Income Taxes (Tables)

12 Months Ended

Jan. 31, 2026

Schedule of US and non US Components of Income Before Income Tax Expense (Benefit)

The U.S. and non-U.S. components of income (loss) from continuing operations before income taxes consist of the following (in millions):


	Year Ended
	January 31, 2026		February 1, 2025		February 3, 2024
U.S. operations	$	105.9	$	(402.2)	$	(383.3)
Non-U.S. operations	2,940.7		(492.5)		(375.4)
Income (loss) before income taxes	$	3,046.6	$	(894.7)	$	(758.7)

Schedule of Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes consists of the following (in millions):


	Year Ended
	January 31, 2026		February 1, 2025		February 3, 2024
Current income tax provision (benefit):
Federal	$	69.4	$	30.9	$	(1.0)
State	2.7		0.5		(2.1)
Foreign	262.2		70.8		27.0
Total current income tax provision	334.3		102.2		23.9
Deferred income tax provision (benefit):
Federal	(19.5)		(34.5)		186.9
State	1.7		(2.4)		4.7
Foreign	60.0		(75.0)		(40.8)
Total deferred income tax provision (benefit)	42.2		(111.9)		150.8
Total provision (benefit) for income taxes	$	376.5	$	(9.7)	$	174.7

Schedule of Effective Income Tax Rate Reconciliation

The income tax expense differs from the amount computed by applying the U.S. federal statutory rate of 21% to income before income taxes as follows (in millions, except percentages):


	Year Ended January 31, 2026
U.S. federal statutory tax rate	$	639.8	21.0%
State taxes, net of federal benefit (1)	4.4		0.1
Foreign tax effect
Singapore
Statutory tax rate difference between Singapore and United States	(113.7)		(3.7)
Development and expansion incentive	(221.7)		(7.3)
Sale of business	(117.6)		(3.9)
Qualified domestic top-up tax	41.4		1.4
Other	15.2		0.5
Other foreign jurisdictions	21.0		0.7

Effect of cross-border tax laws
Subpart F income	139.4		4.6
Global intangible low-taxed income	58.1		1.9
Other	(22.6)		(0.7)
Tax credits
Research and development tax credits	(79.8)		(2.6)
Other	(7.5)		(0.2)
Changes in valuation allowance	(113.0)		(3.7)
Nontaxable or nondeductible items
Stock based compensation	12.6		0.4
Other	(5.8)		(0.2)
Changes in unrecognized tax benefits	86.3		2.8
Other adjustments
Deemed royalty	40.1		1.3
Other	(0.1)		—
Effective tax rate	$	376.5	12.4%

(1)State taxes in Illinois, Massachusetts, and Arizona for fiscal 2026 made up the majority (greater than 50%) of the tax effect in this category.

As previously disclosed for the years ended February 1, 2025, and February 3, 2024, prior to the adoption of ASU 2023-09, the following is a reconciliation of the difference between the U.S. federal statutory income taxes and the total income tax expense (benefit) as follows (in millions):


	Year Ended
	February 1, 2025		February 3, 2024

Tax at U.S. statutory rate	$	(187.9)	$	(159.3)
State taxes, net of federal benefit	(2.0)		2.5
Difference in U.S. and non-U.S. tax rates	98.2		69.5
Foreign income inclusion in U.S.	159.7		220.0
Change in federal valuation allowance	36.9		92.4
Federal research and development credits	(102.8)		(88.0)

Stock-based compensation	(36.1)		(0.5)
Non-deductible compensation	17.1		15.8
Intellectual property transaction	—		15.3
Uncertain tax positions	2.7		1.0







Other	4.5		6.0
Total provision (benefit) for income taxes	$	(9.7)	$	174.7

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consist of the following (in millions):


	January 31, 2026		February 1, 2025
Deferred tax assets:
Net operating losses	$	105.3	$	112.0
Income tax credits	1,085.5		1,133.0
Intangible assets	410.2		536.7


Lease liabilities	44.9		44.2
Other	102.9		96.3
Gross deferred tax assets	1,748.8		1,922.2
Valuation allowance	(1,113.3)		(1,176.2)
Total deferred tax assets	635.5		746.0
Deferred tax liabilities:
Intangible assets	(184.0)		(274.3)
Fixed assets	(67.4)		(41.5)
Unremitted earnings of non-U.S. subsidiaries	(20.1)		(25.6)

Right of use assets	(38.6)		(37.2)
Total deferred tax liabilities	(310.1)		(378.6)
Net deferred tax assets	$	325.4	$	367.4

The deferred tax assets and liabilities based on tax jurisdictions are presented on the Company’s consolidated balance sheets as follows (in millions):


	January 31, 2026		February 1, 2025
Non-current deferred tax assets	$	345.9	$	401.2
Non-current deferred tax liabilities	(20.5)		(33.8)
Net deferred tax assets	$	325.4	$	367.4

Schedule of Unrecognized Tax Benefits Reconciliation

The following table reflects changes in the unrecognized tax benefits (in millions):


	Year Ended
	January 31, 2026		February 1, 2025		February 3, 2024
Unrecognized tax benefits as of the beginning of the period	$	541.7	$	476.5	$	317.5

Increases related to prior year tax positions	101.6		—		—
Decreases related to prior year tax positions	(14.1)		(7.7)		(0.8)
Increases related to current year tax positions	68.3		74.9		163.1

Settlements	(102.3)		(0.2)		(1.0)
Lapse in the statute of limitations	(1.2)		(1.4)		(1.8)
Foreign exchange gain	0.6		(0.4)		(0.5)
Gross amounts of unrecognized tax benefits as of the end of the period	$	594.6	$	541.7	$	476.5

Schedule of Supplemental Cash Flow Information

The following table presents supplemental cash flow information related to income taxes paid, net of refunds received (in millions):


	Year Ended January 31, 2026
U.S. Federal	$	4.1
U.S. State	1.1
Foreign
Singapore	61.0
India	11.5
Israel	6.6
Other	7.8
Total cash paid for income taxes, net of refunds received	$	92.1


	Year Ended
	January 31, 2026		February 1, 2025		February 3, 2024
Supplemental Cash Flow Information:
Cash paid for interest	$	177.7	$	173.4	$	173.7

Non-Cash Investing and Financing Activities:

Purchases under technology license obligations	$	11.9	$	307.5	$	56.2


Unpaid purchases of property and equipment at end of year	$	156.4	$	69.3	$	80.1