Income Taxes

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

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

	For the Three Months Ended  June 30,				For the Six Months Ended  June 30,
	2020		2019		2020		2019
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
State income taxes	3.2	%	2.6	%	6.7	%	2.9	%
Excess tax benefits from stock-based compensation plans	—	%	—	%	-17.6	%	-1.9	%
Other	0.4	%	—	%	5.8	%	—	%
Effective income tax rate	24.6	%	23.6	%	15.9	%	22.0	%

State income taxes

State income taxes include non-deductible expenses related to uncertain tax positions. The impact of these non-deductible expenses on our effective income tax rate increased in magnitude from 2019 to 2020 primarily due to a decrease in pre-tax income.

Excess tax benefits from stock-based compensation plans

During the first quarter of each year, we receive a tax benefit 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 by which this tax benefit exceeds the grant-date fair value that was recognized as stock-based compensation expense is referred to as an excess tax benefit. Excess tax benefits are recognized in provision for income taxes and reduce our effective income tax rate. The impact of excess tax benefits on our effective income tax rate increased in magnitude from 2019 to 2020  primarily due to a decrease in pre-tax income, partially offset by a decrease in the number of restricted stock units that were converted to common stock due to the timing of long-term stock award grants.

Other

Other items impacting our effective income tax rate primarily consist of non-deductible executive compensation expenses. The impact of other items on our effective income tax rate increased in magnitude from 2019 to 2020 primarily due to a decrease in pre-tax income.