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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income taxes is based on net loss before income taxes as follows:
 DECEMBER 31,
(in thousands)202120202019
Net loss before income taxes:
United States$(138,323)$(143,349)$(153,620)
Non-U.S.64,106 (34,507)(46,051)
Net loss before income taxes$(74,217)$(177,856)$(199,671)
DECEMBER 31,
(in thousands, except percentages)202120202019
Provision for income taxes:
Current:
United States $— $(33)$(90)
Non-U.S.593 5,278 — 
Total$593 $5,245 $(90)
Deferred:
United States $— $— $— 
Non-U.S.— — — 
Total— — — 
Provision for income taxes$593 $5,245 $(90)
Effective tax rate(0.80)%(2.95)%0.05 %

Significant components of the Company’s net deferred income tax assets as of December 31, 2021 and 2020 consist of the following:
 DECEMBER 31,
(in thousands)20212020
Net deferred tax assets:
Net operating loss carryforwards$178,597 $169,070 
Stock-based compensation21,603 29,884 
U.S. tax credit carryforwards16,489 13,526 
Envisia asset acquisition4,593 5,007 
Basis difference in intangibles— 7,625 
Convertible Notes(14,912)(19,028)
Other assets14,347 10,697 
Other liabilities(7,938)(5,416)
Valuation allowance(212,779)(211,365)
Total net deferred income taxes$— $— 
A reconciliation of the statutory tax rates and the effective tax rates for the years ended December 31, 2021, 2020 and 2019 is as follows:
 DECEMBER 31,
 202120202019
U.S. federal tax rate21.00 %21.00 %21.00 %
GILTI(14.14)%— %— %
State income taxes, net of federal benefit1.96 %4.02 %4.97 %
Non-taxable foreign loss11.47 %(4.81)%(4.44)%
Stock-based compensation(16.21)%(2.29)%(1.47)%
Other(0.76)%0.48 %0.98 %
Change in valuation allowance(4.12)%(21.35)%(20.99)%
Effective tax rate(0.80)%(2.95)%0.05 %

In March 2019, the IRS issued new guidance related to sequestration on the alternative minimum tax (“AMT”) tax credits. For taxable years beginning after December 31, 2017, refund payments and refund offset transactions due to refundable minimum tax credits will not be reduced due to federal sequestration. In January 2020 the IRS issued new guidance related to sequestration on the AMT tax credits which would restore the portion of the minimum tax credit refunds previously sequestered with respect to multistate tax commission (“MTC”) refund claims in lieu of bonus depreciation under Section 168(k)(4).
On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which is aimed at providing emergency assistance and health care for individuals, families, and businesses affected by the COVID-19 pandemic and generally supporting the U.S. economy. The CARES Act, among other things, includes several business tax provisions which include, but are not limited to modifications of federal net operating loss carrybacks and deductibility, changes to prior year refundable AMT liabilities to allow the accelerated recovery of refund, increase of limitations on business interest deductions from 30 percent to 50 percent of earnings before interest, taxes, depreciation, and amortization, technical corrections of the classification of qualified improvement property making them eligible for bonus depreciation, increase of the limits on charitable contribution deductions from 10 percent to 25 percent of adjusted taxable income, modifications of the treatment of federal loans, loan guarantees, and other investments, suspension of industry specific excise taxes, deferral of the company portion of old age, survivors, and disability insurance program (“OASDI”), and implementation of a refundable employee retention tax credit. During 2020, the Company received the remaining accelerated AMT refund of $0.8 million. The CARES Act did not have a material impact on the Company's consolidated financial statements as of and for the years ended December 31, 2021 and December 31, 2020.
At December 31, 2021, the Company had U.S. federal and state net operating loss (“NOL”) carryforwards of approximately $635.1 million and $616.3 million, respectively. If not utilized, federal NOLs that arose prior to 2018 and state NOLs will begin to expire at various dates beginning in 2031 and 2023, respectively. U.S. federal NOLs that arose on or after January 1, 2018 can be carried forward indefinitely against future income, but can only be used to offset a maximum of 80% of the Company’s federal taxable income in any year. As of December 31, 2021, the Company also had foreign NOL carryforwards of $66.0 million, which are available solely to offset taxable income of its foreign subsidiaries, subject to any applicable limitations under foreign law.
U.S. federal NOLs and tax credit carryforwards are subject to review and possible adjustment by the Internal Revenue Service and may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders over a three-year period in excess of 50%, as defined under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities.
Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. Significant pieces of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2021 and lack of profitability for a sustained period. Such objective evidence limits the ability to consider other subjective evidence, such as projections for future growth. On the basis of this evaluation, as of December 31, 2021, the Company maintains a valuation allowance on all of its deferred tax assets as of December 31, 2021. The amount of deferred tax asset considered realizable, however, could be adjusted if objective negative evidence in the form of cumulative losses or lack of profitability for a sustained period is no longer present and additional weight is given to other subjective evidence such as projections for growth. As of December 31, 2021, 2020, 2019 and 2018, the Company had a valuation allowance of $212.8 million, $211.4 million, $170.3 million and $143.3 million, respectively. The increase in valuation allowance in 2021, 2020 and 2019 of $1.4 million, $41.1 million and $27.0 million, respectively, was primarily due to the increase in NOL carryforwards, offset by other temporary differences.
The Company does not have any unrecognized tax benefits as of December 31, 2021. The Company is subject to taxation in the United States, Ireland, Japan and the United Kingdom. As of December 31, 2021, tax years ended December 31, 2017 through December 31, 2020 are open under the statute of limitations and subject to tax examinations. To the extent the Company has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the IRS, state, or non-U.S. tax authorities to the extent utilized in a future period.