Income Taxes

9 Months Ended

Sep. 30, 2021

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 September 30,				Nine months ended September 30,
	2021		2020		2021		2020
U.S. federal statutory tax rate	21.0	%	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	—		0.2		(0.2)		0.1
Non-U.S. income taxed at different rates	0.8		(0.2)		0.3		—
Increase (reduction) in tax benefit related to stock-based awards	(0.3)		0.1		1.2		—
Non-deductible expenses	5.8		(0.1)		1.1		—
Research and development credit	—		—		—		0.1
Increase in valuation allowance	(27.3)		(20.8)		(23.6)		(17.9)
Effect of tax rate differences of NOL carryback	—		—		—		1.7
Effective income tax rate	—	%	0.2	%	(0.2)	%	5.0	%

Fluctuations in effective tax rates have historically been impacted by permanent tax differences with no associated income tax impact, 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.

Deferred income taxes reflect the tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the value reported for income tax purposes, at the enacted tax rates expected to be in effect when the differences reverse. GAAP 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.