Aurora Innovation, Inc. Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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


	Twelve Months Ended December 31,
	2023		2022		2021




Deferred income benefit:
Federal	$	—	$	—	$	(4)
State	—		—		(1)
Total deferred income tax benefit	—		—		(5)
Income tax benefit	$	—	$	—	$	(5)

The reconciliations of the effective tax rate from the federal statutory rate were as follows:


	Twelve Months Ended December 31,
	2023		2022		2021
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
State income tax, net of federal tax benefit	—		—		0.1
Stock-based compensation	(1.8)		(0.2)		(0.4)
Research and development credits	3.7		1.5		2.5
Liability classified financial instruments	(0.5)		1.4		(0.7)
Adjustments of prior years' taxes	(2.7)		—		—
Goodwill impairment	—		(13.6)		—
Other	(0.3)		(0.1)		(0.1)
Change in valuation allowance	(19.4)		(10.0)		(21.8)
Effective tax rate	—	%	—	%	0.6	%

The components of deferred tax assets and liabilities were as follows (in millions):


	As of
	December 31, 2023		December 31, 2022
Deferred tax assets:
Net operating losses	$	404	$	324
Tax credits	122		83
Stock-based compensation	8		17
Capitalized R&D	222		130
Lease liability	26		29
Other	16		14
Deferred tax assets, gross	798		597
Valuation allowance	(726)		(542)
Deferred tax assets, net of valuation allowance	72		55
Deferred tax liabilities:
Depreciation and amortization	(47)		(27)
Right of use asset	(26)		(29)
Other	(3)		(3)
Deferred tax liabilities	(76)		(59)
Deferred tax liabilities, net	$	(4)	$	(4)

The components of changes in the valuation allowance were as follows (in millions):


	Twelve Months Ended December 31,
	2023		2022		2021
Valuation allowance at beginning of period	$	542	$	331	$	87
Change in deferred tax asset positions	184		211		244

Valuation allowance at end of period	$	726	$	542	$	331

The components of changes in unrecognized tax benefits were as follows (in millions):


	Twelve Months Ended December 31,
	2023		2022		2021
Unrecognized tax benefits at beginning of period	$	21	$	18	$	5
Increases related to tax positions taken during a prior year	1		1		1
Increases related to tax positions taken during the current year	9		8		12
Decreases related to tax positions taken during a prior year	—		(6)		—
Unrecognized tax benefits at end of period	$	31	$	21	$	18