Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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


	Year Ended December 31,
	2020		2021		2022
Domestic	$	(4,510)	$	(390)	$	1,820
Foreign	(172)		90		169
Income (loss) before income taxes	$	(4,682)	$	(300)	$	1,989

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


	Year Ended December 31,
	2020		2021		2022
Current
Federal	$	(91)	$	5	$	19
State	(1)		2		10
Foreign	15		34		68
Total current provision for (benefit from) income taxes	(77)		41		97
Deferred
Federal	—		—		—
State	—		—		—
Foreign	(20)		11		(1)
Total deferred provision for (benefit from) income taxes	(20)		11		(1)
Total provision for (benefit from) income taxes	$	(97)	$	52	$	96

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


	Year Ended December 31,
	2020		2021		2022
Expected income tax expense at federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefits	—		(0.7)		0.4
Foreign tax rate differential	(0.5)		(5.1)		1.0
Stock-based compensation	7.1		282.4		(6.9)

Deferred tax impacts of restructuring	6.5		(9.7)		—
Other statutorily non-deductible expenses	(0.3)		(1.1)		0.3
Non-deductible warrant revaluations	(3.9)		(20.4)		(0.1)
Research and development credits	4.3		51.0		(4.7)
Uncertain tax positions—prior year positions	(0.1)		(3.1)		0.1
Uncertain tax positions—current year positions	(0.2)		(1.0)		0.8
US tax on foreign income, net of allowable credits and deductions	—		—		0.7
Foreign-derived intangible income deduction	—		—		(1.9)
Other	0.3		1.3		0.1
Change in valuation allowance	(32.1)		(331.9)		(6.0)
Effective tax rate	2.1	%	(17.3)	%	4.8	%

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


	December 31,
	2021		2022
Deferred tax assets:
Net operating loss carryforwards	$	1,988	$	1,539
Tax credit carryforwards	568		664
Accruals and reserves	106		123
Non-income tax accruals	65		68
Stock-based compensation	157		111
Operating lease liabilities	87		73
Intangible assets	210		188
Capitalized research and development costs	—		413
Other	155		37
Gross deferred tax assets	3,336		3,216
Valuation allowance	(3,264)		(3,166)
Total deferred tax assets	72		50
Deferred tax liabilities:
Property and equipment basis differences	(8)		(9)
Operating lease assets	(49)		(23)
Other	—		(2)
Total deferred tax liabilities	(57)		(34)
Total net deferred tax assets	$	15	$	16

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


	Year Ended December 31,
	2020		2021		2022
Balance at beginning of year	$	337	$	508	$	597
Gross increases related to prior year tax positions	2		14		7
Gross decreases related to prior year tax positions	(6)		(2)		(2)
Gross increases related to current year tax positions	196		85		60
Reductions due to settlements with taxing authorities	(21)		(1)		(7)
Reduction due to lapse in statute of limitations	—		(7)		(5)
Balance at end of year	$	508	$	597	$	650