Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

6. Income Taxes

For the three months ended June 30, 2023 and 2022, we recorded $65.1 million and $99.1 million of income tax expense and had an effective tax rate of 24.3% and 24.7%, respectively. The decrease in our effective tax rate for the three months ended June 30, 2023 compared to the same period in 2022 was primarily due to favorable employee restricted stock and performance unit vests with higher excess tax benefits and higher net favorable state tax law changes partially offset by higher nondeductible employee remuneration paid to covered employees.

For the six months ended June 30, 2023 and 2022, we recorded $128.3 million and $185.3 million of income tax expense and had an effective tax rate of 24.6% and 25.0%, respectively. The decrease in our effective tax rate for the six months ended June 30, 2023 compared to the same period in 2022 was primarily due to favorable employee restricted stock and performance unit vests with higher excess tax benefits and higher net favorable state tax law changes partially offset by higher nondeductible employee remuneration paid to covered employees.

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 six months ended June 30, 2023 and 2022, cash paid for taxes, net of refunds received, was $90.1 million and $144.2 million, respectively. The decrease in cash tax payments between the periods is primarily due to lower 2023 forecasted taxable income.

During the three and six months ended June 30, 2023, 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 2022 Annual Report on Form 10-K.