Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of (Loss) Income Before Income Taxes

U.S. and international components of (loss) income before income taxes (in thousands) were comprised of the following for the periods indicated:

	Years Ended December 31,
	2021			2020			2019
U.S.	$	(854,610	)	$	(53,250	)	$	9,944
Foreign		43,221			33,297			28,319
Total	$	(811,389	)	$	(19,953	)	$	38,263

Schedule of (Benefit from) Provision for Income Taxes

The (benefit from) provision for income taxes (in thousands) consisted of the following for the periods indicated:

	Years Ended December 31,
	2021			2020			2019
Current:
Federal	$	(4,622	)	$	1,861		$	1,256
State		2,184			1,445			143
Foreign		5,533			5,221			5,135
	$	3,095		$	8,527		$	6,534
Deferred:
Federal	$	(204,784	)	$	(15,038	)	$	(749	)
State		(74,796	)		(6,269	)		(480	)
Foreign		576			351			(1,397	)
	$	(279,004	)	$	(20,956	)	$	(2,626	)
Total (benefit) provision	$	(275,909	)	$	(12,429	)	$	3,908

Schedule of Effective Income Tax Rate Reconciliation

The benefit from or provision for income taxes differs from the amount computed by applying the federal statutory income tax rate to the Company’s loss or income before income taxes as follows for the periods indicated:

	Years Ended December 31,
	2021			2020			2019
Income tax expense at federal statutory rate		21.0	%		21.0	%		21.0	%
State taxes, net of federal tax effect		9.1	%		18.0	%		(1.7	)%
Foreign earnings taxed at different rates		0.4	%		21.7	%		(6.1	)%
Book tax difference in amortization of intangible property		0.0	%		0.0	%		(4.6	)%
Withholding tax		(0.1	)%		(12.5	)%		3.1	%
Foreign tax credit		0.4	%		3.8	%		(3.0	)%
Other international components		0.0	%		(3.5	)%		0.2	%
Change in valuation allowance		0.0	%		2.7	%		1.6	%
Deferred tax adjustments and rate changes		0.0	%		(3.4	)%		1.0	%
Meals and entertainment		0.0	%		(1.3	)%		1.3	%
Non-deductible officers compensation		(1.0	)%		(12.5	)%		1.4	%
Subpart F income		(0.1	)%		(2.0	)%		3.2	%
Research and development tax credit		0.8	%		19.9	%		(9.3	)%
Share-based compensation		4.0	%		11.8	%		1.8	%
Global Intangible Low Income, net of foreign tax credit		(0.5	)%		(1.1	)%		0.9	%
Foreign-derived intangible income		0.0	%		3.1	%		(1.9	)%
Other permanent differences		0.0	%		(3.4	)%		1.3	%
Total		34.0	%		62.3	%		10.2	%

Schedule of Effective Tax Rate for (Loss) Income Before Income Taxes

The Company’s U.S. and foreign effective tax rates for (loss) income before income taxes were as follows for the periods indicated:

	Years Ended December 31,
	2021			2020			2019
U.S.		33.0	%		33.8	%		1.7	%
Foreign		14.1	%		16.7	%		13.2	%
Combined		34.0	%		62.3	%		10.2	%

Schedule of Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows for the periods indicated:

	December 31,
	2021			2020
Deferred tax assets, net:
Net operating loss carryforwards	$	968		$	1,690
Tax credits		3,844			4,158
Intangible assets		20,963			1,707
Deferred revenue		13,954			408
Accrued compensation		6,290			6,527
Share-based compensation expense		15,493			11,410
Digital asset impairment losses		258,458			19,843
Disallowed interest		5,532			0
Other		1,889			3,605
Deferred tax assets before valuation allowance		327,391			49,348
Valuation allowance		(999	)		(1,259	)
Deferred tax assets, net of valuation allowance		326,392			48,089
Deferred tax liabilities:
Prepaid expenses and other		2,101			1,792
Property and equipment		2,936			4,233
Debt discount, net of issuance costs		0			41,693
Deferred tax on undistributed foreign earnings		1,682			1,741
Method change		0			338
Total deferred tax liabilities		6,719			49,797
Total net deferred tax asset (liability)	$	319,673		$	(1,708	)
Reported as:
Non-current deferred tax assets, net		319,782			6,503
Non-current deferred tax liabilities		(109	)		(8,211	)
Total net deferred tax asset (liability)	$	319,673		$	(1,708	)

Schedule of Change In Unrecognized Tax Benefits

The change in unrecognized income tax benefits (in thousands) is presented in the table below:

Unrecognized income tax benefits at January 1, 2021	$	4,293
Increase related to positions taken in prior period		1,082
Increase related to positions taken in current period		1,146
Decrease related to expiration of statute of limitations		(561	)
Unrecognized income tax benefits at December 31, 2021		5,960
Accrued interest		272
Gross unrecognized income tax benefits at December 31, 2021	$	6,232