Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Domestic and Foreign Components of Pre-Tax Loss

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


	Year Ended December 31,
	2023		2022		2021

	(in thousands)
Domestic (1)	$	(285,330)	$	(538,311)	$	364,989
Foreign (1)	(1,009,093)		(862,386)		(839,360)
Loss before income taxes	$	(1,294,423)	$	(1,400,697)	$	(474,371)

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

Schedule of Components of Income Tax (Benefit) Expense

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


	Year Ended December 31,
	2023		2022		2021

	(in thousands)
Current:
Federal	$	—	$	—	$	—
State	8,585		10,704		919
Foreign	26,727		22,404		22,078
Total current income tax expense (benefit)	35,312		33,108		22,997
Deferred:
Federal	1,267		1,212		(6,295)
State	1,061		837		(445)
Foreign	(9,578)		(6,201)		(2,673)
Total deferred income tax expense (benefit)	(7,250)		(4,152)		(9,413)
Income tax expense (benefit)	$	28,062	$	28,956	$	13,584

Summary of Reconciliation of Statutory Federal Income Tax Rate

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


	Year Ended December 31,
	2023		2022		2021
Tax benefit (expense) computed at the federal statutory rate	21.0	%	21.0	%	21.0	%
State tax benefit (expense), net of federal benefit (1)	2.2		2.9		31.5
Change in valuation allowance	(31.5)		(32.0)		(246.3)
Differences between U.S. and foreign tax rates on foreign income	3.3		2.5		3.9
Stock-based compensation	(7.0)		(0.1)		119.3
U.S. federal research & development credit benefit	8.6		5.0		36.7
U.K. corporate rate increase	—		—		39.8
Acquisitions and divestitures	1.8		(0.7)		(8.0)
Other benefits (expenses)	(0.6)		(0.7)		(0.8)
Total income tax benefit (expense)	(2.2)	%	(2.1)	%	(2.9)	%

(1) Inclusive of state research and development credits.

Summary of Significant Components of Net Deferred Tax Balances

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


	Year Ended December 31,
	2023		2022

	(in thousands)
Deferred tax assets:
Accruals and reserves	$	22,475	$	37,731
Intangible assets	168,661		177,762
IRC 174 capitalized R&D	449,253		265,485
Stock-based compensation	70,563		102,364
Loss carryforwards	2,774,231		2,651,812
Tax credit carryforwards	969,368		824,220
Lease liability	126,637		98,668
Other	51,764		20,154
Total deferred tax assets	4,632,952		4,178,196
Deferred tax liabilities:

Right-of-use asset	(111,777)		(75,212)
Investments	(20,183)		(30,962)
Other	(28,416)		(17,309)
Total deferred tax liabilities	(160,376)		(123,483)
Total net deferred tax assets before valuation allowance	4,472,576		4,054,713
Valuation allowance	(4,471,571)		(4,060,943)
Net deferred taxes	$	1,005	$	(6,230)

Summary of Activity Related to Gross Unrecognized Tax Benefits

The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended December 31, 2023, 2022, and 2021:


	Year Ended December 31,
	2023		2022		2021

	(in thousands)
Beginning balance of unrecognized tax benefits	$	510,669	$	469,573	$	344,971
Additions for current year tax positions	46,188		47,366		119,938
Additions for prior year tax positions	10,171		115		180
Reductions for prior year tax positions	(16,736)		(3,569)		(996)
Changes due to lapse of statute of limitations	(31,786)		(1,887)		(2,077)
Reductions for settlements with taxing authorities	(4,927)		—		—
Changes due to foreign currency translation adjustments	(175)		(929)		(357)
U.K. corporate rate increase	—		—		7,914
Ending balance of unrecognized tax benefits (excluding interest and penalties)	513,404		510,669		469,573
Interest and penalties associated with unrecognized tax benefits	967		385		124
Ending balance of unrecognized tax benefits (including interest and penalties)	$	514,371	$	511,054	$	469,697