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Income Taxes
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate. The Company also records the tax effect of unusual or infrequently occurring discrete items.
The provision for income taxes is shown in the tables below:
 Three Months Ended September 30
 20212020
Income tax expense$1,913 $14,049 
 Nine Months Ended September 30
 20212020
Income tax expense$4,654 $10,641 
Income tax expense decreased $12.1 million to $1.9 million in the third quarter of 2021 as compared to $14.0 million in the third quarter of 2020. The decrease was primarily due to decreases in pre-tax net operating income and effective tax rate. The effective tax rate decrease resulted from an increase of $7.5 million in refunds of 2017 excess deferred income taxes partially offset by a reduction in state tax benefits from repairs deductions.
Income tax expense decreased $5.9 million to $4.7 million in the first nine months of 2021 as compared to $10.6 million in the first nine months of 2020. The decrease was due to a decrease in the effective tax rate from an increase of $7.5 million in refunds of 2017 excess federal deferred income taxes partially offset by a reduction in state tax benefits from repairs deductions.
The Company’s effective tax rate was 4.3% before discrete items as of September 30, 2021 and 11.6% as of September 30, 2020. The decrease in effective tax rate was primary due to an increase in refunds of 2017 excess deferred income taxes partially offset by a reduction in state tax benefits from repairs deductions.
The Company had unrecognized tax benefits of approximately $14.9 million and $12.9 million as of September 30, 2021 and 2020, respectively. Included in the balance of unrecognized tax benefits as of September 30, 2021 and 2020, is $3.9 million and $3.5 million, respectively, of tax benefits that, if recognized, would result in an adjustment to the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly within the next 12 months.