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Income Taxes (Tables) | 12 Months Ended
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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,
| 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) |
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 |
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
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 |
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
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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