Interest and penalties accrued

[Table of Contents](#i77b271276a234b51923cb690f1158463_7)  
Accelerated Share Repurchase Agreements (“ASRs”)  
During the nine months ended September 30, 2022 and 2021, we entered into ASRs providing for the repurchase of our common stock based on the volume-weighted average price during the term of the agreement, less an agreed upon discount. The following table summarizes the information regarding repurchases of our common stock under ASRs:  


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| Agreement Date |  | Repurchase Program |  | Amount Paid (in millions) |  | CompletionDate |  | Total SharesReceived |  | Average Price per Share |
| Q2 2021 |  | May 2018 |  | $ | 100.0  |  |  | Q3 2021 |  | 171,322  |  |  | $ | 583.70  |  |
| Q2 2021 |  | May 2021 |  | $ | 100.0  |  |  | Q3 2021 |  | 161,707  |  |  | $ | 618.40  |  |
| Q3 2021 |  | May 2021 |  | $ | 75.0  |  |  | Q3 2021 |  | 109,239  |  |  | $ | 686.91  |  |
| Q2 2022 |  | May 2021 |  | $ | 200.0  |  |  | Q2 2022 |  | 756,502  |  |  | $ | 264.37  |  |

  
Subsequent to the third quarter, on October 28, 2022, we entered into an ASR to repurchase $200.0 million of our common stock. We paid $200.0 million and received an initial delivery of approximately 0.8 million shares based on current market prices. The final number of shares to be repurchased will be based on our volume-weighted average stock price under the terms of the ASR, less an agreed upon discount.  
Open Market Common Stock Repurchases  
During the nine months ended September 30, 2022, we repurchased on the open market approximately 0.1 million shares of our common stock at an average price of $522.61 per share, including commissions and fees, for an aggregate purchase price of $75.0 million.  
Note 10. Accounting for Income Taxes   
Our provision for income taxes was $49.9 million and $81.0 million for the three months ended September 30, 2022 and 2021, respectively, representing effective tax rates of 40.7% and 30.9%, respectively. Our provision for income taxes was $163.9 million and $211.4 million for the nine months ended September 30, 2022 and 2021, respectively, representing effective tax rates of 33.9% and 26.7%, respectively. Our effective tax rate differs from the statutory federal income tax rate of 21% for the three and nine months ended September 30, 2022 and 2021 primarily due to the recognition of additional tax expense resulting from foreign income taxed at different rates, state income taxes, and non-deductible expenses in the U.S., partially offset by the recognition of excess tax benefits related to stock-based compensation. Additionally, a change in U.S. tax laws effective January 1, 2022 which requires capitalization and amortization of research and development expenses incurred after December 31, 2021 has increased our effective tax rate for the three and nine months ended September 30, 2022.  
We exercise significant judgment in regards to estimates of future market growth, forecasted earnings and projected taxable income in determining the provision for income taxes and for purposes of assessing our ability to utilize any future benefit from deferred tax assets. We continue to assess the realizability of the deferred tax assets as we take into account new information.  
We file U.S. federal, U.S. state, and non-U.S. income tax returns. Our major tax jurisdictions include U.S. federal, the State of California and Switzerland. For U.S. federal and state tax returns, we are no longer subject to tax examinations for years before 2017. Our Israeli subsidiary is under tax audit for years 2016 through 2019. During the fourth quarter of 2021, the Israel Tax Authority issued a tax assessment in connection with a 2016 transaction to which our Israeli subsidiary was a party. We filed an administrative appeal challenging the assessment during the first quarter of 2022 and, by doing so, proceeded to the next administrative stage of the audit. We will continue to vigorously defend our Israeli subsidiary’s tax return position. Based on our assessment of the information currently available, we have not derecognized or remeasured our tax positions with respect to this matter during the nine months ended September 30, 2022. With few exceptions, we are no longer subject to examination by foreign tax authorities for years before 2015.   
Our total gross unrecognized tax benefits, excluding interest and penalties, were $134.2 million and $63.3 million as of September 30, 2022 and December 31, 2021, respectively, a material amount of which would impact our effective tax rate if recognized. The increase in our unrecognized tax benefits relates primarily to positions taken on income tax return calculations finalized during the three months ended September 30, 2022. We have elected to recognize interest and penalties related to unrecognized tax benefits as a component of income taxes. Total interest and penalties accrued as of September 30, 2022 was $5.5 million. While we defend income tax audits in various jurisdictions and the results of such audits may differ materially from the amounts accrued for each year, we cannot currently ascertain the bases on which any given audit will be ultimately 21
