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Income Taxes
 9 Months Ended
Sep. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes
Note 11. Income Taxes
For the three and nine months ended September 30, 2023 and 2022, we recorded the following provisions for income taxes and effective tax rates as compared to our income before provision for income taxes (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
Income before provision for income taxes$233,799 $148,588 $563,259 $448,501 
Provision for income taxes62,530 35,813 166,739 136,302 
Effective tax rate26.7%24.1%29.6%30.4%
Our effective tax rate for each of the three and nine months ended September 30, 2023 and 2022 was higher than the U.S. statutory rate primarily due to foreign losses with no associated tax benefit (i.e., full valuation allowance) and an increase in our valuation allowance against certain U.S. federal and state deferred tax assets offset to a lesser extent by tax rate benefits associated with research and development and orphan drug tax credit generations and foreign derived intangible income deductions.
The effective tax rate for the three months ended September 30, 2023 increased as compared to the prior year period primarily due to an increase in foreign losses with no associated tax benefit. The effective tax rate for the nine months ended September 30, 2023 decreased as compared to the prior year period primarily due to greater tax benefits recognized in 2023 associated with research and development and orphan drug tax credit generations, partially offset by a decrease in the tax benefit associated with foreign derived intangible income.
The balance of our unrecognized tax benefits (including penalties and interest) decreased by $2.1 million during the nine months ended September 30, 2023. This movement was primarily driven by reductions related to prior period tax positions of $10.1 million, offset by additions to current and prior period tax positions of $5.3 million, as well as $2.7 million of interest and penalties. We accrue interest and penalties related to unrecognized tax benefits as a component of its provision for income taxes.
In August 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted into law. The IRA includes a 15% corporate alternative minimum tax and a 1% excise tax on share repurchases. We do not expect the IRA's tax provisions to have a material impact on our consolidated financial statements.