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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax (benefit) expense were as follows:


(in thousands of US dollars)	2022		2021		2020
Current taxes
United States	$	3	$	2	$	1
Foreign - Korea	37,474		5		—
Foreign - Other	1,922		995		291
Current taxes	39,399		1,002		292
Deferred taxes
United States	(40,462)		—		—
Foreign - Korea	—		—		—
Foreign - Other	—		—		—
Deferred taxes	(40,462)		—		—
Income tax (benefit) expense	$	(1,063)	$	1,002	$	292

Schedule of Loss Before Income Taxes

The components of loss before income taxes are as follows:


(in thousands of US dollars)	2022		2021		2020
United States	$	(232,278)	$	(296,529)	$	(8,771)
Foreign - Korea	185,809		(1,226,675)		(455,683)
Foreign - Other	(46,636)		(18,384)		1,589
Loss before income taxes	$	(93,105)	$	(1,541,588)	$	(462,865)

Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate

Differences between the provision at the federal statutory rate and the provision recorded at the consolidated level are as follows:


(in thousands of US dollars)	2022		2021		2020
Taxes computed at the federal statutory rate	$	(19,552)	$	(323,770)	$	(99,667)
Differences resulting from:
Statutory rate difference	51,114		(43,633)		(14,192)

Change in valuation allowances	(143,831)		393,483		118,253
Global intangible low taxed income tax ("GILTI")	93,097		—		—
Stock compensation	36,992		(20,428)		—
Tax credit	(34,952)		(5,214)		—
Other nondeductible expense	15,157		260		(3,994)
Other	912		304		(108)
Income tax (benefit) expense	$	(1,063)	$	1,002	$	292

Schedule of Income Tax Effects of Temporary Differences that Give Rise to Deferred Income Tax Assets and Deferred Income Tax Liabilities

The income tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities were as follows:


(in thousands of US dollars)	December 31, 2022		December 31, 2021
Deferred tax assets
Provision and allowances	$	57,434	$	43,156
Depreciation	6,847		5,212
Accrued expenses	51,922		43,223
Amortization	32,166		49,529
Defined severance benefits	70,628		68,421
Lease liabilities	352,732		361,420
Net operating loss carryforwards	789,856		1,019,583
Tax credits	55,444		23,066
Other	28,513		6,795
Total deferred tax assets	1,445,542		1,620,405
Less: valuation allowances	(1,085,154)		(1,284,380)
Total deferred tax assets net of valuation allowance	$	360,388	$	336,025

Deferred tax liabilities
Prepaid expenses	$	(696)	$	(88)
Accrued income	(1,693)		(1,745)
Lease asset	(317,286)		(333,965)
Loan payable	(250)		(89)
Other	(1)		(138)
Total deferred liabilities	(319,926)		(336,025)
Net deferred tax assets/(liabilities)	$	40,462	$	—

Summary of Valuation Allowance

Changes in the valuation allowances, mainly due to net operating loss carryforwards, were as follows:


(in thousands)	2022		2021		2020
Beginning balance, January 1	$	(1,284,380)	$	(975,187)	$	(721,809)
Changes to existing valuation allowances	103,005		(393,430)		(118,144)
Derecognition of valuation allowances	40,462		—		—
Changes in foreign exchange rates, statutory rates and other	55,759		84,237		(135,234)
Ending balance, December 31	$	(1,085,154)	$	(1,284,380)	$	(975,187)

Summary of Operating Loss Carryforwards

The net operating loss carryforwards in Korea expire as follows:


(in thousands)	Korea


2025	$	278,813
2026	418,051
2027	518,509
2028	830,812
2029	332,525
2035 - 2037	942,168

Total net operating loss carryforwards	$	3,320,878