INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

The domestic and foreign components of income (loss) before income taxes were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Domestic	$	(30,304)	$	(347,968)	$	417,356
Foreign	1,161		(217,349)		(259,894)
Income (loss) before income taxes	$	(29,143)	$	(565,317)	$	157,462

The components of the provision for income taxes were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Current:
Federal	$	12,003	$	14,352	$	201
State	14,351		17,504		3,186
Foreign	51,506		25,425		5,684
Total current provision for income taxes	77,860		57,281		9,071
Deferred:
Federal	(58,532)		(59,909)		(1,463)
State	(25,072)		(7,677)		(524)
Foreign	(2,275)		(2,007)		(8,448)
Total deferred benefit for income taxes	(85,879)		(69,593)		(10,435)
Total benefit for income taxes	$	(8,019)	$	(12,312)	$	(1,364)

The following is a reconciliation of the statutory federal income tax rate to the Company's effective tax rate:


	December 31,
	2023		2022		2021
Tax at federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	45.9		(1.1)		0.6
Foreign rate differential	(175.6)		(2.0)		10.4
Other non-deductible expenses	(21.7)		(1.2)		4.4
Credits	292.9		27.0		(83.9)
Other items	(2.2)		0.6		1.6
Change in valuation allowance	11.2		(46.7)		290.4
Share-based compensation	(16.1)		7.5		(275.0)
Change in uncertain tax positions	(27.4)		(1.5)		5.0
Income/loss inclusions of U.S. foreign subsidiaries	(216.5)		2.1		0.9
Non-deductible executive compensation	(9.2)		(0.3)		5.9
Non-deductible acquisition related costs	(15.0)		(3.0)		5.9
Foreign exchange gain/loss	174.1		(0.2)		—
Impairment loss	(60.8)		—		0.1
Return to provision adjustments	26.9		—		—
Intercompany transactions	—		—		3.8
Cancellation of debt income	—		—		8.0
Total	27.5	%	2.2	%	(0.9)	%

The tax effects of temporary differences and related deferred tax assets and liabilities were as follows (in thousands):


	December 31,
	2023		2022
Deferred tax assets:
Capitalized costs & research and development capitalization	$	552,731	$	474,766
Accrued expenses	173,556		129,695
Net operating loss carryforwards	935,289		1,172,880
Tax credit carryforwards	529,314		501,185
Share-based compensation	45,153		72,128
Other	61,489		6,199
Operating lease liability	85,154		109,176
Cryptocurrency investment	—		30,273
Deferred consideration	6,943		11,665
Convertible notes	33,952		52,915
Safeguarding liability related to bitcoin held for other parties	257,503		110,150
Total deferred tax assets	2,681,084		2,671,032
Valuation allowance	(2,001,438)		(2,100,383)
Total deferred tax assets, net of valuation allowance	679,646		570,649
Deferred tax liabilities:
Property, equipment and intangible assets	(332,512)		(452,658)

Unrealized gain on investments	(25,618)		(29,554)
Operating lease right-of-use asset	(60,600)		(96,894)
Safeguarding asset related to bitcoin held for other parties	(257,503)		(110,150)
Cryptocurrency investment	(29,711)		—
Total deferred tax liabilities	(705,944)		(689,256)
Net deferred tax liabilities	$	(26,298)	$	(118,607)

The change in the balance of unrecognized tax benefit was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Unrecognized tax benefit, beginning of the period	$	506,512	$	448,392	$	295,182
Gross increases and decreases related to prior period tax positions	(7,348)		5,431		6,552
Gross increases and decreases related to current period tax positions	(30,063)		30,988		124,238


Reductions related to lapse of statute of limitations	(3,998)		(2,950)		—
Gross increases related to acquisitions	—		24,651		22,420
Unrecognized tax benefit, end of the period	$	465,103	$	506,512	$	448,392