Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate was 12.8 percent for the three months ended June 30, 2021, compared with 14.1 percent for the three months ended June 30, 2020. The effective tax rate was 10.6 percent for the six months ended June 30, 2021, compared with 13.7 percent for the six months ended June 30, 2020. The lower effective tax rates for the three and six months ended June 30, 2021 were primarily due to the income tax impact of the excess inventory charges related to our COVID-19 antibodies and lower income tax expense related to lower net gains on investment securities compared to same period in 2020, partially offset by a lower net discrete tax benefit compared to the same period in 2020 and a nondeductible acquired IPR&D charge in the second quarter of 2020.

The U.S. examination of tax years 2016-2018 began in the fourth quarter of 2019 and remains ongoing. The resolution of this audit period will likely extend beyond the next 12 months.