Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Benefit (Provision) for Income Taxes

Our benefit (provision) for income taxes includes U.S. federal, state and foreign income taxes. The domestic and foreign components of our income (loss) before income taxes were as follows:


	Year Ended December 31,
	2025		2024		2023
U.S.	$	984.6	$	829.0	$	477.2
Foreign	35.4		(63.6)		(73.4)
Income before income taxes	$	1,020.0	$	765.4	$	403.8

Our benefit (provision) for income taxes was as follows:


	Year Ended December 31,
	2025		2024		2023
Current:
Federal	$	—	$	0.3	$	(0.8)
State	(2.9)		0.1		(5.4)
Foreign	15.5		(18.9)		(14.9)
	12.6		(18.5)		(21.1)
Deferred:
Federal	(152.0)		145.1		860.5
State	(14.5)		18.5		116.3
Foreign	8.9		26.4		16.1
	(157.6)		190.0		992.9
Benefit (provision) for income taxes	$	(145.0)	$	171.5	$	971.8

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to our income before income taxes:


	Year Ended December 31, 2025

	Amount		% of Income Before Income Taxes
U.S. federal statutory tax rate	$	(214.2)	21.0	%
State and local income taxes, net(1)	(11.7)		1.1	%











Tax credits:
Research and development tax credits	33.3		(3.3)	%

Changes in unrecognized tax benefits	11.0		(1.1)	%
Nontaxable or nondeductible items:
Tax effect of equity-based compensation	48.2		(4.7)	%
Other nontaxable or nondeductible items	(6.8)		0.7	%
Other	(4.8)		0.5	%



Effective tax rate	$	(145.0)	14.2	%

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(1)State taxes in California, New York, Florida, Illinois, and Virginia made up the majority of the tax effect in this category.

A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate was as follows:


	Year Ended December 31,
	2024		2023
Expected provision at U.S. federal statutory tax rate	$	(160.7)	$	(84.8)
Effect of investment in Desert Newco	—		22.7
Research and development credits	46.1		33.1


Effect of changes in tax rates and apportionment	—		(97.1)
Uncertain tax positions	(6.8)		(17.1)
State taxes, net of federal benefit	(19.1)		(1.6)
Equity-based compensation	43.3		—
Effect of DNC Restructure	267.4		—

Other	(13.3)		(5.8)
Effect of changes in valuation allowances	14.6		1,122.4
Benefit (provision) for income taxes	$	171.5	$	971.8

Schedule of Deferred Tax Assets and Liabilities

The components of our deferred taxes were as follows:


	Year Ended December 31,
	2025		2024
DTAs:
Net operating losses	$	571.2	$	507.3
Goodwill	192.7		288.6
Tax credits	243.0		216.5
Deferred revenue	196.6		176.7
Identified intangibles	81.6		114.0
Capitalized research & development costs	24.3		112.9
Deferred interest	39.2		63.4

Operating lease liabilities	19.6		24.6
Unrealized gains and losses	4.4		—

Other	37.5		42.2
Valuation allowance	(172.0)		(161.6)
Total DTAs	1,238.1		1,384.6

DTLs:
Deferred cost revenue	(167.6)		(157.6)

Unrealized gains and losses	—		(40.9)
Operating lease assets	(11.9)		(13.9)


Other	(10.7)		(10.9)
Total DTLs	(190.2)		(223.3)
Net DTAs	$	1,047.9	$	1,161.3

Summary of Tax Credit Carryforwards

As of December 31, 2025, we had U.S. federal, state and foreign gross net operating losses (NOLs) and tax credits, a portion of which will begin to expire in 2030, as follows:


	Gross NOLs and Tax Credits		Portion Subject to a Valuation Allowance
Federal	$	2,429.7	$	99.9

State	2,841.9		1,929.9

Foreign	60.7		46.9
	$	5,332.3	$	2,076.7

Schedule of Unrecognized Tax Benefits Roll Forward

Our liability for unrecognized tax benefits was as follows:


	December 31,
	2025		2024
Balance at beginning of period	$	182.8	$	165.7
Gross increases - tax positions in prior period	5.5		6.6
Gross increases - tax positions in current period	16.8		23.1
Gross decreases - tax positions in prior period	(29.1)		(12.6)

Balance at end of period	$	176.0	$	182.8

Summary of Cash Taxes Paid

Cash paid for income taxes was as follows:


	Year Ended December 31, 2025

Federal	$	1.5
State	5.1






Foreign:

Netherlands	8.3


India	(6.9)


All other foreign jurisdictions	8.5

Total payments (refunds)	$	16.5

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