The Company’s income before expense (benefit) for income taxes by jurisdiction for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands):


	For the Years Ended December 31,
	2022			2021		2020
Ireland	$	1,081,966		$	177,063	$	94,527
United States		(129,482	)		35,711		(13,716	)
Other foreign		(425,548	)		250,053		320,834
Income before expense (benefit) for income taxes	$	526,936		$	462,827	$	401,645

The components of the expense (benefit) for income taxes were as follows for the years ended December 31, 2022, 2021 and 2020 (in thousands):


	For the Years Ended December 31,
	2022			2021			2020
Current expense (benefit) provision
Ireland	$	27,926		$	(5,368	)	$	14,413
U.S. – Federal and State		18,195			44,382			18,418
Other foreign		(96,694	)		(12,976	)		(4,321	)
Total current expense (benefit) provision		(50,573	)		26,038			28,510
Deferred benefit provision
Ireland		106,804			22,801			(15,844	)
U.S. – Federal and State		(50,354	)		(120,532	)		(824	)
Other foreign		(423	)		29			7
Total deferred expense (benefit) provision		56,027			(97,702	)		(16,661	)
Total expense (benefit) for income taxes	$	5,454		$	(71,664	)	$	11,849

Total expense for income taxes was $5.5 million and $11.8 million for the years ended December 31, 2022 and 2020, respectively, and total benefit for income taxes was $71.7 million for the year ended December 31, 2021. The current tax benefit of $50.6 million for the year ended December 31, 2022 was primarily attributable to a tax benefit of $98.6 million related to deferred charges for taxes on higher intercompany inventory transfers, partially offset by an Irish corporation tax liability of $27.9 million and U.S. federal and state tax liabilities of $18.2 million arising on taxable income generated during the year ended December 31, 2022. The deferred tax expense of $56.0 million for the year ended December 31, 2022, was primarily attributable to a tax expense of $104.2 million recognized on the reversal of temporary differences between the book values and tax bases of certain intellectual property assets at the Irish statutory income tax rate, partially offset by a tax benefit of $50.4 million recognized in respect of movements in temporary differences between the book values and tax bases of certain assets at U.S. federal and state tax rates.

A reconciliation between the Irish statutory income tax rate to the Company’s effective tax rate for 2022, 2021 and 2020 is as follows (in thousands):


	For the Years Ended December 31,
	2022			2021			2020
Irish income tax at statutory rate (12.5%)	$	65,867		$	57,853		$	50,206
Foreign tax rate differential		(54,685	)		(58,519	)		(52,300	)
Share-based compensation		(53,129	)		(71,151	)		(23,793	)
Change in valuation allowances		(18,945	)		1,667			4,183
U.S. federal and state tax credits		(12,461	)		(11,551	)		(13,809	)
Non-deductible in-process research and development costs		—			—			9,475
Write-off of U.S. deferred tax asset related to interest expense due to Anti-Hybrid Rules		—			—			15,250
Intercompany transfer and license of IP assets		—			18,700			5,193
U.S. state income taxes		650			(6,798	)		724
Uncertain tax positions		2,431			(5,150	)		1,593
Other non-deductible expenses		4,423			4,880			1,440
Goodwill impairment		11,796			—			—
Change in U.S. state effective tax rate		27,533			(49,388	)		(1,737	)
Disqualified compensation expense		31,389			47,050			14,601
Other, net		585			743			823
Expense (benefit) for income taxes	$	5,454		$	(71,664	)	$	11,849
Effective income tax rate		1.0	%	(15.4)%				3.0	%

The overall effective income tax rate for 2022 of 1.0% was a lower rate than the Irish statutory rate of 12.5% primarily attributable to a tax benefit of $54.7 million recognized on the pre-tax income and losses generated in jurisdictions with statutory tax rates different than the Irish statutory tax rate, excess tax benefits recognized on share-based compensation of $53.1 million, a tax benefit of $18.9 million recognized due to the release of valuation allowances on certain state net operating losses and $12.5 million of U.S. federal and state tax credits generated during the year. These tax benefits are partially offset by tax expense of $31.4 million on non-deductible officers’ compensation, tax expense of $27.5 million recognized due to changes in the state tax rate expected to apply to the reversal of temporary differences between the book values and tax bases of certain assets and tax expense of $11.8 million attributable to an impairment of goodwill which is non-deductible for tax purposes.

