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Income Taxes | 3 Months Ended
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Mar. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes A reconciliation of the U.S. federal statutory tax rate to the Company’s effective income tax rate is as follows:
| Three months ended March 31,
| 2020 |  | 2019
U.S. federal statutory tax rate | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit | (0.1 | ) |  | 0.5 |
Non-U.S. income taxed at different rates | 0.1 |  |  | 1.3 |
Reduction in tax benefit related to stock-based awards | (0.2 | ) |  | (2.3 | )
Non-deductible expenses | (0.1 | ) |  | (0.6 | )
Research and development credit (expense) | 0.1 |  |  | 0.8 |
Increase in valuation allowance | (15.0 | ) |  | (18.5 | )
Effect of tax rate differences of NOL carryback | 3.0 |  |  | — |
Other | — |  |  | (0.2 | )
Effective income tax rate | 8.8 | % |  | 2.0 | %
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in response to the COVID-19 pandemic. Among other things, the CARES Act provided the ability for taxpayers to carryback a net operating loss (“NOL”) arising in a taxable year beginning after December 31, 2017 and before January 1, 2021 to each of the five years preceding the year of the loss. Based on the Company’s analysis of the extended NOL carryback provision, it recorded a tax receivable of $6.1 million and filed Form 1139 for a tentative refund of the same amount in April 2020. The refund reflects $4.0 million related to the carrying back of 2018 NOLs to 2013 and $2.1 million in tax benefit relating to the difference in the current U.S. federal tax rate of 21% and the tax rate of 35% applicable in 2013. Fluctuations in effective tax rates have historically been impacted by permanent tax differences with no associated income tax impact, changes in the valuation allowance, changes in state apportionment factors, including the effect on state deferred tax assets and liabilities, and non-U.S. income taxed at different rates, except for the NOL carryback claim discussed above. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted rates and laws that will be in effect when the differences are expected to reverse. ASC 740, Income Taxes, provides for the recognition of deferred tax assets if realization of such assets is more likely than not. In assessing the need for a valuation allowance, the Company considers all available objective and verifiable evidence, both positive and negative, including historical levels of pre-tax income (loss) both on a consolidated basis and tax reporting entity basis, legislative developments, and expectations and risks associated with estimates of future pre-tax income. As of December 31, 2019, the Company determined that it was more likely than not that it would not realize the benefits of certain deferred tax assets and, therefore, it recorded a $19.9 million valuation allowance against the carrying value of net deferred tax assets, except for deferred tax liabilities related to certain state jurisdictions. As a result of the NOL carryback allowed by the CARES Act, the Company released a valuation allowance of $4.0 million related to its deferred tax assets attributable to its U.S. federal NOLs. The Company continues to have a full valuation allowance against net deferred tax liabilities as it is not more-likely-than-not they will be utilized.

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- 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 Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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