Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 9. Income taxes

The following table presents the income (loss) before income taxes, income tax (expense) benefit and effective income tax rates for all periods presented:

Loss before income tax expense	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2022			2021			2022			2021
Domestic		(22,064	)		(23,152	)		(37,706	)		(30,204	)
Foreign		30,507			(3,307	)		165,682			(9,789	)
Loss before income tax expense		8,443			(26,459	)		127,976			(39,993	)
Income tax expense		(2,817	)		-			(52,768	)		-
Effective tax rate		33.4	%		0.0	%		41.2	%		0.0	%

The effective tax rates for the three and six months ended June 30, 2022 were higher than the federal and foreign statutory rates of 21% and 25%, respectively, primarily due to the mix of income between the U.S. and Belgium, the Innovation Income Deduction in Belgium, which excludes 85% of the net revenue generated from qualifying intellectual property from taxation, the taxation in the U.S. from the inclusion of foreign earnings under the Global Intangible Low-Taxed Income ("GILTI") regime, and capitalized research and development expenses under Section 174 of the Internal Revenue Code. In addition, the Company recorded an additional liability of $3.2 million and $25.5 million during the three and six months ended June 30, 2022, respectively, related to an uncertain tax position regarding the Company’s allocation of revenue between Belgium and the U.S. During the three and six months ended June 30, 2022, the Company

had accrued interest and penalties relating to uncertain tax positions of $3.9 million, all of which was included in the unrecognized tax benefits liability in the condensed consolidated balance sheet as of June 30, 2022.

The increase in the unrecognized tax benefits during the three and six months ended June 30, 2022 was caused by the recognition of additional revenue, and the resulting income, during those periods under the GSK Collaboration Agreement. As the uncertain tax position relates to the Company’s allocation of that revenue and resulting income between the U.S. and Belgium under the GSK Agreement, the additional recognition of revenue under that agreement increases the liability for the uncertain tax position.