XML 46 R21.htm IDEA: XBRL DOCUMENT
v3.25.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Net income before provision for income taxes consists of the following (in thousands):
|  | Year Ended December 31,
|  | 2025 |  | 2024 |  | 2023
Domestic |  | $ | 280,926 |  |  | $ | 334,485 |  |  | $ | 315,643 |
Foreign |  | 304,361 |  |  | 274,474 |  |  | 325,561 |
Net income before provision for income taxes |  | $ | 585,287 |  |  | $ | 608,959 |  |  | $ | 641,204 |
The provision for (benefit from) income taxes consists of the following (in thousands):
|  | Year Ended December 31,
|  | 2025 |  | 2024 |  | 2023
Federal |  |  |  |  |  |
Current |  | $ | 52,962 |  |  | $ | 95,027 |  |  | $ | 134,332 |
Deferred |  | 14,385 |  |  | 1,578 |  |  | (16,805) |
|  | 67,347 |  |  | 96,605 |  |  | 117,527 |
State |  |  |  |  |  |
Current |  | 13,977 |  |  | 13,702 |  |  | 28,535 |
Deferred |  | 13,766 |  |  | 3,384 |  |  | (3,157) |
|  | 27,743 |  |  | 17,086 |  |  | 25,378 |
Foreign |  |  |  |  |  |
Current |  | 74,689 |  |  | 56,653 |  |  | 51,306 |
Deferred |  | 5,157 |  |  | 17,253 |  |  | 1,940 |
|  | 79,846 |  |  | 73,906 |  |  | 53,246 |
Provision for (benefit from) income taxes |  | $ | 174,936 |  |  | $ | 187,597 |  |  | $ | 196,151 |
The following table is a reconciliation of the U.S. federal statutory rate of 21% to the Company’s effective rate for the year ended December 31, 2025 in accordance with the guidance in ASU No. 2023-09:
|  | Year Ended December 31, 2025
|  | Amount |  | Percent
US federal statutory income tax rate |  | $ | 122,911 |  |  | 21.0 | %
State income taxes, net of federal tax benefit* |  | 25,901 |  |  | 4.4 |
Foreign tax effects |  |  |  |
Switzerland |  |  |  |
Statutory tax rate difference between Switzerland and U.S. |  | (11,536) |  |  | (2.0) |
Canton tax |  | 3,233 |  |  | 0.6 |
Swiss tax rate change - Remeasurement of deferred tax assets |  | 15,136 |  |  | 2.6 |
Other |  | 4,102 |  |  | 0.7 |
Mexico |  |  |  |
Impairment Loss |  | 7,111 |  |  | 1.2 |
Other |  | 1,303 |  |  | 0.2 |
Other Foreign Jurisdictions |  | 14,135 |  |  | 2.4 |
Effect of cross-border tax laws: |  |  |  |
Subpart F |  | 21,622 |  |  | 3.7 |
Foreign-derived intangible income |  | (13,611) |  |  | (2.3) |
Other |  | 825 |  |  | 0.2 |
Tax Credits |  |  |  |
Research and development tax credits |  | (7,840) |  |  | (1.3) |
Nontaxable or Nondeductible Items |  |  |  |
Share-based payment awards |  | 17,335 |  |  | 3.0 |
Other |  | 3,219 |  |  | 0.5 |
Changes in Unrecognized Tax Benefits |  | (29,673) |  |  | (5.1) |
Other Adjustments |  | 763 |  |  | 0.1 |
Income Tax expense |  | $ | 174,936 |  |  | 29.9 | %
*State and local taxes in California, New York, Minnesota and New York City made up the majority (greater than 50%) of the tax effect in this category. The following table is a reconciliation of the U.S. federal statutory rate of 21% to the Company’s effective rate for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09:
|  | Year Ended December 31
|  | 2024 |  | 2023
U.S. federal statutory income tax rate |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit |  | 2.2 |  |  | 2.9 |
U.S. tax on foreign earnings |  | 5.4 |  |  | 3.7 |
Impact of differences in foreign tax rates |  | (2.0) |  |  | 1.4 |
Stock-based compensation |  | 3.4 |  |  | 3.0 |
Settlement on audits |  | — |  |  | 0.1 |
Change in valuation allowance |  | 0.9 |  |  | (1.3) |
Other items not individually material |  | (0.1) |  |  | (0.2) |
Effective tax rate |  | 30.8 | % |  | 30.6 | %
As of December 31, 2025 and 2024, the significant components of our deferred tax assets and liabilities are (in thousands):
|  | December 31,
|  | 2025 |  | 2024
Deferred tax assets: |  |  |  |
Net operating loss and capital loss carryforwards |  | $ | 1,683 |  |  | $ | 2,741 |
Reserves and accruals |  | 61,496 |  |  | 67,221 |
Stock-based compensation |  | 30,975 |  |  | 29,255 |
Deferred revenue |  | 140,486 |  |  | 146,509 |
Capitalized research & development |  | 23,021 |  |  | 32,027 |
Amortizable tax basis in intangibles |  | 1,283,968 |  |  | 1,301,338 |
Other |  | 649 |  |  | 12,282 |
Deferred tax assets before valuation allowance |  | 1,542,278 |  |  | 1,591,373 |
Valuation allowance |  | (11,498) |  |  | (19,390) |
Total deferred tax assets |  | 1,530,780 |  |  | 1,571,983 |
