Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.19.1
Income Taxes
3 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
We make estimates and judgments in determining our provision for income taxes for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities that arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes.
Our provision for income taxes in interim periods is based on our estimated annual effective tax rate. We record cumulative adjustments in the quarter in which a change in the estimated annual effective rate is determined. The estimated annual effective tax rate calculation does not include the effect of discrete events that may occur during the year. The effect of these events, if any, is recorded in the quarter in which the event occurs.
Our effective income tax rate was 29.2% and (2.8)% for the three months ended March 31, 2019 and 2018, respectively. Our effective rate is higher than the statutory rate for the three months ended March 31, 2019, primarily because of the effect of the base erosion and anti-abuse tax (“the BEAT tax”), state taxes and certain non-deductible expenses, offset, in part, by $1.7 million of excess tax benefits from stock-based compensation recognized as discrete items as required by ASU 2016-09.
Our effective rate is lower than the statutory rate for the three months ended March 31, 2018, primarily because of $4.2 million of excess tax benefits from stock-based compensation recognized as discrete items, as required by ASU 2016-09.