Income taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income taxes

12. Income Taxes

The table below presents our (loss) income before benefit from (provision for) income taxes, benefit from (provision for) income taxes and effective tax rate for all periods presented (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30
	2022			2021			2022			2021
(Loss) income before benefit from (provision for) income taxes	$	(233,721	)	$	61,866		$	688,186		$	(106,849	)
Benefit from (provision for) income taxes	$	157,228		$	(53	)	$	(246,058	)	$	(249	)
Effective tax rate		67.3	%		0.1	%		35.8	%		-0.2	%

We are subject to income taxes in the United States and foreign jurisdictions in which we do business. These foreign jurisdictions have statutory tax rates different from those in the United States. Accordingly, our effective tax rates will vary depending on the relative proportion of foreign to United States income, the utilization of net operating loss and tax credit carry forwards, changes in geographic mix of income and expense, and changes in management’s assessment of matters such as the ability to realize deferred tax assets, and changes in tax laws.

The increase in the effective tax rate from the three and six months ended June 30, 2021 was primarily due to current year collaboration revenue and the requirement under the Tax Cuts and Jobs Act of 2017 for taxpayers to capitalize and amortize research and development expenditures over five or fifteen years pursuant to Section 174 of the Internal Revenue Code of 1986, as amended.

Unrecognized tax benefits were $10.6 million and $7.4 million as of June 30, 2022 and December 31, 2021, respectively, and if recognized, would favorably affect the effective tax rate in future periods.