Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

	Three Months Ended September 30,							Nine Months Ended September 30,
thousands except percentages	2021		2020			$ Change		2021			2020			$ Change
Income tax expense (benefit)	$	6,049	$	44,147		$	(38,098)	$	(16,706)		$	3,203		$	(19,909)
Income (loss) before income taxes	8,166		208,149			(199,983)		(79,131)			8,020			(87,151)
Effective tax rate	NM		21.2		%	NM		21.1		%	39.9		%	(18.8)		%

NM—Not Meaningful

The Company’s tax provision for interim periods is determined using an estimate of its annual current and deferred effective tax rates, adjusted for discrete items. The Company’s effective tax rate is typically impacted by non-deductible executive compensation and other permanent differences as well as state income taxes, which cause the Company’s effective tax rate to deviate from the federal statutory rate. For the three and nine months ended September 30, 2021, the effective rate was also impacted by the release of a valuation allowance on the Company’s capital loss carryover. For the three and nine months ended September 30, 2020, the effective rate was also impacted by the gain on the deconsolidation of 110 North Wacker (refer to Note 2 - Real Estate and Other Affiliates for additional details), a tax expense related to the recapture of federal and state historic preservation credits due to the sale of HHC’s interest in Mr. C Seaport (refer to Note 3 - Dispositions for additional details) and a valuation allowance on the Company’s carryover for charitable contributions.