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Income Taxes
6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The effective tax rates were 14.1 percent for the three months ended June 30, 2020, compared with 9.5 percent for the three months ended June 30, 2019. The higher effective tax rate for the three months ended June 30, 2020 was driven by a mix of earnings in higher tax jurisdictions, a lower net discrete tax benefit, and a nondeductible acquired IPR&D charge. The effective tax rate was 13.7 percent for the six months ended June 30, 2020, compared with 14.1 percent for the six months ended June 30, 2019. The lower effective tax rate was driven by non-recurring 2019 events, primarily the non-deductibility of the accelerated vesting of Loxo employee equity awards as part of the closing of the acquisition of Loxo, as well as tax expenses associated with the withdrawal of Lartruvo®, offset by a mix of earnings in higher tax jurisdictions in 2020.
During the fourth quarter of 2019, the Internal Revenue Service began its examination of tax years 2016-2018. Because this examination is still in the early stages of information gathering, the resolution of the audit will likely extend beyond the next 12 months.