Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s effective tax rates were as follows:

	Second Quarter				First Six Months
(in millions)	2022		2021		2022		2021
Effective tax rate	(2.3)	%	26.9	%	17.9	%	23.5	%

The following is a reconciliation of the provision for income taxes computed at the U.S. federal statutory tax rate to the provision for income taxes reported in the unaudited Condensed Consolidated Statements of Income:

	Second Quarter				First Six Months
(in millions)	2022		2021		2022		2021
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
State income taxes, net	3.2	%	3.7	%	3.5	%	3.7	%
Impact of non-U.S. operations(1)	(1.9)	%	—	%	(0.8)	%	—	%
Tax credits	(3.0)	%	(1.3)	%	(1.6)	%	(1.4)	%
U.S. taxation of foreign earnings	2.7	%	0.8	%	1.6	%	1.3	%
Deferred rate change(2)	(24.5)	%	0.9	%	(5.8)	%	0.4	%
Uncertain tax positions	0.2	%	—	%	—	%	0.2	%
Excess tax deductions on stock-based compensation(3)	(0.1)	%	—	%	(0.1)	%	(2.7)	%
Other	0.1	%	1.8	%	0.1	%	1.0	%
Total provision for income taxes	(2.3)	%	26.9	%	17.9	%	23.5	%

(1)For the second quarter and first six months of 2022, primarily driven by the Company’s incremental income in low tax jurisdictions.

(2)For the second quarter and first six months of 2022, primarily driven by the revaluation of state deferred tax liabilities due to state legislative changes.

(3)For the first six months of 2022, primarily driven by the unfavorable comparison to the excess tax deductions that were generated from the vesting of RSUs during the first six months of 2021.