Income Tax Provision

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Tax Provision

Income Tax Provision

We had an effective income tax rate of 13.8% and 7.7% for the three and nine months ended September 30, 2021, respectively, compared to 21.3% and negative 11.1% for the three and nine months ended September 30, 2020, respectively. The decrease in the effective tax rate for the three months ended September 30, 2021, as compared to the same period in 2020, was principally driven by the increase in the excess tax benefits related to stock incentive awards. The increase in the effective tax rate for the nine months ended September 30, 2021, as compared to the same period in 2020, was principally driven by the decrease in the excess tax benefits related to stock incentive awards.

The effective income tax rates for the periods presented were different from the statutory United States federal income tax rate of 21% primarily due to excess tax benefits related to stock incentive awards, the tax benefit of research tax credits and the release of reserves for unrecognized income tax benefits resulting from expiration of the statutes of limitations for certain tax years, offset by state income taxes and non-deductible business expenses. The excess tax benefits related to stock incentive awards realized were $6.3 million and $21.5 million for the three and nine months ended September 30, 2021, respectively, as compared to $2.5 million and $48.0 million for the three and nine months ended September 30, 2020, respectively. Excluding the excess tax benefits, the effective tax rate was 26.1% and 26.3% for the three and nine months ended September 30, 2021, respectively, compared to 26.2% and 26.7% for the three and nine months ended September 30, 2020, respectively.

We made tax payments of $1.7 million and $2.6 million in the nine months ended September 30, 2021, and 2020, respectively.