XML 34 R24.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | 15. Income Taxes The components of loss before income taxes are as follows (in thousands):
|  | Years Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Domestic |  | $ | (328,475 | ) |  | $ | (307,056 | ) |  | $ | (268,499 | )
Foreign |  |  | 41,608 |  |  |  | 12,187 |  |  |  | (22,184 | )
Loss before provision for income taxes |  | $ | (286,867 | ) |  | $ | (294,869 | ) |  | $ | (290,683 | )
The provision for income taxes consists of the following (in thousands):
|  | Years Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | — |
State |  |  | — |  |  |  | — |  |  |  | — |
Foreign |  |  | 3 |  |  |  | 358 |  |  |  | 347 |
Total current |  |  | 3 |  |  |  | 358 |  |  |  | 347 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | — |  |  |  | — |  |  |  | — |
State |  |  | — |  |  |  | — |  |  |  | — |
Foreign |  |  | — |  |  |  | — |  |  |  | — |
Total deferred |  |  | — |  |  |  | — |  |  |  | — |
Total provision for income taxes |  | $ | 3 |  |  | $ | 358 |  |  | $ | 347 |
The following is the reconciliation between the statutory federal income tax rate and the Company’s effective tax rate:
| Years Ended December 31, |
| 2023 |  |  | 2022 |  |  | 2021 |
Tax at statutory federal rate |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State tax |  | — | % |  |  | — | % |  |  | — | %
Stock-based compensation expense |  | (1.1 | )% |  |  | (2.5 | )% |  |  | (1.8 | )%
Net operating losses not benefitted |  | (17.9 | )% |  |  | (16.3 | )% |  |  | (16.8 | )%
Foreign net operating losses not benefitted |  | 3.0 | % |  |  | 0.9 | % |  |  | (1.6 | )%
Deduction limitation on executive compensation |  | (0.5 | )% |  |  | (0.2 | )% |  |  | (0.3 | )%
Global intangible low-taxed income |  | (4.3 | )% |  |  | (2.8 | )% |  |  | (0.4 | )%
Other |  | (0.2 | )% |  |  | (0.2 | )% |  |  | (0.2 | )%
Total |  | — | % |  |  | (0.1 | )% |  |  | (0.1 | )%
Significant components of the Company’s deferred tax assets are as follows (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Federal and state net operating loss carryforwards |  | $ | 175,257 |  |  | $ | 166,708 |
Tax credit carryforwards |  |  | 123,156 |  |  |  | 106,131 |
Foreign net operating loss carryforwards |  |  | 48,396 |  |  |  | 49,990 |
Capitalized research and development expenses |  |  | 81,697 |  |  |  | 45,125 |
Stock-based compensation |  |  | 9,155 |  |  |  | 8,616 |
Lease obligations |  |  | 17,189 |  |  |  | 18,442 |
Reserves and accruals |  |  | 5,475 |  |  |  | 4,929 |
Deferred revenue |  |  | 24,792 |  |  |  | 21,624 |
Intangible assets |  |  | 63,146 |  |  |  | 69,159 |
Other |  |  | 698 |  |  |  | 1,277 |
Subtotal |  |  | 548,961 |  |  |  | 492,001 |
Less: Valuation allowance |  |  | (534,967 | ) |  |  | (477,969 | )
Net deferred tax assets |  |  | 13,994 |  |  |  | 14,032 |
Fixed assets |  |  | (10,511 | ) |  |  | (13,101 | )
Non-deductible accrued expenses |  |  | (3,483 | ) |  |  | (931 | )
Net deferred tax liabilities |  |  | (13,994 | ) |  |  | (14,032 | )
Total net deferred tax assets |  | $ | — |  |  | $ | — |
A valuation allowance has been provided to reduce the deferred tax assets to an amount management believes is more likely than not to be realized. Expected realization of the deferred tax assets for which a valuation allowance has not been recognized is based on upon the reversal of existing temporary differences and future taxable income. The valuation allowance increased by $57.0 million, $68.2 million and $72.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Due to uncertainty surrounding the realization of the favorable tax attributes in the future tax returns, the Company has established a valuation allowance against its otherwise recognizable net deferred tax assets. The Company intends to continue maintaining a full valuation allowance on its deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of this allowance. At December 31, 2023, the Company had net operating loss carryforwards available to offset future taxable income of approximately $796.7 million and $147.2 million for federal and state tax purposes, respectively. $292.4 million of the federal net operating loss carryforwards will begin to expire in 2026 if not utilized, while the remainder can be carried forward indefinitely. The state net operating loss carryforward will begin to expire in 2028 if not utilized. The Company also had foreign net operating loss carryforwards of approximately $235.1 million, which expire between 2024 and 2033 if not utilized. At December 31, 2023, the Company had approximately $143.3 million of federal and $50.8 million of California research and development tax credit and other tax credit carryforwards available to offset future taxable income. The federal credits begin to expire in 2024 and the California research credits have no expiration dates. Federal and state tax laws impose substantial restrictions on the utilization of net operating loss and credit carryforwards in the event of an “ownership change” for tax purposes, as defined in IRC Section 382. The Company did not perform an IRC Section 382 analysis and any previous ownership changes may result in a limitation that will reduce the total amount of net operating loss and tax credit carryforwards disclosed that can be utilized. Subsequent ownership changes may affect the limitation in future years. On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law. Among other changes to the Internal Revenue Code, the IRA imposes a 15% corporate alternative minimum tax on certain corporations and 1% excise tax on public company stock buybacks for tax years beginning after December 31, 2022. The tax provisions in the IRA did not have a material impact on the Company’s consolidated financial statements and related disclosures. Uncertain Tax Positions The Company had unrecognized tax benefits of approximately $81.0 million as of December 31, 2023. Approximately $0.6 million of unrecognized tax benefits, if recognized, would affect the effective tax rate. The interest accrued as of December 31, 2023 and 2022 was immaterial. A reconciliation of the beginning and ending amounts of unrecognized income tax benefits during the three years ended December 31, 2023 is as follows (in thousands):
|  | Federal and State |
Balance as of December 31, 2020 |  | $ | 48,574 |
Decrease due to prior positions |  |  | (245 | )
Increase due to current year position |  |  | 8,415 |
Foreign exchange rate differential |  |  | 927 |
Balance as of December 31, 2021 |  |  | 57,671 |
Increase due to prior positions |  |  | 6,954 |
Increase due to current year position |  |  | 9,074 |
Foreign exchange rate differential |  |  | (908 | )
Balance as of December 31, 2022 |  |  | 72,791 |
Decrease due to prior positions |  |  | (154 | )
Increase due to current year position |  |  | 8,805 |
Foreign exchange rate differential |  |  | (477 | )
Balance as of December 31, 2023 |  | $ | 80,965 |
Unrecognized tax benefits may change during the next twelve months for items that arise in the ordinary course of business. The Company does not anticipate a material change to its unrecognized tax benefits over the next twelve months that would affect the Company’s effective tax rate. The Company classifies interest and penalties as a component of tax expense, if any. The Company files income tax returns in the U.S. federal jurisdiction, U.S. state and other foreign jurisdictions. The U.S. federal and U.S. state taxing authorities may choose to audit tax returns for tax years beyond the statute of limitation period due to significant tax attribute carryforwards from prior years, making adjustments only to carryforward attributes. The foreign statute of limitation generally remains open from 2014 to 2023. The Company is not currently under audit in any tax jurisdiction.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration