Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | 14. Income Taxes The Company recorded a provision for income taxes of $16.0 million and $20.9 million for the three months ended September 30, 2026 and 2025, respectively, and a provision for income taxes of $36.6 million and $38.1 million for the nine months ended September 30, 2026 and 2025, respectively. The provisions for income taxes for the three and nine months ended September 30, 2026 and 2025 were primarily driven by the statutory tax expense for domestic and foreign jurisdictions for the respective fiscal years, offset by tax benefits from excess stock-based compensation deductions. During the three months ended September 30, 2026 and 2025, the Company paid foreign withholding taxes of $6.1 million and $5.1 million, respectively. During the nine months ended September 30, 2026 and 2025, the Company paid foreign withholding taxes of $17.0 million and $16.1 million, respectively. As of December 31, 2025, the Company had $108.0 million of unrecognized tax benefits, before interest accrual, including $24.3 million recorded as a reduction of long-term deferred tax assets, $82.7 million recorded as a reduction of other assets associated with refundable withholding taxes previously withheld from licensees in South Korea, and $1.0 million recorded to long-term income taxes payable. As of September 30, 2026, the Company had approximately $26.4 million of unrecognized tax benefits, before interest accrual, including $25.6 million recorded as a reduction of long-term deferred tax assets, and $0.8 million recorded to long-term income taxes payable. In the third quarter of 2026, the Company withdrew its outstanding refund claims for South Korean withholding taxes totaling $82.7 million. The Company had previously recorded an uncertain tax position reserve against the receivable for these refund claims, as such, there was no impact to the Company’s Unaudited Condensed Consolidated Financial Statements as of September 30, 2026. In the third quarter of 2025, the United States enacted federal tax legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”). Included in this legislation are provisions that allow for the immediate expensing of domestic United States research and development expenses, immediate expensing of certain capital expenditures and other changes to the U.S. taxation of profits derived from foreign operations. As a result of the enactment of the legislation, there was an increase to the Company’s income tax expense in 2025, primarily related to changes in the taxation of profits derived from foreign operations and, more specifically, the foreign-derived intangible income deduction. The Company’s income tax expense and effective tax rate for the nine months ended September 30, 2026 decreased as compared to the same period in 2025, primarily due to the impact of OBBBA, which was in effect throughout all periods presented. |