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Income Taxes
6 Months Ended
Jun. 30, 2022
Income Taxes  
Income Taxes

Note 11.     Income taxes

For the three and six months ended June 30, 2022, we recorded income tax expense of approximately $67.9 million and $100.5 million, respectively. For the three and six months ended June 30, 2021, we recorded income tax expense of approximately $22.2 million and $38.0 million, respectively. The tax expense for the three and six months ended June 30, 2022 increased as compared to that for the prior year periods due to the release of our valuation allowance against a majority of our U.S. research and development tax credit carryforwards and other deferred tax assets at December 31, 2021.

In the fourth quarter of 2021, we assessed the valuation allowance and considered positive evidence, including significant cumulative consolidated and U.S. income over the three years ended December 31, 2021, consistent growth in product revenues, and expectations regarding future profitability. We also assessed negative evidence, including the potential impact of competition, clinical failures and patent expirations on our projections. After assessing both the positive evidence and negative evidence, we determined it was more likely than not that the majority of our U.S. deferred tax assets would be realized in the future and released the associated valuation allowance as of December 31, 2021. This resulted in a benefit of $569.0 million. As of December 31, 2021, we maintained a valuation allowance of $408.2 million against a portion of our remaining U.S. deferred tax assets as well as select state and foreign deferred tax assets.  

The balance of our unrecognized tax benefits (including penalties and interest) increased by approximately $9.4 million during the six months ended June 30, 2022, resulting in movements to other liabilities and deferred income tax

asset on the condensed consolidated balance sheet.  The overall increase is primarily driven by unrecognized tax benefits related to current year operations and research and development tax credits. We accrue interest and penalties related to unrecognized tax benefits as a component of its provision for income taxes.