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Income Taxes
 9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

6.

Income Taxes

 

For the three months ended September 30, 2020 and 2019, we recorded $46.6 million and $59.5 million of income tax expense and had an effective tax rate of 25.0% and 24.9%, respectively. The slight increase in our effective tax rate for the three months ended September 30, 2020 compared with the same period in 2019 was primarily due to the release of an uncertain tax position during the three months ended September 30, 2019 with no corresponding release during the three months ended September 30, 2020.

 

For the nine months ended September 30, 2020 and 2019, we recorded $129.9 million and $184.4 million of income tax expense and had an effective tax rate of 27.8% and 24.8%, respectively. The increase in our effective tax rate for the nine months ended September 30, 2020 compared with the same period in 2019 was primarily due to the nondeductible goodwill impairment charge associated with our Paper reporting unit as well as a decrease in our foreign derived intangible income deduction slightly offset by the favorable impact of employee restricted stock and performance unit vests with higher excess tax benefits (ASU 2016-09).

Our 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 and the nondeductible goodwill impairment recorded in the second quarter of 2020. During the nine months ended September 30, 2020 and 2019, cash paid for taxes, net of refunds received, was $65.0 million and $138.2 million, respectively. The decrease in cash tax payments between the periods is primarily due to lower 2020 taxable income.

During the three and nine months ended September 30, 2020, 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 2019 Annual Report on Form 10-K.