The overall effective income tax rate for 2021 of (15.4)% was a lower rate than the Irish statutory rate of 12.5% primarily attributable to the excess tax benefits recognized on share-based compensation of $71.2 million, a tax benefit of $49.4 million recognized due to a reduction in the state tax rate expected to apply to the reversal of temporary differences between the book values and tax bases of certain assets acquired through the Viela acquisition, a tax benefit of $58.5 million recognized on the pre-tax income and losses generated in jurisdictions with statutory tax rates different than the Irish statutory tax rate and $11.6 million of U.S. federal and state tax credits generated during the year. These tax benefits are partially offset by tax expense of $47.1 million on non-deductible officers’ compensation and a tax expense of $18.7 million generated from an intercompany transfer and license of intellectual property from a U.S. subsidiary to an Irish subsidiary.

The overall effective income tax rate for 2020 of 3.0% was a lower rate than the Irish statutory rate of 12.5% primarily attributable to a tax benefit of $52.3 million recognized on the pre-tax income and losses generated in jurisdictions with statutory tax rates different than the Irish statutory tax rate, the excess tax benefits recognized on share-based compensation of $23.8 million and $13.8 million of U.S. federal and state tax credits generated during the year. These tax benefits are partially offset by tax expense of $15.2 million recorded following the publication by the United States Department of Treasury and the Internal Revenue Service of the Final Regulations on the Anti-Hybrid Rules to write off a deferred tax asset related to certain interest expense accrued to a foreign related party, a tax expense of $14.6 million on non-deductible officers’ compensation and tax expense of $9.5 million on non-deductible IPR&D expenses recorded in connection with the acquisition of Curzion.

The change in the effective income tax rate in 2022 compared to that in 2021 was primarily due to changes in the state tax rate expected to apply to the reversal of temporary differences between the book values and tax bases of certain assets.

The change in the effective income tax rate in 2021 compared to that in 2020 was primarily due to an increase in excess tax benefits recognized on share-based compensation and a tax benefit of $49.4 million recognized during the year ended December 31, 2021 due to a reduction in the state tax rate expected to apply to the reversal of temporary differences between the book values and tax bases of certain assets acquired through the Viela acquisition. These increases in benefit were partially offset by an increase in tax expense on non-deductible officers’ compensation.

Significant components of the Company’s net deferred tax assets and liabilities, are as follows (in thousands):


	As of December 31,
	2022			2021
Deferred tax assets:
Net operating loss carryforwards	$	34,299		$	75,431
Accruals and reserves		80,849			37,175
Accrued compensation		43,567			60,827
Intercompany interest		39,977			34,777
U.S. federal and state credits		23,585			47,312
Other		4,105			6,790
Total deferred tax assets		226,382			262,312
Valuation allowance		(18,726	)		(37,672	)
Deferred tax assets, net of valuation allowance	$	207,656		$	224,640
Deferred tax liabilities:
Intangible assets	$	90,533		$	67,321
Property, plant and equipment		19,901			8,614
Interest rate swap		6,708			—
Debt discount		717			1,062
Total deferred tax liabilities		117,859			76,997
Net deferred income tax asset	$	(89,797	)	$	(147,643	)

No provision has been made for income taxes on undistributed earnings of subsidiaries because it is the Company’s intention to indefinitely reinvest outside of Ireland undistributed earnings of its subsidiaries. In the event of the distribution of those earnings to Ireland in the form of dividends, a sale of the subsidiaries, or certain other transactions, the Company may be liable for income taxes in Ireland. The cumulative unremitted earnings of the Company as of December 31, 2022, were approximately $5.0 billion, and the Company estimates that it would incur approximately $269.9 million of additional income tax on unremitted earnings were they to be remitted to Ireland.

As of December 31, 2022, the Company had net operating loss carryforwards of approximately $9.6 million for U.S. federal, $25.7 million for various U.S. states and $0.2 million for non-U.S. losses. Net operating loss carryforwards for U.S. federal income tax purposes that were generated prior to January 1, 2018, have a twenty-year carryforward life and the earliest layers will begin to expire in 2031. U.S. state net operating losses will start to expire at the end of 2023 for the earliest net operating loss layers to the extent there is not sufficient state taxable income to utilize those net operating loss carryovers. Irish net operating losses may be carried forward indefinitely and therefore have no expiration. Utilization of the U.S. net operating loss carryforwards may be subject to annual limitations as prescribed by federal and state statutory provisions. The imposition of the annual limitations may result in a portion of the net operating loss carryforwards expiring unused.

