Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense was $59 million for the three months ended September 30, 2019, compared to $55 million for the same period of the prior year. The effective tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 22.7% and 22.9% for the three months ended September 30, 2019 and 2018, respectively, and differed from the US federal statutory rate of 21.0% primarily due to state income taxes partially offset by excess tax benefits on equity-based compensation.

Income tax expense was $163 million for the nine months ended September 30, 2019, compared to $150 million for the same period of the prior year. The effective tax rate was 22.8% and 23.7% for the nine months ended September 30, 2019

and 2018, respectively, and differed from the US federal statutory rate of 21.0% primarily due to state income taxes partially offset by excess tax benefits on equity-based compensation.