Aurora Innovation, Inc. Post-effective amendment to a registration statement that is not immediately effective upon filing

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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


	Twelve Months Ended December 31,
	2022		2021		2020




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,
	2022		2021		2020
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
State income tax, net of federal tax benefit	—		0.1		—
Stock-based compensation	(0.2)		(0.4)		(1.5)
Research and development credits	1.5		2.5		3.5
Liability classified financial instruments	1.4		(0.7)		—
Goodwill impairment	(13.6)		—		—
Other	(0.1)		(0.1)		0.2
Change in valuation allowance	(10.0)		(21.8)		(23.2)
Effective tax rate	—	%	0.6	%	—	%

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


	As of
	December 31, 2022		December 31, 2021
Deferred tax assets:
Net operating losses	$	324	$	244
Tax credits	83		45
Stock-based compensation	17		41
Capitalized R&D	130		—

Lease liability	29		31
Other	14		12
Deferred tax assets, gross	597		373
Valuation allowance	(542)		(331)
Deferred tax assets, net of valuation allowance	55		42
Deferred tax liabilities:
Depreciation and amortization	(27)		(7)
Right of use asset	(29)		(32)
Other	(3)		(7)
Deferred tax liabilities	(59)		(46)
Deferred tax liabilities, net	$	(4)	$	(4)

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


	Twelve Months Ended December 31,
	2022		2021		2020
Valuation allowance at beginning of period	$	331	$	87	$	31
Change in deferred tax asset positions	211		244		56

Valuation allowance at end of period	$	542	$	331	$	87

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


	Twelve Months Ended December 31,
	2022		2021		2020
Unrecognized tax benefits at beginning of period	$	18	$	5	$	2
Increases related to tax positions taken during a prior year	1		1		—
Increases related to tax positions taken during the current year	8		12		3
Decreases related to tax positions taken during a prior year	(6)		—		—
Unrecognized tax benefits at end of period	$	21	$	18	$	5