Utilization of certain net operating loss and tax credit carryforwards in the United States is subject to an annual limitation due to ownership change limitations provided by Sections 382 and 383 of the Internal Revenue Code of 1986, as amended. Certain net operating losses generated before an August 2, 2012 ownership change and federal net operating losses and federal tax credits acquired through the Viela acquisition are subject to an annual limitation. The U.S. federal net operating loss carryforward and U.S. federal tax credit carryforward limitation is cumulative such that any use of the carryforwards below the limitation in a particular tax year will result in a corresponding increase in the limitation for the subsequent tax year.

At December 31, 2022, the Company had $11.7 million and $18.1 million of U.S. federal and state income tax credits, respectively, to reduce future tax liabilities. The federal income tax credits consisted primarily of R&D credits. The U.S. state income tax credits consisted primarily of California R&D credits and the Illinois Economic Development for a Growing Economy (“EDGE”) tax credits. The U.S. federal R&D credits have a twenty-year carryforward life and will begin to expire in 2038. The California R&D credits have indefinite lives and therefore are not subject to expiration. The EDGE credits have a five-year carryforward life following the year of generation and will begin to expire at the end of 2023.


Valuation allowances at December 31, 2019	$	(29,268	)
Increase for 2020 activity		(8,841	)
Release of valuation allowances		4,124
Valuation allowances at December 31, 2020	$	(33,985	)
Increase for 2021 activity		(5,181	)
Release of valuation allowances		1,494
Valuation allowances at December 31, 2021	$	(37,672	)
Increase for 2022 activity		(95	)
Release of valuation allowances		19,041
Valuation allowances at December 31, 2022	$	(18,726	)

Deferred tax valuation allowances decreased by $18.9 million during the year ended December 31, 2022 and increased by $3.7 million and $4.7 million during the years ended December 31, 2021 and 2020, respectively. For the year ended December 31, 2022, the net decrease in valuation allowances resulted primarily from the release of valuation allowances on certain state net operating losses which are now expected to be utilized. The Company continues to carry its deferred tax asset established in Ireland, which was recognized at the end of 2019, pursuant to an intercompany transfer of intellectual property assets. The Company has evaluated the need for a valuation allowance with respect to this deferred tax asset, and as part of that analysis, the Company reviewed its projected earnings in the foreseeable future. Based upon all available evidence, it is more likely than not that the Company would be able to fully realize the tax benefit on the deferred tax asset resulting from the intercompany transfer of intellectual property assets.

The changes in the Company’s uncertain income tax positions for the years ended December 31, 2022, 2021 and 2020, excluding interest and penalties, consisted of the following (in thousands):


	For the Years Ended December 31,
	2022			2021			2020
Beginning balance – uncertain tax positions	$	28,447		$	29,431		$	27,428
Tax positions in the year:
Additions		3,893			3,838			3,837
Acquired uncertain tax positions		—			4,220			—
Tax positions related to prior years:
Additions		—			—			—
Settlements and lapses		(1,931	)		(9,042	)		(1,834	)
Ending balance – uncertain tax positions	$	30,409		$	28,447		$	29,431

For the year ended December 31, 2022, the net increase in uncertain tax positions was primarily attributable to additional uncertain tax positions recognized on U.S. federal R&D credits generated during the year partially offset by lapses in statute for a portion of uncertain tax positions relating to U.S. federal orphan drug credits. In the Company’s consolidated balance sheet, uncertain tax positions (including interest and penalties) of $25.9 million were included in other long-term liabilities, and an additional $6.3 million was included in deferred tax assets.

At December 31, 2022, penalties of $0.4 million and interest of $1.9 million are included in the balance of the uncertain tax positions and penalties of $0.3 million and interest of $1.4 million were included in the balance of uncertain tax positions at December 31, 2021. The Company classifies interest and penalties with respect to income tax liabilities as a component of income tax expense. The Company assessed that its liability for uncertain tax positions will not significantly change within the next twelve months. If these uncertain tax positions are released, the impact on the Company’s tax provision would be a benefit of $32.2 million, including interest and penalties.

The Company files income tax returns in Ireland, in the United States for federal and various states, as well as in certain other jurisdictions. At December 31, 2022, open tax years in U.S. federal and certain state jurisdictions date back to 2007 due to the taxing authorities’ ability to adjust operating loss carryforwards. In Ireland, the statute of limitations expires five years from the end of the tax year or four years from the time a tax return is filed, whichever is later. Therefore, the earliest year open to examination is 2018 with the lapse of statute occurring in 2023. No changes in settled tax years have occurred to date.