Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

The components of pretax income are summarized as follows (in millions):


	Years Ended December 31,
	2023		2022		2021
Domestic	$	340.4	$	509.5	$	264.6
Foreign	8.6		26.8		45.5
Total pretax income	$	349.0	$	536.3	$	310.1

Schedule of Components of Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes is summarized as follows (in millions):


	Years Ended December 31,
	2023		2022		2021
Current provision (benefit):
Federal	$	219.0	$	223.6	$	63.4
States	25.9		23.9		15.9
Foreign	46.5		36.2		48.2
Total current provision (benefit)	291.4		283.7		127.5
Deferred (benefit) provision:
Federal	(250.0)		(199.3)		(54.3)
States	(13.6)		(13.6)		(4.1)
Foreign	1.4		(10.3)		(11.7)
Total deferred (benefit) provision	(262.2)		(223.2)		(70.1)

Total provision for income taxes	$	29.2	$	60.5	$	57.4

Schedule of Effective Income Tax Rate Reconciliation

The provision (benefit) for income taxes differs from the amount computed by applying the federal statutory tax rate of 21% to pretax income for each of the years presented as follows (in millions):


	Years Ended December 31,
	2023		2022		2021
Expected provision at statutory rate	$	73.3	$	112.7	$	65.1
State taxes, net of federal benefit	7.0		12.0		6.5
Foreign income at different tax rates	(24.4)		(18.1)		(0.2)
R&D tax credits	(31.4)		(23.6)		(16.6)
Share-based compensation	(5.2)		(7.4)		(2.2)
Non-deductible compensation	5.1		4.0		4.2



Recognition of previously unrecognized tax benefits	—		(8.1)		—






Other	4.8		(11.0)		0.6
Total provision for income taxes	$	29.2	$	60.5	$	57.4

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company's long-term deferred tax assets and deferred tax liabilities are as follows (in millions):


	As of December 31,
	2023		2022
Deferred tax assets:
Net operating loss carry-forwards	$	44.4	$	57.2
Research and other credit carry-forwards	294.4		281.3
Deferred revenue	74.9		58.1
Share-based compensation	25.4		17.2
Capitalized R&D expenditure	475.7		293.1
Reserves and accruals not currently deductible	133.0		66.1
Operating lease liabilities	31.9		39.7
Other	12.1		13.2
Total deferred tax assets	1,091.8		825.9
Valuation allowance	(326.9)		(310.9)
Deferred tax assets, net of valuation allowance	764.9		515.0
Deferred tax liabilities:
Property and equipment basis differences	(5.5)		—
Purchased intangible assets	(23.0)		(32.3)
Unremitted foreign earnings	(24.1)		(23.7)
Net unrealized gain	(41.9)		(35.8)
Operating lease assets	(29.5)		(36.1)

Total deferred tax liabilities	(124.0)		(127.9)
Net deferred tax assets	$	640.9	$	387.1

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of the Company's total gross unrecognized tax benefits was as follows (in millions):


	Years Ended December 31,
	2023		2022		2021
Balance at beginning of year	$	116.0	$	113.4	$	116
Tax positions related to current year:
Additions	8.9		5.8		7.7
Tax positions related to prior years:
Additions	8.9		6.9		3.3
Reductions	—		(2.5)		(3.6)
Settlements	—		—		(9.4)
Lapses in statutes of limitations	(1.0)		(7.6)		(0.6)
Balance at end of year	$	132.8	$	116.0	$	113.4