Income Taxes

9 Months Ended

Sep. 30, 2022

Income Taxes

Income Taxes

(9)Income Taxes

Our effective tax rate was 18.0% and 25.5% for the three months ended September 30, 2022 and 2021, respectively, and 11.6% and 20.4% for the nine months ended September 30, 2022 and 2021, respectively.

A reconciliation of the federal statutory income rate to our effective income tax rate for each period presented is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	4.9		4.3		4.8		4.3
Non-deductible executive compensation	2.3		1.4		1.3		1.5
Acquisition of remaining Optimal Blue interests(1)	—		—		(9.3)		—
Redeemable noncontrolling interests	0.4		2.5		0.2		1.8
Tax credits	(13.3)		(5.2)		(7.6)		(5.3)
Restricted share vesting	(0.5)		—		(0.4)		(4.5)
Other	3.2		1.5		1.6		1.6
Effective tax rate	18.0	%	25.5	%	11.6	%	20.4	%

(1) Includes the effect of a discrete income tax benefit related to the establishment of a deferred tax asset as a result of our first quarter 2022 reorganization of certain wholly owned subsidiaries within the Optimal Blue partnership investment structure.