Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

The domestic and foreign components of income (loss) before income taxes were as follows (in thousands):

The components of the provision for (benefit from) income taxes were as follows (in thousands):


	Year Ended December 31,
	2019		2020		2021
Current
Federal	$	223,673	$	(91,094)	$	4,704
State	5,930		(976)		2,238
Foreign	38,660		14,449		33,950
Total current provision for (benefit from) income taxes	268,263		(77,621)		40,892
Deferred
Federal	(1,563)		47		98
State	(248)		55		—
Foreign	(3,816)		(19,703)		10,837
Total deferred benefit for income taxes	(5,627)		(19,601)		10,935
Total provision for (benefit from) income taxes	$	262,636	$	(97,222)	$	51,827

The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate:


	Year Ended December 31,
	2019		2020		2021
Expected income tax expense at federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefits	(0.2)		—		(0.7)
Foreign tax rate differential	(19.5)		(0.5)		(5.1)
Stock-based compensation	(0.9)		7.1		282.4
Acquisition related expenses	(0.3)		—		—
Deferred tax impacts of restructuring	—		6.5		(9.7)
Other statutorily non-deductible expenses	(2.6)		(0.3)		(1.1)
Non-deductible warrant revaluations	—		(3.9)		(20.4)
Research and development credits	(0.9)		4.3		51.0
Uncertain tax positions—prior year positions	(53.0)		(0.1)		(3.1)
Uncertain tax positions—current year positions	(4.2)		(0.2)		(1.0)
Other	0.2		0.3		1.3
Change in valuation allowance	(3.4)		(32.1)		(331.9)
Effective tax rate	(63.8)	%	2.1	%	(17.3)	%

The components of deferred tax assets and liabilities consisted of the following (in thousands):


	As of December 31,
	2020		2021
Deferred tax assets:
Net operating loss carryforwards	$	1,078,070	$	1,987,606
Tax credit carryforwards	333,991		568,468
Accruals and reserves	70,130		105,530
Non-income tax accruals	71,706		64,757
Stock-based compensation	211,216		156,726
Operating lease liabilities	94,840		86,690
Intangible assets	274,396		210,057
Other	53,477		155,020
Gross deferred tax assets	2,187,826		3,334,854
Valuation allowance	(2,053,069)		(3,263,823)
Total deferred tax assets	134,757		71,031
Deferred tax liabilities:
Property and equipment basis differences	(33,503)		(7,834)
Operating lease assets	(72,659)		(48,628)
Other	(3,091)		—
Total deferred tax liabilities	(109,253)		(56,462)
Total net deferred tax assets	$	25,504	$	14,569

A reconciliation of the beginning and ending amount of the Company’s total gross unrecognized tax benefits was as follows (in thousands):


	Year Ended December 31,
	2019		2020		2021
Balance at beginning of period	$	69,837	$	336,726	$	507,865
Gross increases related to prior year tax positions	237,972		2,223		13,568
Gross decreases related to prior year tax positions	(5,029)		(5,970)		(1,772)
Gross increases related to current year tax positions	36,502		196,492		84,990
Reductions due to settlements with taxing authorities	(2,296)		(21,240)		(1,313)
Reduction due to lapse in statute of limitations	(260)		(366)		(6,776)
Balance at end of period	$	336,726	$	507,865	$	596,562