Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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,
	2021			2020			2019
	(in thousands)
Domestic⁽¹⁾	$	364,989		$	(320,757	)	$	(770,448	)
Foreign⁽¹⁾		(839,360	)		(605,428	)		(262,819	)
Loss before income taxes	$	(474,371	)	$	(926,185	)	$	(1,033,267	)

(1)

Includes the impact of intercompany charges to foreign affiliates for 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,
	2021		2020		2019
	(in thousands)
Current:
Federal	$	—	$	—	$	—
State		919		1,035		113
Foreign		22,078		23,945		771
Total current income tax expense		22,997		24,980		884
Deferred:
Federal		6,295		1,720		277
State		445		414		85
Foreign		2,673		4,192		129
Total deferred income tax benefit		9,413		6,326		491
Income tax expense	$	13,584	$	18,654	$	393

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,
	2021			2020			2019
Tax benefit (expense) computed at the federal statutory rate		21.0	%		21.0	%		21.0	%
State tax benefit (expense), net of federal benefit⁽¹⁾		31.5			8.3			7.6
Change in valuation allowance		(246.3	)		(58.9	)		(38.5	)
Differences between U.S. and foreign tax rates on foreign income		3.9			(1.4	)		(1.0	)
Stock-based compensation benefit		119.3			17.8			0.8
U.S. federal research & development credit benefit		36.7			8.4			6.3
U.K. corporate rate increase		39.8			4.3			—
Acquisitions and divestitures		(8.0	)		(0.5	)		3.5
Other benefits (expenses)		(0.8	)		(1.0	)		0.3
Total income tax benefit (expense)		(2.9	)%		(2.0	)%		(0.0)	%

(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,
	2021			2020
	(in thousands)
Deferred tax assets:
Accrued expenses	$	30,169		$	23,719
Intangible assets		183,441			175,397
Stock-based compensation		61,885			41,246
Loss carryforwards		2,631,230			1,714,870
Tax credit carryforwards		715,844			460,302
Lease liability		93,312			80,794
Other		29,572			6,374
Total deferred tax assets	$	3,745,453		$	2,502,702
Deferred tax liabilities:
Convertible debt		—			(138,832	)
Right-of-use asset		(75,782	)		(63,122	)
Investments⁽¹⁾		(66,792	)		(3,862	)
Other		(2,549	)		(3,532	)
Total deferred tax liabilities	$	(145,123	)	$	(209,348	)
Total net deferred tax assets before valuation allowance		3,600,330			2,293,354
Valuation allowance		(3,611,242	)		(2,293,361	)
Net deferred taxes	$	(10,912	)	$	(7	)

(1)

For the year ended December 31, 2020 was originally included in “Other Liabilities” in our December 31, 2020 Annual Report as it was not significant. The increase in the current year is primarily due to unrealized gains on our marketable securities and strategic investments.

Summary of Activity Related to Gross Unrecognized Tax Benefits

The following table summarizes the activity related to our gross unrecognized tax benefits during the years ended December 31, 2021 and 2020:

	Year Ended December 31,
	2021			2020
	(in thousands)
Beginning balance of unrecognized tax benefits	$	344,971		$	286,605
Additions for current year tax positions		119,938			56,226
Additions for prior year tax positions		180			3,218
Reductions for prior year tax positions		(996	)		(712	)
Changes due to lapse of statute of limitations		(2,077	)		(570	)
Changes due to foreign currency translation adjustments		(357	)		204
U.K. corporate rate increase		7,914			—
Ending balance of unrecognized tax benefits (excluding interest and penalties)	$	469,573		$	344,971
Interest and penalties associated with unrecognized tax benefits		124			357
Ending balance of unrecognized tax benefits (including interest and penalties)	$	469,697		$	345,328