INCOME TAXES |
9 Months Ended |
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Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | 14. INCOME TAXES We recorded an income tax benefit of $1.87 billion and $1.84 billion for the three and nine months ended September 30, 2026, respectively, compared with an income tax benefit of $12.1 million for the three months ended September 30, 2025 and income tax expense of $34.7 million for the nine months ended September 30, 2025. The 2026 income tax benefit was primarily attributable to the release of valuation allowances on certain U.S. federal and state deferred tax assets in the three months ended September 30, 2026. We evaluate the realizability of our deferred tax assets quarterly, considering the relative weight of positive and negative evidence in each relevant tax jurisdiction. During the three months ended September 30, 2026, we concluded, based on sustained profitability and our expectations for future taxable income, that it was more likely than not that certain U.S. federal and state deferred tax assets would be realized. Accordingly, we released $1.95 billion of valuation allowance related to deferred tax assets from prior years and recognized the release as a discrete income tax benefit during the three months ended September 30, 2026. The income tax effects of changes in valuation allowances relating to current-year estimated ordinary income were reflected in the estimated annual effective tax rate, as applicable. We continue to maintain valuation allowances on certain net operating loss carryforwards and tax credit deferred tax assets for which realization is not considered more likely than not, including state research and development tax credits. The valuation allowance on state research and development tax credits reflects our expectation that future credit generation will exceed the amount expected to be utilized under applicable state tax rules. We will continue to reassess the realizability of our deferred tax assets each quarter.
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