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INCOME TAXES
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The following table summarizes our Income tax expense:
Three Months EndedSix Months Ended
June 30,June 30,
(in millions, except percentages)2023202220232022
Income before income taxes$1,588 $1,503 $2,888 $1,351 
Income tax expense$(549)$(368)$(865)$(204)
Effective tax rate34.6 %24.5 %29.9 %15.1 %
Our effective income tax rate of 34.6% and 29.9% for the three and six months ended June 30, 2023, respectively, are 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 non-deductible acquired IPR&D expenses recorded in connection with our second quarter 2023 acquisition of XinThera and first quarter 2023 acquisition of Tmunity.
Our effective income tax rate of 24.5% for the three months ended June 30, 2022 is higher than the U.S. federal statutory rate of 21% primarily due to unfavorable changes in the fair value of our equity investments that are non-deductible for income tax purposes.
Our effective income tax rate of 15.1% for the six months ended June 30, 2022 is lower than the U.S. federal statutory rate of 21% primarily due to a decrease in state deferred tax liabilities associated with a partial IPR&D impairment charge of $2.7 billion, partially offset by unfavorable changes in the fair value of our equity investments that are non-deductible for income tax purposes.
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 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.
As of June 30, 2023, we believe that it is reasonably possible that our unrecognized tax benefits may decrease by approximately $500 million in the next 12 months due to potential resolutions with a taxing authority.