Gains on integrated hedging instruments

[Table of Contents](#i3d0ebbc4e2a2420f98ed7e6fe698936a_7) HASBRO, INC. AND SUBSIDIARIESNotes to Consolidated Financial Statements — (Continued)  
A reconciliation of the statutory United States federal income tax rate to Hasbro’s effective income tax rate is as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020 |  | 2019 |
| Statutory income tax rate | 21.0  | % |  | 21.0  | % |  | 21.0  | % |
| State and local income taxes, net | 1.5  |  |  | 2.2  |  |  | 0.5  |  |
| Tax on international earnings | (1.1) |  |  | (3.5) |  |  | (2.7) |  |
| Domestic tax on foreign earnings | (1.7) |  |  | (2.7) |  |  | (1.9) |  |
| Change in unrecognized tax benefits | (3.4) |  |  | 4.1  |  |  | 0.6  |  |
| Change in valuation allowance | (1.6) |  |  | 4.5  |  |  | —  |  |
| Share-based compensation | (0.6) |  |  | (0.4) |  |  | (0.8) |  |
|  |  |  |  |  |  |
| Research and development tax credits | (1.1) |  |  | (1.6) |  |  | (0.7) |  |
| Deferred tax rate change | 6.5  |  |  | 3.6  |  |  | —  |  |
| Gains on integrated hedging instruments | —  |  |  | —  |  |  | (4.0) |  |
| Officers' compensation | 1.9  |  |  | 1.4  |  |  | —  |  |
| Loss on disposition of business | 3.9  |  |  | —  |  |  | —  |  |
| Other, net | (0.1) |  |  | 1.4  |  |  | 0.4  |  |
|  | 25.2  | % |  | 30.0  | % |  | 12.4  | % |

Certain reclassifications have been made to prior year presentation to conform to current year presentation.105
