Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 12—Income Taxes

The effective tax rate was 29.1% and 28.8% for the three months ended June 30, 2022 and 2021, respectively, and 27.9% and 27.4% for the six months ended June 30, 2022 and 2021, respectively. The change in the effective tax rate for the three and six months ended June 30, 2022 compared to the respective prior year periods was primarily due a decrease in recognition of windfall tax benefits from stock awards in the current year, an increase in valuation allowances on deferred tax assets in the current year and a proportionate change in the composition of income before income taxes from foreign and domestic tax jurisdictions. In addition, the effective tax rate for the three and six months ended June 30, 2021 included tax expense related to a law change in the United Kingdom.

During the six months ended June 30, 2022, we recorded a net deferred tax liability of $118.9 million related primarily to acquired intangible assets in the allocation of the purchase price for the acquisitions of Blue Prism and Hubwise, which will not be deductible for tax purposes and is partially offset by net operating loss carryforwards.