Taxes on Income

6 Months Ended

Jun. 30, 2022

Taxes on Income

Taxes on Income

16. Taxes on Income

The company’s effective tax rate was negative 0.6 percent and 27.7 percent for the three and six months ended June 30, 2022, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three and six months ended June 30, 2022, was reduced by 24.8 and increased by 12.1 percentage points for the establishment of a valuation allowance related to the Russian beverage packaging business, increased by 6.2 and reduced by 3.0 percentage points for a reduction in the valuation allowance related to the Indian beverage packaging business, and reduced by 3.0 and 1.9 percentage points for equity compensation.

The company’s effective tax rate was 37.8 percent and 27.4 percent for the three and six months ended June 30, 2021, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three and six months ended June 30, 2021, was reduced by 3.8 and 3.2 percentage points, respectively, for federal tax credits, reduced by 0.8 and 2.6 percentage points, respectively, for foreign rate differences net of foreign withholding tax, and increased by 18.4 and 10.5 percentage points, respectively, for the U.K.’s enacted tax rate change.