v3.22.2.2
INCOME TAXES
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income before income taxes and income tax expense are as follows (dollar amounts in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Income before income taxes:
   Domestic$9,230 $25,167 $39,610 $66,962 
   Foreign(7,161)(936)(8,240)(4,360)
      Total income before income taxes$2,069 $24,231 $31,370 $62,602 
Income tax expense$2,762 $6,571 $5,359 $15,492 
Effective tax rate133 %27 %17 %25 %
The Company’s income tax expense represents the estimated annual effective tax rate applied to the year-to-date domestic operating results adjusted for certain discrete tax items.
The Company’s effective tax rates for the three months ended September 30, 2022 and September 30, 2021 include non-deductible executive compensation and valuation allowances recorded against non-U.S. results and deductible capital losses. The three months ended September 30, 2022 also includes benefits for a first quarter Skyepharma milestone payment and a fair value adjustment for Flexion contingent consideration.
The Company’s effective tax rates for the nine months ended September 30, 2022 and September 30, 2021 include non-deductible executive compensation costs and valuation allowances recorded against non-U.S. results and deductible capital losses, offset by benefits related to stock based compensation. The nine months ended September 30, 2022 also include benefits for a first quarter Skyepharma milestone payment and a fair value adjustment for Flexion contingent consideration.