Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Our provision for income taxes as a percentage of pretax earnings is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items.

During the three and nine months ended September 30, 2021, our effective tax rate was 26.1% and 23.5%, respectively. The rate for the nine months ended September 30, 2021 was favorably impacted by recognition of a windfall tax benefit from the vesting of share-based compensation. During the three and nine months ended September 30, 2020, our effective tax rate was 25.8% and 26.2%, respectively. The rate for the nine months ended September 30, 2020 was unfavorably impacted by recognition of a shortfall tax expense from the vesting of share-based compensation.