Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Effective Tax Rate Our overall effective tax rate for the three months ended March 31, 2025 was 18.8%. This rate differs from the federal statutory rate due to the favorable impact of R&D tax credits and windfall benefit on stock-based compensation partially offset by executive compensation limitation under Internal Revenue Code (“IRC”) Section 162(m), increases in uncertain tax positions and state taxes net of federal benefit. The effective tax rate was favorably impacted by a net $12.1 million discrete tax benefit associated with net windfall related to stock-based compensation for stock awards that vested during the three months ended March 31, 2025. By comparison, our overall effective tax rate for the three months ended March 31, 2024 was 19.6%. This rate differed from the federal statutory rate due to the favorable impact of R&D tax credits, windfall benefit on stock-based compensation, and net gain related to an investment transaction not recognized for tax purposes, partially offset by the executive compensation limitation under IRC Section 162(m) and state taxes net of federal benefit. The effective tax rate was favorably impacted by a $4.1 million discrete tax benefit primarily associated with net windfalls related to stock-based compensation for stock awards that vested during the three months ended March 31, 2024. Deferred Tax Assets The change in deferred tax balances from $301.9 million as of December 31, 2024 to $333.3 million as of March 31, 2025, was primarily driven by an increase in deferred tax assets related to stock-based compensation expense not yet deductible for tax purposes and the capitalization of research and development costs under IRC Section 174. The overall increase was further impacted by a decrease in deferred tax liabilities related to previously unrealized investment gains now realized for tax. These increases were partially offset by the reversal of certain deferred tax assets through additional paid-in capital, associated with the partial repurchase of our 2027 Notes.
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