Deferred tax liabilities: |  |  |  |
Depreciation and amortization |  | $ | 11,610 |  |  | $ | 16,485 |
Acquisition-related intangibles |  | 16,357 |  |  | 28,868 |
Other |  | 14,426 |  |  | 4,511 |
Total deferred tax liabilities |  | 42,393 |  |  | 49,864 |
Net deferred tax assets |  | $ | 1,488,387 |  |  | $ | 1,522,119 |
As of December 31, 2025, it was considered more likely than not that our deferred tax assets would be realized with the exception of certain interest expense carryovers, capital loss carryovers and unrealized translation losses as we are unable to forecast sufficient future profits to realize these deferred tax assets. The total valuation allowance as of December 31, 2025 was $11.5 million. During the year ended December 31, 2025, the valuation allowance decreased by $7.9 million primarily due to the change in deferred tax assets on certain interest expense and unrealized translation losses from our German subsidiaries. We may be required to adjust the valuation allowance for deferred tax assets if we determine, based on available evidence at the time of the determination, that it is more likely than not that some portion or all of the deferred tax assets will not be realized. This assessment includes deferred tax assets associated with our Switzerland tax deductible basis created from our 2020 intra-entity transfer of intellectual property, which have a finite utilization period and depend on our ability to generate sufficient taxable income in that jurisdiction. Any changes to the valuation allowance, particularly those related to our Switzerland deferred tax assets, could have a material adverse effect on our results of operations. As of December 31, 2025, we have foreign net operating loss carryforwards of approximately $4.7 million, attributed mainly to losses in Russia and Germany. The losses in Germany can be carried forward indefinitely. The operating loss carryforwards in Russia, if not utilized, will expire beginning 2033. The changes in the balance of gross unrecognized tax benefits, which exclude interest and penalties, for the years ended December 31, 2025, 2024 and 2023, are as follows (in thousands):
|  | Year Ended December 31,
|  | 2025 |  | 2024 |  | 2023
Gross unrecognized tax benefits at January 1, |  | $ | 145,534 |  |  | $ | 149,172 |  |  | $ | 141,560 |
Increases related to tax positions taken during the current year |  | 8,879 |  |  | 12,264 |  |  | 8,616 |
Increases related to tax positions taken during a prior year |  | 1,288 |  |  | 2,031 |  |  | 5,647 |
Decreases related to tax positions taken during a prior year |  | (4,286) |  |  | (3,924) |  |  | (533) |
Decreases related to expiration of statute of limitations |  | (33,988) |  |  | (14,009) |  |  | (3,654) |
Decreases related to settlement with tax authorities |  | — |  |  | — |  |  | (2,464) |
Gross unrecognized tax benefits at December 31, |  | $ | 117,427 |  |  | $ | 145,534 |  |  | $ | 149,172 |
The total amount of gross unrecognized tax benefits as of December 31, 2025 was $117.4 million, of which $111.9 million would impact our effective tax rate if recognized. We file U.S. federal, U.S. state, and non-U.S. income tax returns. Our major tax jurisdictions include U.S. federal, the State of California and Switzerland. We are under IRS audit for U.S. federal tax returns from 2018 to 2020. For U.S state tax returns, we are no longer subject to tax examinations for years before 2020. With few exceptions, we are no longer subject to examination by other foreign tax authorities for years before 2017. We have elected to recognize interest and penalties related to unrecognized tax benefits as a component of income taxes. Interest and penalties included in tax expense for the years ended December 31, 2025, 2024 and 2023 as well as accrued as of December 31, 2025 and 2024 were not material. Disclosed below is a summary of income taxes paid by jurisdiction pursuant to the disclosure requirement of ASU 2023-09 for the year ended December 31, 2025:
|  | Year Ended December 31, 2025
United States - Federal |  | $ | 72,872 |
United States - State and local |  | 13,792 |
Israel |  | 7,291 |
Other foreign jurisdictions |  | 40,798 |
Total income taxes paid |  | $ | 134,753 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration