INCOME TAXES

A reconciliation of the U.S. federal statutory rate to our effective tax rate is as follows:



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2017		2016		2017		2016
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%	35.0	%
State income taxes	1.9	%	1.7	%	1.8	%	1.8	%
Excess tax benefits from stock-based compensation plans	—	%	—	%	-0.5	%	—	%
Other	0.2	%	0.4	%	0.2	%	0.3	%
Effective tax rate	37.1	%	37.1	%	36.5	%	37.1	%

The differences between the U.S. federal statutory rate and our effective tax rate are primarily due to state income taxes and excess tax benefits from stock-based compensation plans. The decrease in the effective tax rate for the nine months ended September 30, 2017 is primarily due to the adoption of ASU 2016-09 on January 1, 2017, which changed where we recognize excess tax benefits and deficiencies from stock-based compensation plans in our consolidated financial statements on a prospective basis. We receive a tax deduction upon the vesting of restricted stock and the conversion of restricted stock units to common stock based on the fair value of the shares. The amount that this tax deduction differs from the grant-date fair value that was recognized as stock-based compensation expense is referred to as an excess tax benefit or deficiency. For the nine months ended September 30, 2017, excess tax benefits of $2.5 million were recognized in provision for income taxes, thus reducing our effective tax rate. For the nine months ended September 30, 2016, excess tax benefits of $27.2 million were recognized in paid-in capital in our consolidated balance sheets, which had no impact on our effective tax rate.