Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Income tax expense was $25,654 and $132,964 for the three and nine months ended September 30, 2026, respectively, and $22,323 and $47,182 for the three and nine months ended September 30, 2025, respectively. The income tax expense for the three and nine months ended September 30, 2026 and 2025 was primarily attributable to the application of the Company’s expected current worldwide effective tax rate for the full year to the year-to-date actual pre-tax income, reflecting the mix of taxable income across jurisdictions as well as the impact of certain discrete items. Specifically, the provision for income taxes for the three months ended September 30, 2026 included a discrete net tax benefit of approximately $11,501, attributable mainly to U.S. share-based compensation. The income tax expense for the three and nine months ended September 30, 2025 included a discrete net tax benefit of $917 and $9,605, respectively, primarily related to updated provision estimates for U.S. R&D credits for prior periods. On a quarterly basis, the Company evaluates the realizability of deferred tax assets by jurisdiction and assesses the need for a valuation allowance. In assessing the realizability of deferred tax assets, the Company considers historical profitability, evaluation of scheduled reversals of deferred tax liabilities, projected future taxable income and tax-planning strategies. Valuation allowances have been provided on deferred tax assets where, based on all available evidence, it was considered more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. After consideration of all positive and negative evidence, as of September 30, 2026, the Company maintained a full valuation allowance against its net deferred tax assets. The Company may release all or a portion of the valuation allowance in the near-term; however, the release of the valuation allowance, as well as the exact timing and the amount of such release, continue to be subject to, among other things, the Company’s level of profitability, revenue growth, clinical program progression and expectations regarding future profitability. The Company’s total deferred tax asset balance subject to the valuation allowance was approximately $3.6 billion as of September 30, 2026. As of September 30, 2026, the Company had gross unrecognized tax benefits of $28,068. Due to the uncertain and complex application of income tax regulations by certain tax authorities outside of the U.S., it is possible that the ultimate resolution of ongoing audits may result in liabilities that could be materially different from current estimates. The ongoing tax audits in various jurisdictions could impact future tax expenses if tax authorities in their administration of tax laws during open audits may lead us to change our assessment of whether or not it is more likely than not that certain tax benefit positions will be sustained. The Company’s reserve for uncertain tax positions increased by $2,021 and $232 in the three and nine months ended September 30, 2026, respectively, primarily due to an increase in U.S. federal and state tax attributes, partially offset by the settlement of the China audit in a prior quarter.
|