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

	For the Year Ended December 31,
	2020			2019			2018
	(in thousands)
Domestic	$	(204,956	)	$	(489,747	)	$	(309,294	)
Foreign		(348,109	)		(224,133	)		(53,316	)
Total	$	(553,065	)	$	(713,880	)	$	(362,610	)

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

	For the Year Ended December 31,
	2020			2019			2018
	(in thousands)
Current provision:
Federal	$	4		$	—		$	(110	)
State		624			521			(653	)
Foreign		680			1,050			311
Total current provision		1,308			1,571			(452	)
Deferred benefit:
Federal		—			(15	)		—
State		—			(5	)		—
Foreign		(245	)		(356	)		(240	)
Total deferred benefit		(245	)		(376	)		(240	)
Total current provision	$	1,063		$	1,195		$	(692	)

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,
	2020				2019				2018
Federal income tax rate		21.0		%		21.0		%		21.0		%
State taxes		4.0				6.3				12.3
Research and development and other tax credits		6.6				3.3				3.1
Valuation allowance		(21.3	)			(16.8	)			(45.5	)
Permanent differences		2.2				1.8				6.9
Sarepta International C.V. return to provision		—				—				(0.1	)
Basis difference in subsidiary		—				(8.4	)			—
Foreign rate differential		(12.9	)			(7.4	)			(0.9	)
Other		0.2				—				3.4
Effective tax rate		(0.2	)	%		(0.2	)	%		0.2		%

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 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,
	2020			2019
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	333,703		$	304,033
Difference in depreciation and amortization		31,259			40,095
Research and development tax credits		159,917			103,806
Stock-based compensation		31,212			24,114
Lease liabilities		13,120			15,796
Deferred revenue		—			939
Capitalized inventory		35,959			18,255
Other		28,381			16,270
Total deferred tax assets		633,551			523,308
Deferred tax liabilities:
Right of use asset		(8,772	)		(10,782	)
Debt discount		(18,044	)		(23,099	)
Total deferred tax liabilities		(26,816	)		(33,881	)
Valuation allowance		(605,848	)		(488,829	)
Net deferred tax assets	$	887		$	598

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, 2020 and 2019. The net change in the valuation allowance for deferred tax assets was an increase of $117.0 million and $119.5 million for the years ended December 31, 2020 and 2019, respectively. This increase for the year ended December 31, 2020 was primarily due to the generation of federal and state net operating losses, income tax credits and an increase in capitalized inventory costs.

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 one of the entities in the United Kingdom 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, 2020, the Company had federal and state net operating loss carryforwards of $1,298.3 million and $872.3 million, respectively, available to reduce future taxable income. The federal and state net operating loss carry forwards of $581.3 million and $819.9 million will expire at various dates between 2021 and 2040. The federal and state net operating loss carryforwards of $717.0 million and $52.4 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 historical or future ownership changes and the value of the Company’s stock. Additionally, the Company has $111.9 million and $57.7 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 2021 and 2040 and between 2021 and 2035, respectively. The Company also has foreign net operating loss carryforwards of $11.4 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, 2017 through December 31, 2019. 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,
	2020		2019			2018
	(in thousands)
Balance at beginning of the period	$	41,753	$	37,544		$	5,134
Increase related to current year tax positions		6,722		4,275			2,164
Increase related to prior year tax positions		—		109			30,246
Decrease related to prior year tax positions		—		(175	)		—
Balance at end of the period	$	48,475	$	41,753		$	37,544

The balance of total unrecognized tax benefits at December 31, 2020, 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 consolidated balance sheets at December 31, 2020 or 2019. No interest and/or penalties were recognized in 2019 or 2018.

The Company’s intent is to only make distributions from non-U.S. subsidiaries in the future when they can be made at no net tax cost. Otherwise, the Company considers all of its foreign earnings to be permanently reinvested outside of the U.S. and has no plans to repatriate these foreign earnings to the U.S. The Company has no material unremitted earnings from its non-U.S. subsidiaries.

The Tax Cuts and Jobs Act created a new provision that certain income earned by foreign subsidiaries, known as global intangible low-tax income, must be included in the gross income of their U.S. shareholder. The Company has adopted a policy to account for this provision as a period cost.

The Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") was enacted in the United States on March 27, 2020. While the CARES Act provides extensive tax changes in response to the COVID-19 pandemic, the provisions are not expected to have a significant impact on the Company’s financial results.