Income Taxes (Tables)

9 Months Ended

Sep. 30, 2023

Reconciliation between the U.S. federal statutory tax rate and effective tax rate

A reconciliation between the U.S. federal statutory tax rate and our effective tax rate is summarized as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022
Statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State taxes	(1.3)		1.9		1.6		1.1
Taxes on foreign earnings	2.6		(3.4)		(6.1)		(4.4)
Tax credits	24.6		(1.4)		(7.7)		(1.5)
Purchased intangible assets	(2.3)		0.1		0.7		0.2



GILTI	14.8		0.8		(1.7)		0.5



Sale of Samsung Bioepis	—		(0.8)		—		(1.9)
Litigation settlement agreement	—		(1.2)		—		3.1
Neurimmune tax impacts	(0.1)		—		—		2.8
International reorganization	—		—		—		(1.7)
Other, including permanent items	(7.7)		0.2		1.4		0.2
Effective tax rate	51.6	%	17.2	%	9.2	%	19.4	%

The effective tax rate for the three months ended September 30, 2023, reflects a tax benefit of $72.9 million recognized as a result of a pretax loss from operations of $141.2 million recorded during the third quarter of 2023, which was driven, in part, by the impact of the non-cash changes in the value of our equity investments and Reata acquisition-related expenses. For all other periods presented, the effective tax rates reflect tax expense on pretax income from operations in the respective periods.