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Income Taxes
3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s effective income tax rate was 21.7% for the three months ended March 31, 2021 and 16.4% for the three months ended March 31, 2020. The effective income tax rate for the 2021 period was higher than the 21% federal statutory rate primarily due to state income taxes (net of the federal tax benefit) and nondeductible expenses, partially offset by earnings attributable to noncontrolling interests for which income taxes are not the responsibility of the Company.
For the three months ended March 31, 2020, the effective income tax rate was lower than the 21% federal statutory rate primarily due to the favorable tax rate differential realized on the 2019 net operating loss (“NOL) carryback and also to earnings attributable to noncontrolling interests for which income taxes are not the responsibility of the Company. Under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act), enacted on March 27, 2020, the NOL generated in 2019 may be carried back up to five years, whereas under previous rules NOLs were only allowed to be carried forward. This allowed the Company to realize the benefit of the tax rate differential by carrying back the NOL to tax years when the federal statutory tax rate was 35% rather than the current rate of 21%, consequently generating a larger tax benefit from the NOL than that recognized prior to the enactment of the CARES Act. The favorable tax rate impact resulting from the CARES Act was partially offset by the unfavorable impact of restricted stock unit vesting, for which a portion of the share-based compensation expense was not deductible for income tax purposes, as well as state income taxes (net of the federal tax benefit).