Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2020 |
Income Tax Disclosure [Abstract] |
|
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, |
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
|
(in thousands) |
|
Domestic |
|
$ |
(320,757 |
) |
|
$ |
(770,448 |
) |
|
$ |
(969,922 |
) |
Foreign |
|
|
(605,428 |
) |
|
|
(262,819 |
) |
|
|
(283,442 |
) |
Loss before income taxes |
|
$ |
(926,185 |
) |
|
$ |
(1,033,267 |
) |
|
$ |
(1,253,364 |
) |
|
Schedule of Components of Income Tax (Benefit) Expense |
The components of our income tax (benefit) expense were as follows:
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
|
(in thousands) |
|
Current: |
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
State |
|
|
1,035 |
|
|
|
113 |
|
|
|
106 |
|
Foreign |
|
|
23,945 |
|
|
|
771 |
|
|
|
2,824 |
|
Total current income tax (benefit) expense |
|
|
24,980 |
|
|
|
884 |
|
|
|
2,930 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
(1,720 |
) |
|
|
(277 |
) |
|
|
(15 |
) |
State |
|
|
(414 |
) |
|
|
(85 |
) |
|
|
(40 |
) |
Foreign |
|
|
(4,192 |
) |
|
|
(129 |
) |
|
|
(328 |
) |
Total deferred income tax (benefit) expense |
|
|
(6,326 |
) |
|
|
(491 |
) |
|
|
(383 |
) |
Income tax (benefit) expense |
|
$ |
18,654 |
|
|
$ |
393 |
|
|
$ |
2,547 |
|
|
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, |
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Tax benefit (expense) computed at the federal statutory rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
|
|
21.0 |
% |
State tax benefit (expense), net of federal benefit |
|
|
8.3 |
|
|
|
7.6 |
|
|
|
5.1 |
|
Change in valuation allowance |
|
|
(58.9 |
) |
|
|
(38.5 |
) |
|
|
(28.4 |
) |
Differences between U.S. and foreign tax rates on foreign income |
|
|
(1.4 |
) |
|
|
(1.0 |
) |
|
|
(0.9 |
) |
Stock-based compensation benefit (expense) |
|
|
17.8 |
|
|
|
0.8 |
|
|
|
(1.2 |
) |
U.S. federal research & development credit benefit |
|
|
8.4 |
|
|
|
6.3 |
|
|
|
5.2 |
|
U.K. corporate rate increase |
|
|
4.3 |
|
|
|
— |
|
|
|
— |
|
Acquisitions and divestitures |
|
|
(0.1 |
) |
|
|
3.4 |
|
|
|
0.2 |
|
Other benefits (expenses) |
|
|
(1.4 |
) |
|
|
0.4 |
|
|
|
(1.2 |
) |
Total income tax benefit (expense) |
|
|
(2.0 |
)% |
|
|
(0.0) |
% |
|
|
(0.2 |
)% |
|
Summary of Significant Components of Net Deferred Tax Balances |
The significant components of net deferred tax balances were as follows:
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
|
(in thousands) |
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
Accrued expenses |
|
$ |
23,719 |
|
|
$ |
31,746 |
|
Intangible assets |
|
|
175,397 |
|
|
|
172,228 |
|
Stock-based compensation |
|
|
41,246 |
|
|
|
134,489 |
|
Loss carryforwards |
|
|
1,714,870 |
|
|
|
1,201,569 |
|
Tax credit carryforwards |
|
|
460,302 |
|
|
|
337,497 |
|
Lease liability |
|
|
80,794 |
|
|
|
84,154 |
|
Other(1) |
|
|
6,374 |
|
|
|
5,390 |
|
Total deferred tax assets |
|
$ |
2,502,702 |
|
|
$ |
1,967,073 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
Convertible debt |
|
|
(138,832 |
) |
|
|
(87,904 |
) |
Right-of-use asset |
|
|
(63,122 |
) |
|
|
(63,595 |
) |
Other(1) |
|
|
(7,394 |
) |
|
|
(4,325 |
) |
Total deferred tax liabilities |
|
$ |
(209,348 |
) |
|
$ |
(155,824 |
) |
Total net deferred tax assets before valuation allowance |
|
|
2,293,354 |
|
|
|
1,811,249 |
|
Valuation allowance |
|
|
(2,293,361 |
) |
|
|
(1,811,666 |
) |
Net deferred taxes |
|
$ |
(7 |
) |
|
$ |
(417 |
) |
|
(1) |
“Other” was originally presented net in our Annual Report on Form 10-K for the period ending December 31, 2019, and is now separated into “Other Assets” and “Other Liabilities” for both comparative periods. “Property and Equipment” for the year ended December 31, 2019 was originally presented on a standalone basis in our December 31, 2019 Annual Report, and is now included within “Other Liabilities”. |
|
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, 2020 and 2019:
|
|
Year Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
|
(in thousands) |
|
Beginning balance of unrecognized tax benefits |
|
$ |
286,605 |
|
|
$ |
251,808 |
|
Additions for current year tax positions |
|
|
56,226 |
|
|
|
40,221 |
|
Additions for prior year tax positions |
|
|
3,218 |
|
|
|
1,977 |
|
Reductions for prior year tax positions |
|
|
(712 |
) |
|
|
(7,425 |
) |
Changes due to lapse of statute of limitations |
|
|
(570 |
) |
|
|
— |
|
Changes due to foreign currency translation adjustments |
|
|
204 |
|
|
|
24 |
|
Ending balance of unrecognized tax benefits (excluding interest and penalties) |
|
$ |
344,971 |
|
|
$ |
286,605 |
|
Interest and penalties associated with unrecognized tax benefits |
|
|
357 |
|
|
|
200 |
|
Ending balance of unrecognized tax benefits (including interest and penalties) |
|
$ |
345,328 |
|
|
$ |
286,805 |
|
|