Income Taxes

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES 

Our effective income tax rate was 20.8% for the three months ended September 30, 2023, as compared to 22.7% for the three months ended September 30, 2022, and 20.8% for the nine months ended September 30, 2023, as compared to 21.6% for the nine months ended September 30, 2022. The decrease in our effective tax rate for the three months ended September 30, 2023, as compared to the same period in the prior year, was primarily driven by an increase in the tax rate benefits related to share-based compensation and, to a lesser extent, research and development tax credits and geographical income mix. The decrease in our effective tax rate for the nine months ended September 30, 2023, as compared to the same period in the prior year, was primarily driven by geographical income mix and, to a lesser extent, tax rate benefits related to share-based compensation.

The effective tax rate for the three and nine months ended September 30, 2023 differed from the U.S. federal statutory tax rate of 21% primarily due to U.S. state income taxes, net of federal benefit, partially offset by tax benefits from share-based compensation.