XML 30 R21.htm IDEA: XBRL DOCUMENT v3.22.2.2
INCOME TAXES
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The following table summarizes our Income tax expense:
Three Months EndedNine Months Ended
September 30,September 30,
(in millions, except percentages)2022202120222021
Income before income taxes
$2,432 $3,438 $3,783 $7,519 
Income tax expense$(646)$(852)$(850)$(1,694)
Effective tax rate26.6 %24.8 %22.5 %22.5 %
Our effective income tax rate of 26.6% and 22.5% for the three and nine months ended September 30, 2022, respectively, was higher than the U.S. federal statutory rate of 21% primarily due to $389 million of non-deductible Acquired in-process research and development expenses recorded in connection with our acquisition of MiroBio.
Our effective income tax rate of 24.8% for the three months ended September 30, 2021 was higher than the U.S. federal statutory rate of 21% primarily due to remeasurement of certain deferred tax liabilities related to acquired intangible assets, partially offset by provision to return adjustments.
Our effective income tax rate of 22.5% for the nine months ended September 30, 2021 was higher than the U.S. federal statutory rate of 21% primarily due to remeasurement of certain deferred tax liabilities related to acquired intangible assets and unfavorable changes in the fair value of our equity investment in Galapagos that are non-deductible for income tax purposes, partially offset by provision to return adjustments.
Our income tax returns are subject to audit by federal, state and foreign tax authorities. We are currently under examination by the Internal Revenue Service and Irish tax authorities for our 2016 to 2018 tax years. There are differing interpretations of tax laws and regulations, and as a result, significant disputes may arise with these tax authorities involving issues of the timing and amount of deductions and allocations of income among various tax jurisdictions. We periodically evaluate our exposures associated with our tax filing positions.