Income taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income taxes

11. Income taxes

The Company’s tax provision for the interim period is calculated using an estimated annual effective tax rate based on the expected full-year results which is applied to ordinary year-to-date income or loss. The tax provision is adjusted for discrete items that occur in the applicable interim period to arrive at the effective income tax rate.

The summary of the income tax expense from operations was:

	Three months ended		Nine months ended
	September 30		September 30
in $ millions	2024	2023	2024	2023
Total tax expense	531	416	942	781
Effective income tax rate	28%	24%	25%	24%

The increase in the effective tax rate for this quarter in comparison to the three months ended September 30, 2023 is mainly driven by the timing of discrete items occurring throughout the year, including non-deductible acquisition-related costs in the third quarter. The increase in the year-to-date compared to the nine months ended September 30, 2023 is mainly driven by a change in the mix of income earned in jurisdictions with a higher rate of tax and non-deductible acquisition-related costs which is partially offset by items arising in the first quarter (being the movement in tax provisions, a tax deduction for share-based compensation and the largely tax-exempt divestiture of phases one and two of the European Lime operations).