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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of income (loss) before income taxes were as follows (in millions):
 
Year Ended December 31,
 202120222023
United States$(461)$(991)$259 
Foreign(2)(408)(793)
Loss before income taxes$(463)$(1,399)$(534)
The components of provision for (benefit from) income taxes were as follows (in millions):
Year Ended December 31,
202120222023
Current
Federal$— $— $6 
State3 — 9 
Foreign1 4 17 
Total
$4 $4 $32 
Deferred
Federal1 — 1 
State1 1 — 
Foreign(1)(36)(2)
Total
1 (35)(1)
Total provision for (benefit from) income taxes$5 $(31)$31 
The items accounting for differences between income taxes computed at the federal statutory rate and the provision (benefit) recorded for income taxes were as follows (in millions):
Year Ended December 31,
202120222023
Income taxes computed at the federal statutory rate$(97)$(294)$(112)
State taxes, net of federal benefits3 — 7 
Tax impact of foreign earnings and losses 1 55 181 
Change in valuation allowance839 179 47 
Stock-based compensation(597)6 (59)
Research and development credits(150)22 (44)
Non-deductible expenses6 14 9 
Other— (13)2 
Provision for (benefit from) income taxes$5 $(31)$31 
The components of deferred tax assets and liabilities were as follows (in millions):
December 31,
20222023
Deferred tax assets
Net operating losses$660 $697 
Tax credits 209 245 
Capitalized research and development619 691 
Stock-based compensation74 43 
Lease liabilities115 122 
Accruals and reserves132 234 
Other 88 103 
Total gross deferred tax assets1,897 2,135 
Less: Valuation allowance(1,655)(1,858)
Total deferred tax assets net of valuation allowance242 277 
Deferred tax liabilities
Property and equipment and intangible assets(134)(144)
Lease assets (94)(98)
Deferred contract costs(17)(38)
Total gross deferred tax liabilities(245)(280)
Net deferred tax liabilities$(3)$(3)
Due to the weight of objectively verifiable negative evidence, including its history of losses, the Company’s deferred tax assets have been fully offset by a valuation allowance, with the exception of certain foreign jurisdictions. Overall, the
valuation allowance increased by $1.0 billion, $257 million, and $203 million in the years ended December 31, 2021, 2022, and 2023, respectively.
As of December 31, 2023, the Company had accumulated U.S. federal and state net operating loss carryforwards of $1.7 billion and $1.2 billion, respectively. Federal net operating losses carry forward indefinitely. Of the $1.2 billion of state net operating losses, $191 million is carried forward indefinitely. The remaining state net operating loss carryforwards will begin to expire in 2024. As of December 31, 2023, the Company had foreign net operating loss carryforwards of $1.3 billion that begin to expire in 2025.
The Company also had $278 million and $146 million of federal and state research and development tax credit carryforwards, respectively, as of December 31, 2023. The federal research and development tax credits expire in varying amounts starting in 2033. The California research credits do not expire and may be carried forward indefinitely.
The Company’s ability to utilize the net operating loss and tax credit carryforwards in the future may be limited in the event of past or future ownership changes as defined in Section 382 and 383 of the Internal Revenue Code of 1986, as amended, and similar state tax law. Based on the most recent analysis, the Company does not anticipate a current limitation on the tax attributes under Section 382 and 383.
The Company intends to invest substantially all of its foreign subsidiary earnings, as well as its capital in its foreign subsidiaries, indefinitely in those jurisdictions in which the Company could incur significant, additional costs upon repatriation of such amounts.

Unrecognized Tax Benefits
A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is included in the table below (in millions):
Year Ended December 31,
202120222023
Unrecognized tax benefits at beginning of year$7 $69 $69 
Increases related to current year tax positions62 19 47 
Increases related to prior year tax positions— — 67 
Decreases related to prior year tax positions— (19)— 
Unrecognized tax benefits at end of year$69 $69 $183 
The Company had $183 million of gross unrecognized tax benefits as of December 31, 2023, the majority of which would not impact its effective tax rate if recognized due to the Company's valuation allowance. The Company does not anticipate that the amount of unrecognized tax benefits relating to tax positions existing at December 31, 2023 will significantly increase or decrease within the next 12 months.
The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits within provision for (benefit from) income taxes, which were immaterial for the periods presented.
The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. The material jurisdictions in which the Company operates include the United States and Finland. The Company’s 2013 and subsequent tax years remain open to examination by the U.S. Internal Revenue Service. The Company’s 2017 and subsequent tax years remain open to examination in Finland.