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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Components of Income Tax (Benefit) Expense | The following table presents the components of our income tax expense (benefit) for the periods presented (in millions):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Current income tax expense |  |  |  |  |
State | $ | 2 |  |  | $ | 2 |  |  | $ | — |
Foreign | 1 |  |  | — |  |  | — |
Total current income tax expense | 3 |  |  | 2 |  |  | — |
Deferred income tax benefit: |  |  |  |  |
Federal | — |  |  | (3) |  |  | (7) |
State | — |  |  | — |  |  | (1) |
Total deferred income tax benefit | — |  |  | (3) |  |  | (8) |
Total income tax expense (benefit) | $ | 3 |  |  | $ | (1) |  |  | $ | (8) |
Reconciliation of Federal Statutory Rate and Effective Tax Rate | The following table presents a reconciliation of the federal statutory rate and our effective tax rate for the periods presented:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Tax expense at federal statutory rate | (21.0) | % |  | (21.0) | % |  | (21.0) | %
State income taxes, net of federal tax benefit | 6.2 |  |  | 8.7 |  |  | (364.0) |
Share-based compensation | 13.2 |  |  | 84.1 |  |  | (2,329.4) |
Non-deductible executive compensation | 14.3 |  |  | (7.7) |  |  | 86.9 |
Research and development credits | (25.7) |  |  | 40.8 |  |  | (393.0) |
Other | 8.2 |  |  | (4.9) |  |  | (23.2) |
Valuation allowance | 7.4 |  |  | (99.3) |  |  | 2,827.6 |
Effective tax rate | 2.6 | % |  | 0.7 | % |  | (216.1) | %
Deferred Tax Assets and Liabilities | The following table presents the significant components of our deferred tax assets and liabilities as of the dates presented (in millions):
| December 31,
| 2022 |  | 2021
Deferred tax assets: |  |  |
Federal and state net operating loss carryforwards | $ | 433 |  |  | $ | 524 |
Research and development credits | 164 |  |  | 133 |
Share-based compensation | 102 |  |  | 66 |
Capitalized research and development | 100 |  |  | — |
Lease liability | 43 |  |  | 41 |
Interest expense limitation | 28 |  |  | 58 |
Debt discount on convertible notes | 18 |  |  | — |
Accruals and reserves | 3 |  |  | 13 |
Depreciation and amortization | — |  |  | 1 |
Inventory | — |  |  | 69 |
Other deferred tax assets | 5 |  |  | 1 |
Total deferred tax assets | 896 |  |  | 906 |
Deferred tax liabilities: |  |  |
Right of use assets | (31) |  |  | (32) |
Intangible assets | (15) |  |  | (22) |
Goodwill | (5) |  |  | (5) |
Depreciation and amortization | (3) |  |  | — |
Debt discount on convertible notes | — |  |  | (60) |
Website and software development costs | — |  |  | (43) |
Total deferred tax liabilities | (54) |  |  | (162) |
Net deferred tax assets before valuation allowance | 842 |  |  | 744 |
Less: valuation allowance | (843) |  |  | (746) |
Net deferred tax liabilities | $ | (1) |  |  | $ | (2) |
Changes in Unrecognized Tax Benefits | Changes for unrecognized tax benefits for the periods presented are as follows (in millions):
Balance at January 1, 2020 | $ | 40 |
Gross increases—current period tax positions | 9 |
Balance at December 31, 2020 | $ | 49 |
Gross increases—current period tax positions | 17 |
Gross increases—prior period tax positions | 9 |
Balance at December 31, 2021 | $ | 75 |
Gross increases—current period tax positions | 17 |
Gross increases—prior period tax positions | 4 |
Gross decreases—prior period tax positions | (6) |
Balance at December 31, 2022 | $ | 90 |

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