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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
	(in thousands)
Income before taxes:
U.S.	$	312,501	$	510,706	$	133,574
Foreign	406,007		153,143		73,405
Total income before taxes	$	718,508	$	663,849	$	206,979
Income tax expense (benefit):
Current income taxes:
U.S. federal	$	76,092	$	94,548	$	698
U.S. state	19,257		28,460		6,577
Foreign	87,760		56,430		211,904
Total current income taxes	183,109		179,438		219,179
Deferred income taxes:
U.S. federal	(12,032)		791		529
U.S. state	861		32		(2,381)
Foreign	6,411		(242,106)		(323,209)
Total deferred income taxes	(4,760)		(241,283)		(325,061)
Total income tax expense (benefit)	$	178,349	$	(61,845)	$	(105,882)

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,
	2022				2021				2020
	(in thousands)
Income tax expense and rate attributable to:
Federal income tax rate	$	150,887	21.0	%	$	139,408	21.0	%	$	43,466	21.0	%
State income tax rate, net of federal benefit	15,981		2.2	%	22,952		3.5	%	7,231		3.5	%
Foreign income tax rate differential	12,405		1.7	%	18,890		2.8	%	(6,060)		(2.9)	%
GILTI, net	4,834		0.7	%	14,157		2.1	%	7,515		3.6	%
Non-deductible / non-taxable items	3,743		0.5	%	9,637		1.5	%	6,871		3.3	%
Change in valuation allowance	4,414		0.6	%	(192,337)		(29.0)	%	143,012		69.0	%
U.S. tax on foreign earnings	16,822		2.3	%	—		—	%	—		—	%
Foreign tax credits	(28,087)		(3.9)	%	(19,925)		(3.0)	%	(15,904)		(7.7)	%
Research and development credits	(5,488)		(0.8)	%	(13,104)		(2.0)	%	(148)		(0.1)	%
Uncertain tax positions	3,952		0.6	%	21,341		3.2	%	200,571		96.9	%
Share-based compensation	(1,231)		(0.2)	%	(11,930)		(1.8)	%	(1,303)		(0.6)	%
Intra-Entity IP Transfer	—		—	%	(41,858)		(6.3)	%	(492,470)		(237.9)	%
Enacted changes in tax law	—		—	%	(9,554)		(1.4)	%	—		—	%
Other	117		0.1	%	478		0.1	%	1,337		0.7	%
Effective income tax expense and rate	$	178,349	24.8	%	$	(61,845)	(9.3)	%	$	(105,882)	(51.2)	%

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,
	2022		2021
	(in thousands)
Non-current deferred tax assets:
Share-based compensation expense	$	3,130	$	2,706
Accruals, reserves, and other expenses	24,324		24,346
Net operating loss	21,455		24,573
Intangible assets	438,712		502,100


Foreign tax credit	45,746		39,442
Operating lease liabilities	55,624		35,755
Other	25,354		5,811
Valuation allowance	(28,118)		(26,467)
Total non-current deferred tax assets	$	586,227	$	608,266
Non-current deferred tax liabilities:
Unrealized gain on foreign currency	$	(1,760)	$	—
Property and equipment	(2,381)		(12,189)
Right-of-use assets	(47,641)		(28,598)
Intangible assets	(307,474)		—
Other	(723)		(278)
Total non-current deferred tax liabilities	$	(359,979)	$	(41,065)

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,
	2022		2021		2020
	(in thousands)
Unrecognized tax benefit as of January 1	$	218,399	$	206,209	$	4,613
Additions in tax positions taken in prior period	1,697		6,169		519
Reductions in tax positions taken in prior period	(904)		(963)		(340)
Additions in tax positions taken in current period	2,948		23,061		200,947
Settlements	(375)		(763)		(294)
Lapse of statute of limitations	(510)		(342)		(258)
Current year acquisitions	10,426		—		—
Cumulative foreign currency translation adjustment	(12,318)		(14,972)		1,022
Unrecognized tax benefit as of December 31	$	219,363	$	218,399	$	206,209

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, 2022:


The Netherlands			2010 to 2022
Canada			2014 to 2022
Hong Kong			2020 to 2022
Japan			2014 to 2022
China			2016 to 2022
Singapore			2017 to 2022
United States			2007 to 2022