Goodwill impairment

[Table of Contents](#ica158fb683c247fdb170955b492f9216_7)HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIESNotes to Consolidated Financial Statements (Continued)The differences between the U.S. federal statutory income tax rate and the Company's effective tax rate were as follows:

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|   | For the fiscal years ended October 31, |
|   | 2021 |  | 2020(1) |  | 2019 |
| U.S. federal statutory income tax rate | 21.0  | % |  | 21.0  | % |  | 21.0  | % |
| State income taxes, net of federal tax benefit | 0.7  | % |  | 0.9  | % |  | (0.1) | % |
| Lower rates in other jurisdictions, net | (7.6) | % |  | (2.3) | % |  | (7.3) | % |
| Valuation allowance | (10.0) | % |  | 20.8  | % |  | 5.8  | % |
| U.S. permanent differences | 3.6  | % |  | (3.4) | % |  | 6.0  | % |
| U.S. R&D credit | (1.3) | % |  | 8.4  | % |  | (2.3) | % |
| Uncertain tax positions | (0.9) | % |  | 7.6  | % |  | (14.3) | % |
| Goodwill impairment | —  | % |  | (41.2) | % |  | —  | % |
| Tax law changes  | (1.1) | % |  | 15.5  | % |  | 24.5  | % |
| Other, net | 0.1  | % |  | (0.2) | % |  | (0.8) | % |
|  | 4.5  | % |  | 27.1  | % |  | 32.5  | % |



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(1)Positive numbers represent tax benefits and negative numbers represent tax expense as the Company recorded income tax benefit on a pretax loss.The jurisdictions with favorable tax rates that had the most significant impact on the Company's effective tax rate in the periods presented include Puerto Rico and Singapore.In fiscal 2021, the Company recorded $294 million of net income tax benefits related to items discrete to the year. These amounts primarily included $180 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges, $157 million of income tax benefits related to releases of foreign valuation allowances, $39 million of income tax benefits related to tax rate changes on deferred taxes, and $32 million of income tax benefits related to the change in pre-Separation tax liabilities, primarily those for which the Company shares joint and several liability with HP Inc. and for which the Company is indemnified by HP Inc. These benefits were partially offset by $337 million of net income tax charges associated with income from the Itanium litigation judgment, against which $244 million of income tax attributes previously subject to a valuation allowance were utilized, resulting in a net tax expense of $93 million.In fiscal 2020, the Company recorded $362 million of net income tax benefits related to items discrete to the year. These amounts primarily included $174 million of income tax benefits related to transformation costs, and acquisition, disposition and other related charges, $66 million of income tax benefits related to the change in pre-Separation tax liabilities, primarily those for which the Company shared joint and several liability with HP Inc. and for which the Company is indemnified by HP Inc., $57 million of income tax benefits related to Indian distribution tax rate changes, and $40 million of income tax benefits related to tax rate changes on deferred taxes. In fiscal 2019, the Company recorded $152 million of net income tax charges related to items discrete to the year. These amounts primarily included $488 million of net income tax charges related to changes in U.S. federal and state valuation allowances primarily as a result of impacts of the Tax Act and $40 million of income tax charges related to future withholding costs on potential intercompany distributions of earnings, the effects of which were partially offset by $274 million of income tax benefits related to the change in pre-Separation tax liabilities for which the Company shared joint and several liability with HP Inc., and $104 million of income tax benefits on transformation costs, and acquisition, disposition and other related charges.As a result of certain employment actions and capital investments the Company has undertaken, income from manufacturing and services in certain countries is subject to reduced tax rates through 2037. The gross foreign income tax benefits attributable to these actions and investments were $889 million ($0.67 diluted net EPS) in fiscal 2021, $521 million ($0.40 diluted net EPS) in fiscal 2020, and $837 million ($0.61 diluted net EPS) in fiscal 2019. Refer to Note 16, "Net Earnings Per Share" for details on shares used to compute diluted net EPS.96
