Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense for the three months ended September 30, 2019 and September 30, 2018 was $124.0 million and $106.5 million, representing an effective tax rate of 24.4% and 22.1%, respectively. For the three months ended September 30, 2019, the provision for income taxes included a $6.0 million increase in the U.S. taxes payable on the income of the Corporation’s non-U.S. branches, and increased income before income taxes. For the three months ended September 30, 2018, the provision for income taxes included a $5.5 million one-time income tax benefit associated with the re-establishment of a deferred tax asset based on the issuance of guidance by the IRS.

Income tax expense for the nine months ended September 30, 2019 and September 30, 2018 was $346.6 million and $325.4 million, representing an effective tax rate of 23.6% and 22.1%, respectively. For the nine months ended September 30, 2019, the provision for income taxes included an $18.5 million increase in the U.S. taxes payable on the income of the Corporation’s non-U.S. branches, partially offset by income tax benefits as a result of certain international organizational restructuring. For the nine months ended September 30, 2018, the provision for income taxes included a $22.6 million benefit resulting from a change in accounting method regarding the timing of tax deductions for software development-related expenses, partially offset by a $10.3 million net provision representing adjustments to the initial estimated impact of the Tax Cuts and Jobs Act enacted in the fourth quarter of 2017.