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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income before provision for income taxes was as follows:


	Year Ended December 31,
	2023		2022		2021
	(in thousands)
United States	$	5,602,762	$	4,623,218	$	5,349,749
Foreign	602,643		640,711		490,354
Income before income taxes	$	6,205,405	$	5,263,929	$	5,840,103

Schedule of Components of Provision for Income Taxes

The components of provision for income taxes for all periods presented were as follows:


	Year Ended December 31,
	2023		2022		2021
	(in thousands)
Current tax provision:
Federal	$	854,170	$	109,910	$	57,526
State	181,684		119,795		109,641
Foreign	304,539		676,827		357,189
Total current	1,340,393		906,532		524,356
Deferred tax provision:
Federal	(412,760)		(52,434)		188,937
State	(55,475)		(30,691)		(2,700)
Foreign	(74,743)		(51,402)		13,282
Total deferred	(542,978)		(134,527)		199,519
Provision for income taxes	$	797,415	$	772,005	$	723,875

Schedule of Reconciliation of Provision for Income Taxes

A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory Federal income tax rate to income before income taxes is as follows:


	Year Ended December 31,
	2023			2022			2021
	(in thousands)
Expected tax expense at U.S. Federal statutory tax rate	$	1,303,123		$	1,105,428		$	1,226,422
State income taxes, net of Federal income tax effect	104,717			92,084			111,400
Foreign earnings at other than U.S. rates	(32,292)			104,665			(86,489)
Research and development tax credit	(87,036)			(146,615)			(82,909)
Excess tax benefits on stock-based compensation	(119,043)			(75,211)			(290,899)
Foreign-derived intangible income deduction	(426,597)			(361,013)			(192,238)
Nontaxable and nondeductible items	41,782			44,046			37,144
Other	12,761			8,621			1,444
Provision for income taxes	$	797,415		$	772,005		$	723,875
Effective Tax Rate	13		%	15		%	12		%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows:


	As of December 31,
	2023		2022
	(in thousands)
Deferred tax assets:
Stock-based compensation	$	486,876	$	443,456
Tax credits and net operating loss carryforwards	544,431		409,411
Capitalized research expenses	593,439		323,998
Accruals and reserves	137,251		119,732
Operating lease liabilities	516,574		551,418
Unrealized losses	62,213		—
Other	11,615		2,234
Total deferred tax assets	2,352,399		1,850,249
Valuation allowance	(442,293)		(343,342)
Net deferred tax assets	1,910,106		1,506,907
Deferred tax liabilities:
Depreciation & amortization	(357,477)		(456,717)
Operating right-of-use lease assets	(435,216)		(473,928)
Unrealized gains	—		(47,283)
Acquired intangibles	(233,433)		(267,438)
Other	(9,430)		—
Total deferred tax liabilities	(1,035,556)		(1,245,366)
Net deferred tax assets	$	874,550	$	261,541

The following table shows the deferred tax assets and liabilities within our Consolidated Balance Sheets:


	As of December 31,
	2023		2022
	(in thousands)
Total deferred tax assets:
Other non-current assets	$	1,000,760	$	261,541
Total deferred tax liabilities:
Other non-current liabilities	(126,210)		—
Net deferred tax assets	$	874,550	$	261,541

Schedule of Changes in Unrecognized Tax Benefits

The aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows:


	As of December 31,
	2023		2022		2021
	(in thousands)
Balance at the beginning of the year	$	226,977	$	202,557	$	140,124
Increases related to tax positions taken during the current period	65,630		26,865		35,317
Increases related to tax positions taken during prior periods	76,794		—		27,116
Decreases related to tax positions taken during prior periods	(10,117)		(2,445)		—
Decreases related to settlements with taxing authorities	(32,179)		—		—
Decreases related to expiration of statute of limitations	—		—		—
Balance at the end of the year	$	327,105	$	226,977	$	202,557