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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Expense (Benefit)

The following table sets forth income before taxes and the expense for income taxes:


	Year Ended December 31,
	2021		2020		2019
	(in thousands)
Income before taxes:
U.S.	$	510,706	$	133,574	$	58,822
Foreign	153,143		73,405		60,500
Total income before taxes	$	663,849	$	206,979	$	119,322
Income tax expense (benefit):
Current income taxes:
U.S. federal	$	94,548	$	698	$	1,284
U.S. state	28,460		6,577		1,427
Foreign	56,430		211,904		13,373
Total current income taxes	179,438		219,179		16,084
Deferred income taxes:
U.S. federal	791		529		(10,249)
U.S. state	32		(2,381)		(3,579)
Foreign	(242,106)		(323,209)		(2,431)
Total deferred income taxes	(241,283)		(325,061)		(16,259)
Total income tax benefit	$	(61,845)	$	(105,882)	$	(175)

Summary of Tax Expense and Effective Tax Rates

The following table sets forth income reconciliations of the statutory federal income tax rate to actual rates based on income or loss before income taxes:


	Year Ended December 31,
	2021				2020				2019
	(in thousands)
Income tax expense and rate attributable to:
Federal income tax rate	$	139,408	21.0	%	$	43,466	21.0	%	$	25,058	21.0	%
State income tax rate, net of federal benefit	22,952		3.5	%	7,231		3.5	%	5,983		5.0	%
Foreign income tax rate differential	18,890		2.8	%	(6,060)		(2.9)	%	1,994		1.7	%
GILTI, net	14,157		2.1	%	7,515		3.6	%	7,585		6.4	%
Non-deductible / non-taxable items	9,637		1.5	%	6,871		3.3	%	6,727		5.7	%
Change in valuation allowance	(192,337)		(29.0)	%	143,012		69.0	%	(33,691)		(28.2)	%
Foreign tax credits	(19,925)		(3.0)	%	(15,904)		(7.7)	%	(12,541)		(10.4)	%
Research and development credits	(13,104)		(2.0)	%	(148)		(0.1)	%	(189)		(0.2)	%
Uncertain tax positions	21,341		3.2	%	200,571		96.9	%	278		0.2	%
Share-based compensation	(11,930)		(1.8)	%	(1,303)		(0.6)	%	(2,715)		(2.3)	%
Intra-Entity IP Transfer	(41,858)		(6.3)	%	(492,470)		(237.9)	%	—		—	%
Enacted changes in tax law	(9,554)		(1.4)	%	—		—	%	634		0.5	%
Other	478		0.1	%	1,337		0.7	%	702		0.5	%
Effective income tax expense and rate	$	(61,845)	(9.3)	%	$	(105,882)	(51.2)	%	$	(175)	(0.1)	%

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table sets forth deferred income tax assets and liabilities as of the date shown:


	December 31,
	2021		2020
	(in thousands)
Non-current deferred tax assets:
Share-based compensation expense	$	2,706	$	1,934
Accruals, reserves, and other expenses	24,346		16,905
Net operating loss	24,573		26,842
Intangible assets	502,100		493,701


Foreign tax credit	39,442		38,948
Operating lease liabilities	35,755		41,391
Other	5,811		5,601
Valuation allowance	(26,467)		(226,655)
Total non-current deferred tax assets	$	608,266	$	398,667
Non-current deferred tax liabilities:
Unrealized gain on foreign currency	$	—	$	(506)
Property and equipment	(12,189)		(13,583)
Right-of-use assets	(28,598)		(33,769)
Other	(278)		(25)
Total non-current deferred tax liabilities	$	(41,065)	$	(47,883)

Schedule of Unrecognized Tax Benefits Roll Forward

The following table sets forth a reconciliation of the beginning and ending amount of unrecognized tax benefits:


	Year Ended December 31,
	2021		2020		2019
	(in thousands)
Unrecognized tax benefit as of January 1	$	206,209	$	4,613	$	4,511
Additions in tax positions taken in prior period	6,169		519		631
Reductions in tax positions taken in prior period	(963)		(340)		(1,532)
Additions in tax positions taken in current period	23,061		200,947		1,786
Settlements	(763)		(294)		(391)
Lapse of statute of limitations	(342)		(258)		(368)
Cumulative foreign currency translation adjustment	(14,972)		1,022		(24)
Unrecognized tax benefit as of December 31	$	218,399	$	206,209	$	4,613

Summary of Income Tax Examinations

The following table sets forth the tax years subject to examination for the major jurisdictions where we conduct business as of December 31, 2021:


The Netherlands			2009 to 2021
Canada			2014 to 2021
Japan			2014 to 2021
China			2011 to 2021
Singapore			2017 to 2021
United States			2007 to 2021