Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Effective Tax Rates

Our quarterly provision for income taxes is measured using an annual effective tax rate, adjusted for discrete items within the period presented.

Our effective tax rates are as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Effective Tax Rate	18.4%	20.9%	19.6%	21.6%

Our effective tax rates attributable to continuing operations for the three and six months ended June 30, 2021 are lower than the prior year’s comparable periods primarily due to higher tax credit utilization, partially offset by the reversal of tax accruals in the prior year related to an audit settlement.

Our effective tax rates attributable to continuing operations for the three and six months ended June 30, 2021 are lower than the statutory U.S. federal tax rate of 21% primarily due to excess share-based compensation benefits, partially offset by state taxes.

Unrecognized Tax Benefits

During the three and six months ended June 30, 2021, our gross unrecognized tax benefits, excluding interest and penalties, increased by $0.5 million and $0.4 million, respectively, primarily due to increases in tax positions taken in the current and prior periods, partially offset by reductions from expiration of statutes of limitations. During the three and six months ended June 30, 2021, the total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate increased by $0.6 million and $0.6 million, respectively. The difference between these amounts relates to (1) offsetting tax effects from other tax jurisdictions, and (2) interest expense, net of deferred taxes.

During the three and six months ended June 30, 2021, we recognized $0.2 million of interest and penalty expense related to unrecognized tax benefits in our Condensed Consolidated Statement of Operations. As of June 30, 2021 and December 31, 2020, the total amount of accrued interest and penalty expense related to unrecognized tax benefits recorded in our Condensed Consolidated Balance Sheets was $7.8 million and $7.5 million, respectively.

During the next twelve months, it is reasonably possible that our unrecognized tax benefits may decrease by $10.1 million due to expiration of statutes of limitations and settlements with tax authorities. However, if the ultimate resolution of income tax examinations results in amounts that differ from this estimate, we will record additional income tax expense or benefit in the period in which such matters are effectively settled.