Taxes on Income

9 Months Ended

Sep. 30, 2024

Taxes on Income

Taxes on Income

16. Taxes on Income

The company’s effective tax rate was 18.5 percent and 22.3 percent for the three and nine months ended September 30, 2024, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three and nine months ended September 30, 2024, increased by 0.7 and 0.8 percentage points, respectively, for Pillar Two Global Minimum Taxes, increased by 0.2 and 1.0 percentage points, respectively, for non-U.S. rate differences and withholding taxes net of credits and decreased by 2.8 and 0.5 percentage points, respectively, for state and local taxes.

The company’s effective tax rate was 25.7 percent and 22.3 percent for the three and nine months ended September 30, 2023, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three and nine months ended September 30, 2023, increased by 3.3 and 0.6 percentage points, respectively, for items related to share-based compensation, increased by 1.3 and 0.9 percentage points, respectively, for Global Intangible Low-Taxed Income, increased by 1.0 and 0.8 percentage points, respectively, for state and local taxes, increased by 0.9 and 0.7 percentage points, respectively, for other U.S. permanent differences and decreased by 2.9 and 1.8 percentage points, respectively, for non-U.S. rate differences and withholding taxes net of credits.