Income Taxes |
9 Months Ended | ||||||||||||
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Sep. 30, 2026 | |||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||
| Income Taxes |
Tax Rate For the three and nine months ended September 30, 2026, our effective tax rate was (128.5)% and 20.9%, respectively, compared to 16.3% and 16.8%, respectively, in the prior year comparative periods. The effective tax rate of (128.5)% for the three months ended September 30, 2026, arises from a tax expense of $11.6 million on a pretax loss of $9.0 million. The change in our effective tax rate for the three months ended September 30, 2026 was primarily driven by the non-deductible IPR&D charge related to the RayThera stock acquisition, partially offset by a decrease in valuation allowances on Swiss loss carryforwards following a tax law change during the quarter. The nine months ended September 30, 2026, also reflects non-deductible expenses related to our Apellis acquisition, partially offset by favorable impacts of a current year settlement of a foreign tax audit and the vesting of certain share-based awards. The same period in 2025, also included favorable deferred tax impacts of decreases in foreign withholding taxes. Accounting for Uncertainty in Income Taxes We and our subsidiaries are routinely examined by various taxing authorities. We file income tax returns in various U.S. states and in U.S. federal and other foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal tax examination for years before 2022 or state, local or non-U.S. income tax examinations for years before 2013. It is reasonably possible that we will adjust the value of our uncertain tax positions related to certain transfer pricing, collaboration matters, withholding taxes and other issues as we receive additional information from various taxing authorities, including reaching settlements with such authorities. For additional information on our income taxes, please read Note 17, Income Taxes, to our consolidated financial statements included in our 2025 Form 10-K.
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