The following table summarizes the loss before the provision for income taxes by jurisdiction for the periods indicated:

	For the Year Ended December 31,
	2019			2018			2017
	(in thousands)
Domestic	$	(489,747	)	$	(309,294	)	$	(45,686	)
Foreign		(224,133	)		(53,316	)		(2,942	)
Total	$	(713,880	)	$	(362,610	)	$	(48,628	)

The following table summarizes provision for income taxes in the accompanying consolidated financial statements for the periods indicated:

	For the Year Ended December 31,
	2019			2018			2017
	(in thousands)
Current provision:
Federal	$	—		$	(110	)	$	204
State		521			(653	)		1,856
Foreign		1,050			311			—
Total current provision		1,571			(452	)		2,060
Deferred benefit:
Federal		(15	)		—			—
State		(5	)		—			—
Foreign		(356	)		(240	)		—
Total deferred benefit		(376	)		(240	)		—
Total current provision	$	1,195		$	(692	)	$	2,060

The following table summarizes the reconciliation between the Company’s effective tax rate and the income tax rate for each of the periods indicated:

	For the Year Ended December 31,
	2019				2018				2017
Federal income tax rate		21.0		%		21.0		%		34.0		%
State taxes		6.3				12.3				(27.7	)
Research and development and other tax credits		3.3				3.1				8.5
Valuation allowance		(16.8	)			(45.5	)			(93.2	)
Permanent differences		1.8				6.9				6.4
Sarepta International C.V. return to provision		—				(0.1	)			62.1
Impact of tax reform, net of valuation allowance		—				—				5.9
Basis difference in subsidiary		(8.4	)			—				—
Foreign rate differential		(7.4	)			(0.9	)			(0.6	)
Other		—				3.4				0.4
Effective tax rate		(0.2	)	%		0.2		%		(4.2	)	%

Permanent differences affecting the Company’s effective tax rate primarily include excess stock-based compensation tax deductions, net of non-deductible stock-based compensation and limitation on officer compensation deduction.

In February 2019, the Company exercised its option to acquire Myonexus. Accumulated costs of $253.7 million, associated with the Myonexus acquisition, were expensed for U.S. GAAP purposes. Of the $253.7 million in accumulated costs, $85.0 million relates to up-front and milestone payments as a result of the execution of the Warrant Agreement in May 2018 as well as certain development milestones being achieved or becoming probable of being achieved and $168.7 million relates to the exercise of the exclusive option to acquire Myonexus in February 2019. For U.S. income tax purposes, these costs are considered to be an outside investment in the subsidiary and are not currently deductible for tax purposes. The permanent difference related to this acquisition is separately stated in the rate reconciliation above.

In December 2012, the Company licensed certain intellectual property of Sarepta Therapeutics, Inc. to its wholly owned Netherlands subsidiary, Sarepta International C.V. The parties also entered into a contract research agreement under which Sarepta Therapeutics, Inc. performs research services for Sarepta International C.V. In January 2016, Sarepta Therapeutics, Inc. entered into a manufacturing and distribution agreement as well as service agreement with Sarepta International C.V. In conjunction with its recent filings, it was determined that beginning in 2016, Sarepta International C.V. is effectively connected with the conduct of a trade or business by the entity in the U.S. and, accordingly, the 2016, 2017 and 2018 losses are subject to U.S. income taxes. In May 2018, Sarepta International C.V. merged into another wholly owned U.S. subsidiary of Sarepta Therapeutics, Inc.

