Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

The domestic and foreign components of pre-tax loss were as follows:


(1)			Includes the impact of intercompany charges to foreign affiliates for management fees and research and development cost sharing, inclusive of stock-based compensation.

The components of our income tax (benefit) expense were as follows:


	Year Ended December 31,
	2022		2021		2020

	(in thousands)
Current:
Federal	$	—	$	—	$	—
State	10,704		919		1,035
Foreign	22,404		22,078		23,945
Total current income tax expense (benefit)	33,108		22,997		24,980
Deferred:
Federal	1,212		(6,295)		(1,720)
State	837		(445)		(414)
Foreign	(6,201)		(2,673)		(4,192)
Total deferred income tax expense (benefit)	(4,152)		(9,413)		(6,326)
Income tax expense (benefit)	$	28,956	$	13,584	$	18,654

The following is a reconciliation of the statutory federal income tax rate to our effective tax rate:


	Year Ended December 31,
	2022		2021		2020
Tax benefit (expense) computed at the federal statutory rate	21.0	%	21.0	%	21.0	%
State tax benefit (expense), net of federal benefit(1)	2.9		31.5		8.3
Change in valuation allowance	(32.0)		(246.3)		(58.9)
Differences between U.S. and foreign tax rates on foreign income	2.5		3.9		(1.4)
Stock-based compensation benefit	(0.1)		119.3		17.8
U.S. federal research & development credit benefit	5.0		36.7		8.4
U.K. corporate rate increase	—		39.8		4.3
Acquisitions and divestitures	(0.7)		(8.0)		(0.5)
Other benefits (expenses)	(0.7)		(0.8)		(1.0)
Total income tax benefit (expense)	(2.1)	%	(2.9)	%	(2.0)	%


(1)			Inclusive of state research and development credits.

The significant components of net deferred tax balances were as follows:


	Year Ended December 31,
	2022		2021

	(in thousands)
Deferred tax assets:
Accrued expenses	$	37,731	$	30,169
Intangible assets	177,762		183,441
IRC 174 Capitalized R&D(1)	265,485		—
Stock-based compensation	102,364		61,885
Loss carryforwards	2,651,812		2,631,230
Tax credit carryforwards	824,220		715,844
Lease liability	98,668		93,312
Other	20,154		29,572
Total deferred tax assets	$	4,178,196	$	3,745,453
Deferred tax liabilities:

Right-of-use asset	(75,212)		(75,782)
Investments	(30,962)		(66,792)
Other	(17,309)		(2,549)
Total deferred tax liabilities	$	(123,483)	$	(145,123)
Total net deferred tax assets before valuation allowance	4,054,713		3,600,330
Valuation allowance	(4,060,943)		(3,611,242)
Net deferred taxes	$	(6,230)	$	(10,912)


(1)			An offsetting reduction is included in loss carryforwards as of December 31, 2022 as U.S. federal and state loss carryforwards were utilized to offset the increase in federal and state tax liability resulting from capitalization under Section 174 of the Internal Revenue Code.

The following table summarizes the activity related to our gross unrecognized tax benefits during the years ended December 31, 2022 and 2021:


	Year Ended December 31,
	2022		2021

	(in thousands)
Beginning balance of unrecognized tax benefits	$	469,573	$	344,971
Additions for current year tax positions	47,366		119,938
Additions for prior year tax positions	115		180
Reductions for prior year tax positions	(3,569)		(996)
Changes due to lapse of statute of limitations	(1,887)		(2,077)
Changes due to foreign currency translation adjustments	(929)		(357)
U.K. corporate rate increase	—		7,914
Ending balance of unrecognized tax benefits (excluding interest and penalties)	$	510,669	$	469,573
Interest and penalties associated with unrecognized tax benefits	385		124
Ending balance of unrecognized tax benefits (including interest and penalties)	$	511,054	$	469,697