Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

7. Income Taxes

For the three months ended September 30, 2022 and 2021, we recorded $84.9 million and $83.2 million of income tax expense and had an effective tax rate of 24.4% and 24.9%, respectively. The decrease in our effective tax rate for the three months ended September 30, 2022 compared to the same period in 2021 was primarily due to favorable employee restricted stock and performance unit vests with higher excess tax benefits and favorable state tax law changes, partially offset by higher nondeductible employee remuneration paid to covered employees.

For the nine months ended September 30, 2022 and 2021, we recorded $270.1 and $203.7 million of income tax expense and had an effective tax rate of 24.8% and 24.6%, respectively. The increase in our effective tax rate for the nine months ended September 30, 2022 compared to the same period in 2021 was primarily due to higher nondeductible employee remuneration paid to covered employees, partially offset by favorable employee restricted stock and performance unit vests with higher excess tax benefits.

Our current effective tax rate is higher than the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes. During the nine months ended September 30, 2022 and 2021, cash paid for taxes, net of refunds received, was $221.6 million and $168.1 million, respectively. The increase in cash tax payments between the periods is primarily due to higher 2022 forecasted taxable income.

During the three and nine months ended September 30, 2022, there were no significant changes to our uncertain tax positions. For more information, see Note 8, Income Taxes, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of our 2021 Annual Report on Form 10-K.