Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

7. Income Taxes

For the three months ended June 30, 2022 and 2021, we recorded $99.1 million and $67.4 million of income tax expense and had an effective tax rate of 24.7% and 24.5%, respectively. The increase in our effective tax rate for the three months ended June 30, 2022 compared to the same period in 2021 was primarily due to higher nondeductible employee remuneration paid to covered employees.

For the six months ended June 30, 2022 and 2021, we recorded $185.3 and $120.5 million of income tax expense and had an effective tax rate of 25.0% and 24.4%, respectively. The increase in our effective tax rate for the six months ended June 30, 2022 compared to the same period in 2021 was primarily due to higher nondeductible employee remuneration paid to covered employees and lower net favorable state tax law changes.

Our current effective tax rate may differ from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes. During the six months ended June 30, 2022 and 2021, cash paid for taxes, net of refunds received, was $144.2 million and $100.4 million, respectively. The increase in cash tax payments between the periods is primarily due to higher 2022 forecasted taxable income.

During the three and six months ended June 30, 2022, there were no significant changes to our uncertain tax positions. For more information, see Note 8, Income Taxes, of the Notes to Consolidated Financial Statements in “Part II, Item 8. Financial Statements and Supplementary Data” of our 2021 Annual Report on Form 10-K.