Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Company's Income (Loss) from Operations Before Income Tax Provision (Benefit) by Jurisdiction

The Company’s loss before income tax expense by jurisdiction is as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Domestic	$	(628,984)	$	(712,183)	$	(1,633,016)
Foreign	85,953		58,536		(81,520)
Loss before income tax expense	$	(543,031)	$	(653,647)	$	(1,714,536)

Schedule of Components of Income Tax Expense (Benefit)

Significant components of the current and deferred income tax expense (benefit) are as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Current:
Domestic	$	(1,300)	$	1,300	$	—
State and local	(157)		503		—
Foreign	1,445		2,489		29,215
Total current income tax expense (benefit)	(12)		4,292		29,215
Deferred:
Foreign	2,043		—		—
Total income tax expense	$	2,031	$	4,292	$	29,215

Schedule of Tax Rate Differences

A reconciliation of income tax expense to the amount computed by applying the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows:


	Year Ended December 31,
	2023		2022		2021
Statutory federal tax rate	21	%	21	%	21	%
State income taxes, net of federal benefit	1	%	2	%	6	%
Research and development and other tax credits	—	%	1	%	1	%
Non-deductible expenses	—	%	(1)	%	(2)	%
Non-cash stock-based compensation	(1)	%	(1)	%	4	%
U.S. taxation of foreign operations	(4)	%	(3)	%	—	%
Cancellation of Indebtedness	(1)	%	—	%	(1)	%
Non-US tax credits	4	%	—	%	—	%
Other	—	%	2	%	(1)	%
Change in tax rate	—	%	(20)	%	—	%
Change in valuation allowance	(20)	%	(2)	%	(30)	%
Income tax expense	—	%	(1)	%	(2)	%

Schedule of Deferred Tax Assets (Liabilities)

The significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows (in thousands):


	December 31,
	2023		2022
Deferred tax assets:
Federal and state net operating loss carryforward	$	550,272	$	479,134
Foreign net operating loss carryforward	—		5,752
Research tax credits	51,878		45,560
Lease liability	25,207		27,625
Deferred revenue	266,392		195,049
Inventory reserve	79,386		213,076
Allowance for sales returns	20,756		—
Non-cash stock-based compensation	30,727		27,599
Capitalized research costs	132,500		49,309
Foreign tax credit carryforward	18,679		—
Other	10,996		13,695
Gross deferred tax assets	1,186,793		1,056,799
Valuation allowance	(1,128,941)		(1,020,123)
Total deferred tax assets	$	57,852	$	36,676
Deferred tax liabilities:
ROU assets	(41,456)		(23,330)
Fixed assets	(17,160)		(11,587)
Intangibles	(1,279)		(1,055)
Other	—		(704)
Total deferred tax liabilities	$	(59,895)	$	(36,676)
Net deferred tax assets (liabilities)	$	(2,043)	$	—

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amounts of unrecognized tax benefits in the year ended December 31, 2023, 2022, and 2021 is as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Unrecognized tax benefits balance at January 1	$	5,194	$	11,154	$	8,766
Additions for tax positions of current year	271		1,260		4,158
Additions for tax positions of prior years	—		807		—
Reductions for tax positions of prior year	(1,228)		(8,027)		(1,770)
Settlements of tax positions of prior years	—		—		—
Unrecognized tax benefits balance at December 31,	$	4,237	$	5,194	$	11,154