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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income (loss) from operations before income taxes The provision (benefit) for income taxes is based on income (loss) before provision (benefit) for income taxes as follows (in thousands):
Year Ended December 31,
202220212020
U.S.$766,781 $991,873 $(16,609)
Non-U.S.(237,665)(421,429)(215,609)
Income (loss) before provision (benefit) for income taxes$529,116 $570,444 $(232,218)
Schedule of (benefit) provision for income taxes
Our provision (benefit) for income taxes consists of the following (in thousands):
Year Ended December 31,
202220212020
Current:
Federal$90,088$50,565$43,595
State38,13632,50518,881
Foreign3,1414,3971,353
131,36587,46763,829
Deferred:
Federal62,107 (407,852)
State(3,709)(57,677)— 
Foreign(1,307)(75)(350)
57,091 (465,604)(350)
Total provision (benefit) for income taxes$188,456 $(378,137)$63,479 
Schedule of reconciliation of income taxes at the U.S. federal statutory rate to the (benefit) provision for income taxes
A reconciliation of income taxes at the U.S. federal statutory rate to the provision (benefit) for income taxes is as follows (in thousands):
Year Ended December 31,
202220212020
Provision (benefit) at U.S. federal statutory rate$111,114$119,793 $(48,766)
State and local income taxes26,76734,461 (21,637)
Foreign tax rate differential13,67055,17130,839
Income tax credits(30,505)(55,139)(38,221)
Change in valuation allowance67,056 (523,279)158,815 
Foreign-derived intangible income(36,748)(28,259)(22,830)
Stock based compensation19,70415,4972,802 
Acquisitions accounted for as research and development expenses14,700— 
Other2,6983,6182,477
Provision (benefit) for income taxes$188,456 $(378,137)$63,479
Schedule of significant components of deferred tax assets and liabilities
Significant components of our deferred tax assets and liabilities are as follows (in thousands):
December 31,
20222021
Deferred tax assets:
Net operating loss carry forwards$182,193 $137,935 
Federal and state research credits17,141 206,184 
Capitalized research and development265,140 59,247 
Deferred revenue and accruals72,657 42,326 
Non-cash compensation83,138 83,002 
Acquisition-related contingent consideration30,483 31,450 
Intangibles, net257,614 305,228 
Long term investments54,662 34,733 
Other9,600 15,991 
Total gross deferred tax assets972,628 916,096 
Less valuation allowance for deferred tax assets(472,125)(408,180)
Net deferred tax assets$500,503 $507,916 
Deferred tax liabilities:
Property and equipment$(33,683)$(33,259)
Other(8,879)(7,119)
Total gross deferred tax liabilities(42,562)(40,378)
Net deferred tax assets$457,941 $467,538 
Summary of Operating Loss Carryforwards
As of December 31, 2022, we had NOL carryforwards, research and development credit carryforwards and orphan drug tax credit carryforwards as follows (in thousands):
AmountExpiring if not utilized
Net operating loss carryforwards
State$257,8062023 through 2041; indefinite
Foreign1,692,2832023 through 2029
Research and development credit carryforwards
State20,7732024 through 2042; indefinite
Orphan drug tax credit carryforwards14,6412042
Unrecognized tax benefits The following table summarizes the gross amounts of unrecognized tax benefits (in thousands):
Year Ended December 31,
20222021
Balance at beginning of year$62,359$31,597
Additions related to prior periods tax positions5,02728,488
Reductions related to prior periods tax positions(2,087)(311)
Additions related to current period tax positions8,2903,042
Settlements(104)(95)
Reductions due to lapse of applicable statute of limitations(356)(288)
Currency translation adjustment(89)(74)
Balance at end of year$73,040$62,359