The following table summarizes the analysis of the deferred tax assets and liabilities for each of the periods indicated:

	As of December 31,
	2019			2018
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	304,033		$	212,342
Difference in depreciation and amortization		40,095			55,162
Research and development tax credits		103,806			67,309
Stock-based compensation		24,114			15,538
Lease liabilities		15,796			4,831
Deferred revenue		939			888
Capitalized inventory		18,255			22,943
Other		16,270			15,727
Total deferred tax assets		523,308			394,740
Deferred tax liabilities:
Right of use asset		(10,782	)		—
Debt discount		(23,099	)		(25,162	)
Total deferred tax liabilities		(33,881	)		(25,162	)
Valuation allowance		(488,829	)		(369,345	)
Net deferred tax assets	$	598		$	233

The Company has evaluated the positive and negative evidence bearing upon the realizability of its U.S. net deferred tax assets, which are comprised principally of federal and state net operating loss carryforwards, research and development tax credit carryforwards, stock-based compensation expense, capitalized inventory, and intangibles. Under the applicable accounting standards, management has considered the Company’s history of losses and concluded that it is more likely than not that the Company will not recognize the benefits of net federal and state deferred tax assets. Accordingly, a full valuation allowance of the U.S. net deferred tax asset had been established at December 31, 2019 and 2018. The net change in the valuation allowance for deferred tax assets was an increase of $119.5 million and $164.8 million for the years ended December 31, 2019 and 2018, respectively. This increase for the year ended December 31, 2019 was primarily due to the generation of federal and state net operating losses and income tax credits.

The Company generated foreign deferred tax assets mainly consisting of net operating loss carryforwards, stock-based compensation and unrealized gain/losses. Based upon the income projections in the majority of the foreign jurisdictions, the Company believes it will realize the benefit of its future deductible differences in these jurisdictions. As such, the Company has not recorded a valuation allowance against these foreign jurisdictions. Brazil, the Netherlands, Czech Republic, and Spain have generated deferred tax assets, which consist of net operating loss carryforwards and stock-based compensation expense. The Company has concluded that it is more likely than not that we will not recognize the future benefits of the deferred tax assets, and accordingly, a full valuation allowance has been recorded against these foreign deferred tax assets. In 2019, the Company undertook an internal restructuring involving its subsidiary in Switzerland. The restructuring resulted in the utilization of all of its net operating loss carryforwards and the release of its previously established valuation allowance of $7.9 million.

As of December 31, 2019, the Company had federal and state net operating loss carryforwards of $1,166.2 million and $859.0 million, respectively, available to reduce future taxable income. The federal and state net operating loss carry forwards of $579.9 million and $807.7 million will expire at various dates between 2020 and 2039. The federal and state net operating loss carry forwards of $586.3 million and $51.3 million, respectively, can be carried forward indefinitely. Utilization of these net operating losses could be limited under Section 382 of the Internal Revenue Code and similar state laws based on ownership changes and the value of the Company’s stock. Additionally, the Company has $74.7 million and $34.1 million of federal and state research and development credits, respectively, available to offset future taxable income. These federal and state research and development credits begin to expire between 2020 and 2039 and between 2020 and 2034, respectively. The Company also has foreign net operating loss carryforwards of $8.0 million, mainly derived from the net operating loss generated by its subsidiary in Brazil, which may be carried forward indefinitely.

The Company or one of its subsidiaries files income tax returns in the U.S., and various state and foreign jurisdictions. The federal, state and foreign income tax returns are generally subject to tax examinations for the tax years ended December 31, 2016 through December 31, 2018. To the extent the Company has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period.

The follow table summarizes the reconciliation of the beginning and ending amount of total unrecognized tax benefits for each of the periods indicated:

	For the Year Ended December 31,
	2019			2018		2017
	(in thousands)
Balance at beginning of the period	$	37,544		$	5,134	$	4,644
Increase related to current year tax positions		4,275			2,164		735
Increase related to prior year tax positions		109			30,246		—
Decrease related to prior year tax positions		(175	)		—		(245	)
Balance at end of the period	$	41,753		$	37,544	$	5,134

The balance of total unrecognized tax benefits at December 31, 2019, if recognized, would not affect the effective tax rate on income from continuing operations, due to a full valuation allowance against the Company’s U.S. deferred tax assets. The Company does not expect that the amount of unrecognized tax benefits to change significantly in the next twelve months. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. It had no accrual for interest or penalties on its balance sheet at December 31, 2019 or 2018. No interest and/or penalties were recognized in 2018 or 2017.