthless stock deduction taken in 2013. The remeasurement, which resulted in the recognition of a $167.8 million benefit in the quarter, was based on Internal Revenue Service (“IRS”) written confirmation indicating no examination adjustment would be proposed. Notwithstanding this written confirmation, the Company’s U.S. federal income tax returns remain under examination by the IRS for 2010 through 2014.

- Definition

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.

+ References + Details