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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of the provision for income taxes for the periods indicated are as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
United States | $ | (1,600,323) |  |  | $ | (1,072,489) |  |  | $ | (1,804,623) |
Foreign | 21,684 |  |  | 21,570 |  |  | 7,232 |
Loss before income taxes | $ | (1,578,639) |  |  | $ | (1,050,919) |  |  | $ | (1,797,391) |
The provision for income taxes for the periods indicated are as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Current provision |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | 1,256 |  |  | 1,272 |  |  | 1,201 |
Foreign | 4,240 |  |  | 7,228 |  |  | 1,156 |
Total current | $ | 5,496 |  |  | $ | 8,500 |  |  | $ | 2,357 |
Deferred provision |  |  |  |  |
Federal | 481 |  |  | 639 |  |  | (36,375) |
State | 1,256 |  |  | — |  |  | (9,534) |
Foreign | (1,361) |  |  | 2,086 |  |  | (982) |
Total deferred | 376 |  |  | 2,725 |  |  | (46,891) |
Total provision for (benefit from) income taxes | $ | 5,872 |  |  | $ | 11,225 |  |  | $ | (44,534) |
A reconciliation of the U.S. federal statutory income tax rates to the Company’s effective tax rate is as follows:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Provision at federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State, net of federal benefit | 2.1 |  |  | 2.6 |  |  | 3.2 |
Permanent tax adjustments | (0.4) |  |  | (0.2) |  |  | (0.4) |
Nondeductible expenses | (0.7) |  |  | (1.1) |  |  | (0.6) |
Stock-based compensation | (4.9) |  |  | 2.5 |  |  | 1.0 |
Convertible senior notes | — |  |  | — |  |  | 2.7 |
Change in valuation allowance | (17.1) |  |  | (25.2) |  |  | (24.0) |
Other adjustments | (0.4) |  |  | (0.7) |  |  | (0.3) |
Provision for income taxes | (0.4) | % |  | (1.1) | % |  | 2.6 | %
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes at the enacted rates. The significant components of the Company’s deferred tax assets and liabilities as of the periods indicated were as follows (in thousands):
| December 31,
| 2022 |  | 2021
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 2,127,233 |  |  | $ | 2,079,896 |
Insurance reserves and accruals | 296,423 |  |  | 276,625 |
Stock-based compensation | 19,132 |  |  | 38,066 |
Capitalized research expenses | 163,370 |  |  | — |
Accrued legal settlement/fees | 114,963 |  |  | 89,680 |
Lease liability | 55,579 |  |  | 66,211 |
Accrued and other liabilities | 76,311 |  |  | 64,555 |
Total deferred tax assets | 2,853,011 |  |  | 2,615,033 |
Less: Valuation allowance | (2,706,982) |  |  | (2,408,647) |
Deferred tax assets, net of valuation allowance | 146,029 |  |  | 206,386 |
Deferred tax liabilities: |  |  |
State income taxes | (124,982) |  |  | (115,768) |
Operating lease right of use assets | (36,379) |  |  | (59,838) |
Convertible senior notes | — |  |  | (31,892) |
Total deferred tax liabilities | (161,361) |  |  | (207,498) |
Net deferred tax assets (liabilities) | $ | (15,332) |  |  | $ | (1,112) |
A reconciliation of the valuation allowance is as follows (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Beginning balance | $ | 2,408,647 |  |  | $ | 2,144,548 |  |  | $ | 1,751,118 |
Net changes in deferred tax assets and liabilities | 298,335 |  |  | 264,099 |  |  | 393,430 |
Ending balance | $ | 2,706,982 |  |  | $ | 2,408,647 |  |  | $ | 2,144,548 |
The valuation allowance increased by $298.3 million for the year ended December 31, 2022, compared to the increase of $264.1 million for the year ended December 31, 2021. The Company believes that, based on a number of factors, the available objective evidence creates sufficient uncertainty regarding the realizability of the deferred tax assets such that a valuation allowance has been recorded. These factors include the Company’s history of net losses since its inception. As of December 31, 2022, the Company had U.S. federal and state net operating loss carryforwards of approximately $7.8 billion and $6.7 billion, respectively. The federal net operating loss carryforwards generated through December 31, 2017 expire at various dates beginning in 2030 and will continue to expire through 2037, while federal net operating loss carryforwards generated in 2018 or later do not expire. The state net operating loss carryovers will begin to expire in 2023 and will continue to expire at various times depending upon individual state carryforward rules. Utilization of the net operating loss carryforwards are subject to various limitations including the ownership change limitations provided by Internal Revenue Code (IRC) Section 382 and similar state provisions. The Company is subject to taxation in the United States and various foreign jurisdictions. All net operating losses generated to date are subject to adjustment for U.S. federal and state income tax purposes. Additionally, all tax years remain open to examination as of December 31, 2022 with the exception of tax years beginning before 2018 in Canada and 2021 in the United Kingdom. The Company has not provided foreign withholding taxes on the undistributed earnings of its foreign subsidiaries as of December 31, 2022, 2021, and 2020, because it intends to permanently reinvest such earnings outside of the U.S. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability will be immaterial, due to the participation exemption put in place by the 2017 Tax Act. The Company’s policy is to recognize interest and penalties associated with uncertain tax benefits as part of the income tax provision and include accrued interest and penalties with the related income tax liability on the Company’s consolidated balance sheets. To date, the Company has not recognized any interest and penalties in its consolidated statements of operations, nor has it accrued for or made payments for interest and penalties. The Company has no material unrecognized tax benefits as of December 31, 2022, 2021 and 2020.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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