Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of components of income (loss) before provision for (benefit from) income taxes

The components of income (loss) before provision for (benefit from) income taxes during the three years ended December 31, 2019 consisted of the following:



	2019		2018			2017
	(in thousands)
United States	$	1,263,379	$	812,086		$	330,340
Foreign	131,540		(211,845		)	(346,029		)
Income (loss) before provision for (benefit from) income taxes	$	1,394,919	$	600,241		$	(15,689	)

Schedule of components of provision for (benefit from) income taxes

The components of the provision for (benefit from) income taxes during the three years ended December 31, 2019 consisted of the following:



	2019			2018			2017
	(in thousands)
Current taxes:
Federal	$	—		$	772		$	11,559
Foreign	37,194			15,600			3,576
State	13,528			9,018			5,025
Total current taxes	50,722			25,390			20,160
Deferred taxes:
Federal	184,312			(1,105,053		)	(113,805		)
Foreign	(24,797		)	(364,919		)	(3,222		)
State	7,872			(42,280		)	(10,457		)
Total deferred taxes	167,387			(1,512,252		)	(127,484		)
Provision for (benefit from) income taxes	$	218,109		$	(1,486,862	)	$	(107,324	)

Reconciliation of the provision for (benefit from) income taxes

A reconciliation of the provision for (benefit from) income taxes as computed by applying the U.S. federal statutory rate of 21% for the years ended December 31, 2019 and 2018 and 35% for the year ended December 31, 2017 to the provision for (benefit from) income taxes is as follows:



	2019			2018			2017
	(in thousands)
Income (loss) before provision for (benefit from) income taxes	$	1,394,919		$	600,241		$	(15,689	)

Expected provision for (benefit from) income taxes	292,933			126,051			(5,491		)
State taxes, net of federal benefit	8,478			8,680			4,742
Foreign income tax rate differential	6,178			23,427			77,801
Tax credits	(59,459		)	(52,629		)	(58,204		)
Benefit from income taxes attributable to valuation allowances	(2,672		)	(1,563,169		)	(575,801		)
Permanent items	4,822			1,421			15,324
Tax rate change	—			—			575,192
Stock compensation (benefit) shortfalls and cancellations	(56,324		)	(49,044		)	(21,453		)
Officer’s compensation	10,666			8,310			6,501
Deconsolidation of VIE	—			(9,390		)	(126,183		)
Uncertain tax positions	14,070			15,431			—
Other	(583		)	4,050			248
Provision for (benefit from) income taxes	$	218,109		$	(1,486,862	)	$	(107,324	)

Schedule of deferred tax assets and liabilities

The components of the deferred taxes were as follows:



	As of December 31,
	2019			2018
	(in thousands)
Deferred tax assets:
Net operating loss	$	512,256		$	882,014
Tax credit carryforwards	549,543			487,635
Intangible assets	275,290			241,775
Deferred revenues	18,833			19,311
Stock-based compensation	85,199			93,915
Accrued expenses	44,367			17,795
Finance lease liabilities	119,160			130,849
Operating lease assets	13,114			—
Other	8,596			6,831
Gross deferred tax assets	1,626,358			1,880,125
Valuation allowance	(205,192		)	(168,491		)
Total deferred tax assets	1,421,166			1,711,634
Deferred tax liabilities:
Property and equipment	(101,235		)	(128,407		)
Acquired intangibles	(87,160		)	—
Deferred revenue	—			(73,357		)
Unrealized gain	(28,838		)	(10,198		)
Operating lease liabilities	(13,118		)	—
Net deferred tax assets	$	1,190,815		$	1,499,672

Summary of income tax contingencies

Unrecognized tax benefits during the three years ended December 31, 2019 were as follows:



	2019			2018		2017
	(in thousands)
Balance at beginning of the period	$	19,549		$	3,814	$	—
Increases related to current period tax positions	14,407			9,704		3,814
Increases related to prior period tax positions	598			6,031		—
Decreases related to prior period tax positions	(156		)	—		—
Settlement with Tax Authorities	(478		)	—		—
Balance at end of period	$	33,920		$	19,549	$	3,814