Taxes on Income

6 Months Ended

Jun. 30, 2024

Taxes on Income

Taxes on Income

16. Taxes on Income

The company’s effective tax rate was 24.5 percent and 25.2 percent for the three and six months ended June 30, 2024, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three and six months ended June 30, 2024, increased by 1.7 and 1.2 percentage points, respectively, for state and local taxes, increased by 1.1 and 1.5 percentage points, respectively, for non-U.S. rate differences and withholding taxes net of credits and increased by 0.7 and 0.8 percentage points, respectively, related to Pillar Two Global Minimum Taxes.

The company’s effective tax rate was 19.2 percent and 20.3 percent for the three and six months ended June 30, 2023, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three and six months ended June 30, 2023 increased by 0.6 percentage points for state and local taxes, decreased by 1.9 and 1.1 percentage points, respectively, for non-U.S. rate differences and withholding taxes net of credits and decreased by 0.8 and 0.9 percentage points, respectively, for the effects of share-based compensation.