INCOME TAXES

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The following table summarizes our Income tax benefit (expense):

	Three Months Ended
	March 31,
(in millions, except percentages)	2023			2022
Income (loss) before income taxes	$	1,300		$	(152)
Income tax benefit (expense)	$	(316)		$	164
Effective tax rate	24.3		%	107.9		%

Our effective income tax rate of 24.3% for the three months ended March 31, 2023 differed from the U.S. federal statutory rate of 21% primarily due to $244 million of non-deductible Acquired in-process research and development expenses recorded in connection with our acquisition of Tmunity.

Our effective income tax rate of 107.9% for three months ended March 31, 2022 differed from the U.S. federal statutory rate of 21% primarily due to a decrease in state deferred tax liabilities associated with a partial IPR&D impairment charge of $2.7 billion.

Our income tax returns are subject to audit by federal, state and foreign tax authorities. We are currently under examination by the Internal Revenue Service for our 2016 to 2018 tax years. There are differing interpretations of tax laws and regulations, and as a result, significant disputes may arise with these tax authorities involving issues of the timing and amount of deductions and allocations of income among various tax jurisdictions. We periodically evaluate our exposures associated with our tax filing positions.