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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our loss before income taxes consists of the following (in thousands):
 Year Ended December 31,
 202120202019
Domestic$(56,291)$(46,277)$(59,900)
International(7,369)(7,824)(6,805)
Loss before income taxes$(63,660)$(54,101)$(66,705)

Significant components of our benefit for income taxes are as follows (in thousands):
 Year Ended December 31,
 202120202019
Current:
Federal$— $— $— 
State(63)(31)(31)
Foreign167 (2,314)(568)
Total current tax (expense) benefit104 (2,345)(599)
Deferred:
State— — — 
Foreign4,319 3,426 2,514 
Total deferred benefit4,319 3,426 2,514 
Total benefit for income taxes$4,423 $1,081 $1,915 
Reconciliation of income taxes at the statutory rate to the benefit from income taxes recorded in the statements of operations is as follows:
 Year Ended December 31,
 202120202019
Tax benefit at federal statutory rate21.0 %21.0 %21.0 %
State tax expense, net of federal benefit2.8 1.7 0.9 
Foreign tax benefit (expense)4.7 (0.9)(0.1)
Change in valuation allowance(15.5)(11.4)(6.0)
Federal research and development credit0.7 1.1 0.7 
Unrecognized tax benefit(0.1)(0.1)(0.1)
Non-deductible interest/premium(1.0)(1.1)(7.9)
Global Intangible Low-Tax Income (GILTI)— (3.9)(5.6)
Net operating loss expiration(2.9)(3.3)— 
Executive stock-based compensation(1.3)— — 
Other, net(1.5)(1.1)— 
Effective tax rate6.9 %2.0 %2.9 %

At December 31, 2017, we changed our permanent reinvestment assertion and will not permanently reinvest our foreign earnings outside the United States. The cash generated from some of our foreign subsidiaries may be used domestically to fund operations. Any domestic, foreign withholding tax and state taxes that may be due upon future repatriation of earnings is not expected to be significant.

Significant components of our deferred tax assets and liabilities are as follows (in thousands):
December 31,
20212020
Deferred tax assets:
Net operating loss carryforwards$115,739 $104,785 
Reserves and accruals3,473 5,242 
Depreciation and amortization1,931 2,819 
Tax credit carryforwards20,480 18,268 
Stock-based compensation2,871 3,168 
Right-of-use lease liability9,322 9,451 
Total gross deferred tax assets153,816 143,733 
Valuation allowance on deferred tax assets(141,087)(131,232)
Total deferred tax assets, net of valuation allowance12,729 12,501 
Deferred tax liabilities:
Fixed assets and intangibles(8,416)(12,272)
Right-of-use asset(8,459)(8,694)
Total deferred tax liabilities(16,875)(20,966)
Net deferred tax liability$(4,146)$(8,465)
Deferred tax liability per balance sheet$(4,329)$(8,697)
less deferred tax assets included in other long-term assets183 232 
Net deferred tax liability$(4,146)$(8,465)
We evaluate a number of factors to determine the realizability of our deferred tax assets. Recognition of deferred tax assets is appropriate when realization of these assets is more likely than not. Assessing the realizability of deferred tax assets is dependent upon several factors including historical financial results. The net deferred tax assets have been partially offset by a valuation allowance because we have incurred losses in the U.S. since our inception. The valuation allowance increased by $9.9
million during 2021 and $1.1 million during 2020. The changes in valuation allowance during 2021 and 2020 are mainly due to taxable losses and an increase in tax attributes.
The valuation allowances of $141.1 million and $131.2 million as of December 31, 2021 and 2020, respectively, primarily relate to temporary tax differences, net operating losses and research and development credits generated in the current and prior years. We believe it is more likely than not that U.S. federal and state deferred tax assets relating to temporary differences, net operating losses and research and development credits are not realizable. As such, full valuation allowances have been applied against U.S. federal and state deferred tax assets.
A reconciliation of the beginning and ending amount of the valuation allowance for the years ended December 31, 2021, 2020, and 2019 is as follows (in thousands):
Valuation Allowance
December 31, 2018$126,108 
Charges to earnings — 
Charges to other accounts3,976 
December 31, 2019130,084 
Charges to earnings — 
Charges to other accounts1,142 
December 31, 2020$131,226 
Charges to earnings— 
Charges to other accounts9,861 
December 31, 2021$141,087 
As of December 31, 2021, we had net operating loss carryforwards for U.S. federal income tax purposes of $508.2 million, of which $1.7 million expire in 2022, and U.S. federal research and development tax credits of $10.0 million, of which $0.4 million expire in 2022 and the rest through 2041. As of December 31, 2021, we had net operating loss carryforwards for state income tax purposes of $196.6 million, of which $0.4 million expire in 2022 and the rest through 2041, and California research and development tax credits of $13.3 million, which do not expire. As of December 31, 2021, we had foreign net loss carryforwards of $3.4 million which can mostly be carried forward indefinitely.
Utilization of the net operating loss carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. In 2021, we continued the Section 382 analysis as historically performed through December 31, 2021 and, based on the information that was available to us, we do not believe that an ownership change occurred during the current year.
The aggregate changes in the balance of our gross unrecognized tax benefits during 2021, 2020, and 2019 were as follows (in thousands):
December 31, 2018$7,344 
Increases in balances related to tax positions during a prior period155 
Increases in balances related to tax positions taken during current period354 
Decreases in balances related to tax positions taken during prior period(20)
December 31, 20197,833 
Increases in balances related to tax positions during a prior period756 
Increases in balances related to tax positions taken during current period441 
Decreases in balances related to tax positions taken during prior period(144)
December 31, 2020$8,886 
Increases in balances related to tax positions during a prior period25 
Increases in balances related to tax positions taken during current period325 
Decreases in balances related to tax positions taken during prior period(721)
December 31, 2021$8,515 
Accrued interest and penalties related to unrecognized tax benefits were included in the income tax provision and are immaterial as of December 31, 2021 and 2020. The uncertain taxes payable are recorded as a long-term liability on the balance sheet. During 2021, we decreased our balances related to tax positions in the prior period to reflect a payment of $0.7 million related to our uncertain tax position in Singapore. We received a final determination from the tax authorities in October 2021 and paid the amounts accrued.
As of December 31, 2021, there were $0.2 million of unrecognized tax benefits that, if recognized, would affect our effective tax rate. We do not anticipate that our existing unrecognized tax benefits will significantly increase or decrease within the next 12 months.
In accordance with U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes related to GILTI as a current period expense when incurred, or (2) factoring such amounts into the measurement of deferred taxes. The Company has treated GILTI related taxes as a current period expense when incurred in the consolidated financial statements.
We file income tax returns in the United States, various states, and certain foreign jurisdictions. As a result of net operating loss carryforwards, all of our tax years are open to federal and state examination in the United States. Tax years from 2012 are open to examination in various foreign countries.