Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2022 |
Income Tax Disclosure [Abstract] |
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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, | | 2022 | | 2021 | | 2020 | 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) | |
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Schedule of (benefit) provision for income taxes |
Our provision (benefit) for income taxes consists of the following (in thousands): | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2022 | | 2021 | | 2020 | Current: | | | | | | Federal | $ | 90,088 | | $ | 50,565 | | $ | 43,595 | State | 38,136 | | 32,505 | | 18,881 | Foreign | 3,141 | | 4,397 | | 1,353 | | 131,365 | | 87,467 | | 63,829 | Deferred: | | | | | | Federal | 62,107 | | | (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 | |
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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, | | 2022 | | 2021 | | 2020 | Provision (benefit) at U.S. federal statutory rate | $ | 111,114 | | $ | 119,793 | | | $ | (48,766) | State and local income taxes | 26,767 | | 34,461 | | | (21,637) | Foreign tax rate differential | 13,670 | | 55,171 | | 30,839 | Income tax credits | (30,505) | | | (55,139) | | | (38,221) | | Change in valuation allowance | 67,056 | | | (523,279) | | 158,815 | | Foreign-derived intangible income | (36,748) | | | (28,259) | | | (22,830) | | Stock based compensation | 19,704 | | 15,497 | | 2,802 | | Acquisitions accounted for as research and development expenses | 14,700 | | — | | — | | Other | 2,698 | | 3,618 | | 2,477 | Provision (benefit) for income taxes | $ | 188,456 | | | $ | (378,137) | | $ | 63,479 |
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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, | | 2022 | | 2021 | Deferred tax assets: | | | | Net operating loss carry forwards | $ | 182,193 | | | $ | 137,935 | | Federal and state research credits | 17,141 | | | 206,184 | | Capitalized research and development | 265,140 | | | 59,247 | | Deferred revenue and accruals | 72,657 | | | 42,326 | | Non-cash compensation | 83,138 | | | 83,002 | | Acquisition-related contingent consideration | 30,483 | | | 31,450 | | Intangibles, net | 257,614 | | | 305,228 | | Long term investments | 54,662 | | | 34,733 | | Other | 9,600 | | | 15,991 | | Total gross deferred tax assets | 972,628 | | | 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 | |
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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): | | | | | | | | | | | | | Amount | | Expiring if not utilized | Net operating loss carryforwards | | | | State | $ | 257,806 | | 2023 through 2041; indefinite | Foreign | 1,692,283 | | 2023 through 2029 | Research and development credit carryforwards | | | | State | 20,773 | | 2024 through 2042; indefinite | Orphan drug tax credit carryforwards | 14,641 | | 2042 |
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Unrecognized tax benefits |
The following table summarizes the gross amounts of unrecognized tax benefits (in thousands): | | | | | | | | | | | | | Year Ended December 31, | | 2022 | | 2021 | Balance at beginning of year | $ | 62,359 | | $ | 31,597 | Additions related to prior periods tax positions | 5,027 | | 28,488 | Reductions related to prior periods tax positions | (2,087) | | | (311) | | Additions related to current period tax positions | 8,290 | | 3,042 | 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 |
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