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Income Taxes
6 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company recorded net increases in deferred tax assets of $10.7 million and $37.4 million during the three and six months ended June 30, 2021, respectively, and $44.4 million and $61.0 million during the three and six months ended June 30, 2020, respectively, with a corresponding increase to additional paid in capital, resulting from changes in the outside basis difference on Switch, Inc.’s investment in Switch, Ltd. The Company has determined it is more-likely-than-not that it will be able to realize this deferred tax asset in the future.
Tax Receivable Agreement
The Company has recorded a liability under the tax receivable agreement of $326.3 million and $278.9 million as of June 30, 2021 and December 31, 2020, respectively, of which $67.4 million and $56.8 million is owed to certain named executive officers of the Company and members of its Board of Directors as of June 30, 2021 and December 31, 2020, respectively. The tax receivable agreement provides for the payment of 85% of the amount of the tax benefits, if any, that Switch, Inc. is deemed to realize as a result of increases in the tax basis of its ownership in Switch, Ltd. related to exchanges of noncontrolling interest for Class A common stock. No amounts are expected to be paid within the next 12 months.