v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Before the Provision for Income Taxes from Continuing Domestic and Foreign Operations
The following table presents income from continuing operations before provision for income taxes for domestic and international operations.
Year Ended December 31,
(in millions)202520242023
Domestic
$845.2 $597.5 $409.2 
Foreign(139.8)(111.5)(77.1)
Income before provision for income taxes$705.4 $486.0 $332.1 
Schedule of Components of the Provision for Income Tax Expense (Benefit) for Continuing Operations
The following table presents the components of income tax expense for continuing operations.
Year Ended December 31,
(in millions)202520242023
Current:
Federal$55.5 $215.2 $115.0 
State50.9 52.5 28.1 
Foreign
(43.8)— — 
Current income taxes62.6 267.7 143.1 
Deferred:
Federal142.5 (104.9)(45.2)
State1.9 (18.1)(15.5)
Foreign19.8 — — 
Deferred income taxes
164.2 (123.0)(60.7)
Provision for income taxes$226.8 $144.7 $82.4 
Schedule of Provision for Income Taxes on Earnings Subject to Income Taxes Differs from Statutory Federal Rate
The provision for income taxes on earnings subject to income taxes differed from the statutory federal rate due to the following (after the adoption of ASU 2023-09):
Year Ended December 31, 2025
(dollars in millions)
Amount
%
Federal income taxes at 21%
$148.1 21.0 %
State and local income taxes, net of federal benefit (1)
3.1 0.4 %
Foreign tax effects
Switzerland
Statutory tax rate difference between Switzerland and U.S.
16.4 2.3 %
Changes in valuation allowances(18.8)(2.7)%
Undistributed earnings
19.8 2.8 %
Other(11.2)(1.6)%
Other foreign jurisdictions3.7 0.5 %
Effect of cross-border tax laws
Global intangible low-taxed income, net52.9 7.5 %
Foreign tax credits
(7.9)(1.1)%
Other effects of cross-border tax laws total - below 1.05%
(0.5)(0.1)%
Tax credits
Research and development tax credits(35.6)(5.0)%
Changes in valuation allowance7.7 1.1 %
Nontaxable or nondeductible items
Officer compensation
13.6 1.9 %
Branded prescription drug fee
7.5 1.1 %
Other non-deductible and non-taxable total - below 1.05%
8.3 1.2 %
Other
Stock-based compensation expense (windfall/shortfall)
(13.7)(1.9)%
Basis difference in subsidiary held for sale
(15.7)(2.2)%
Changes in unrecognized tax benefits49.1 7.0 %
Provision for income taxes$226.8 32.2 %
_________________________
(1) 50% or more of our state tax provision relates to the Tennessee and Kentucky state jurisdictions.
The provision for income taxes on earnings subject to income taxes differed from the statutory federal rate due to the following (prior to the adoption of ASU 2023-09):
Year Ended December 31,
(dollars in millions)
20242023
Federal income taxes at 21%
$102.1 $69.7 
State income tax, net of federal benefit34.6 17.5 
Branded prescription drug fee7.5 8.7 
Loss on extinguishment of convertible senior notes29.1 — 
Stock-based compensation expense(20.4)(3.9)
Officer compensation3.3 9.6 
Foreign rate differential
7.2 3.4 
Change in tax rate(0.6)(5.5)
Research credits(49.2)(42.2)
Change in valuation allowance23.9 22.0 
Other7.2 3.1 
Provision for income taxes$144.7 $82.4 
Schedule of Cash Flow, Supplemental Disclosures
The following table presents income taxes paid for 2025:
(in millions)
Amount
U.S. Federal
$72.7 
Aggregated state and local jurisdictions (1)
8.7 
Total income taxes paid, net
$81.4 
_________________________
(1) The amount of income taxes paid during 2025 did not meet the 5% disaggregation threshold.
Schedule of Components of Deferred Tax Assets
The following table presents the significant components of our deferred tax assets:
 
December 31,
(in millions)20252024
Deferred tax assets:
Net operating losses$8.4 $50.5 
Research and development credits74.6 62.8 
Capitalized research and development85.7 255.7 
Stock-based compensation expense59.7 61.4 
Operating lease assets111.8 122.7 
Intangible assets117.0 121.4 
Accrued payroll
27.2 24.1 
Other55.0 27.6 
Total deferred tax assets539.4 726.2 
Deferred tax liabilities:
Operating lease liabilities(96.9)(112.8)
Other(24.9)(15.5)
Total deferred tax liabilities(121.8)(128.3)
Net of deferred tax assets and liabilities417.6 597.9 
Valuation allowance(97.3)(112.2)
Net deferred tax assets$320.3 $485.7 
Schedule of Activity Related to Unrecognized Tax Benefits
The following table presents a summary of activity related to unrecognized tax benefits:
Year Ended December 31,
(in millions)202520242023
Balance at January 1$179.8 $121.0 $84.5 
(Decrease) increase related to prior year tax positions
(11.2)4.0 3.4 
Increase related to current year tax positions51.3 54.8 36.7 
Decrease related to prior year tax positions
— — (3.6)
Balance at December 31$219.9 $179.8 $121.0