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Income Taxes
9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our effective tax rate for the three and nine months ended September 30, 2020 was 11% and 18%, respectively. Our effective tax rate for the three and nine months ended September 30, 2019 was 5% and 9%, respectively. The difference between our effective tax rate and the U.S. federal statutory rate of 21% in the above periods was primarily the result of foreign income taxed at different rates and discrete tax adjustments, and for the nine months ended September 30, 2020, tax expense related to the intra-group transfer of intellectual property. During the three months ended September 30, 2020, we settled income tax audits in France and Germany. Neither of these settlements had a significant impact on our condensed consolidated statements of income.

In June 2019, the U.S. Court of Appeals for the Ninth Circuit reversed a lower court decision in Altera Corp. v. Commissioner and held that a Treasury Regulation requiring stock-based compensation to be included in a qualified intercompany cost sharing arrangement was valid. In June 2020, the U.S. Supreme Court denied Altera's petition for certiorari. We have reviewed this decision and determined that no adjustment to PayPal’s condensed consolidated financial statements is required as a result of this development.