MYRIAD GENETICS INCMYGN
MYRIAD GENETICS INC Income Taxes Disclosure
INCOME TAXES
Income tax expense (benefit) consists of the following:
| Years Ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Current: | |||||||||||||||||
| Federal | $ | (31.5) | $ | 3.4 | $ | 3.4 | |||||||||||
| State | 1.1 | 1.5 | 1.8 | ||||||||||||||
| Foreign | (0.2) | 1.2 | 0.2 | ||||||||||||||
| Total current | (30.6) | 6.1 | 5.4 | ||||||||||||||
| Deferred: | |||||||||||||||||
| Federal | (35.3) | (15.5) | (51.8) | ||||||||||||||
| State | (2.5) | (5.5) | (5.2) | ||||||||||||||
| Foreign | 0.4 | 3.1 | 0.1 | ||||||||||||||
| Change in valuation allowance | 38.8 | 15.6 | 52.6 | ||||||||||||||
| Total deferred | 1.4 | (2.3) | (4.3) | ||||||||||||||
Total income tax (benefit) expense | $ | (29.2) | $ | 3.8 | $ | 1.1 | |||||||||||
Loss before income taxes consists of the following:
| Years Ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | (394.6) | $ | (125.4) | $ | (263.2) | |||||||||||
| Foreign | (0.5) | 1.9 | 1.0 | ||||||||||||||
| Total | $ | (395.1) | $ | (123.5) | $ | (262.2) | |||||||||||
The table below provides the updated requirements of ASU 2023-09 for 2025. See Note 1 - Organization and Summary of Significant Accounting Policies - Recent accounting pronouncements for additional details on the adoption of ASU 2023-09.
The effective income tax rate for the year ended December 31, 2025 differs from the statutory federal income tax rate as follows:
Year Ended December 31, | |||||||||||
| (in millions) | 2025 | ||||||||||
| Federal income tax benefit at the statutory rate | (83.0) | 21.0 | % | ||||||||
State and local income taxes, net of federal tax effect(1) | 0.6 | (0.1) | % | ||||||||
Foreign tax effects: | |||||||||||
Other foreign jurisdictions | |||||||||||
| Statutory tax rate difference from United States | 0.1 | — | % | ||||||||
| Change in valuation allowance | (0.4) | 0.1 | % | ||||||||
| Tax credits | (2.5) | 0.6 | % | ||||||||
| Changes in valuation allowance | 35.0 | (8.9) | % | ||||||||
| Nontaxable/nondeductible items: | |||||||||||
Incentive stock option and ESPP Expense | 3.5 | (0.9) | % | ||||||||
Non-deductible officer compensation | 3.0 | (0.8) | % | ||||||||
| Changes in unrecognized tax benefits | (28.2) | 7.2 | % | ||||||||
| Impairments | 39.1 | (9.9) | % | ||||||||
| Other, net | 3.6 | (0.9) | % | ||||||||
Total income tax benefit | (29.2) | 7.4 | % | ||||||||
(1) 2025 State taxes in Louisiana, North Carolina, Alabama, Tennessee, Illinois, and New York made up the majority (greater than 50%) of the tax effect in this category. | |||||||||||
As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows:
| (in millions) | 2024 | 2023 | |||||||||||||||||||||
Federal income tax benefit at the statutory rate | $ | (25.9) | 21.0 | % | $ | (54.9) | 21.0 | % | |||||||||||||||
| State income taxes, net of federal benefit | (2.4) | 1.9 | % | (4.1) | 1.6 | % | |||||||||||||||||
| Research and development credits | (0.4) | 0.3 | % | (1.6) | 0.6 | % | |||||||||||||||||
| Uncertain tax positions | 2.8 | (2.3) | % | 3.7 | (1.4) | % | |||||||||||||||||
Stock-based incentive awards | 0.8 | (0.6) | % | 1.2 | (0.5) | % | |||||||||||||||||
| Foreign rate differential | 3.3 | (2.7) | % | (0.4) | 0.2 | % | |||||||||||||||||
| Change in valuation allowance | 15.7 | (12.7) | % | 52.6 | (20.1) | % | |||||||||||||||||
| Non-deductible officer compensation | 3.9 | (3.2) | % | 3.0 | (1.1) | % | |||||||||||||||||
Acquisitions and dispositions | 5.1 | (4.1) | % | 0.1 | — | % | |||||||||||||||||
| Other, net | 0.9 | (0.7) | % | 1.5 | (0.7) | % | |||||||||||||||||
Total income tax expense | $ | 3.8 | (3.1) | % | $ | 1.1 | -0.4 | % | |||||||||||||||
The significant components of the Company’s deferred tax assets and liabilities were comprised of the following:
| December 31, | |||||||||||
| (in millions) | 2025 | 2024 | |||||||||
| Deferred tax assets: | |||||||||||
| Net operating loss carryforwards | $ | 82.5 | $ | 62.7 | |||||||
| Stock compensation expense | 5.6 | 6.6 | |||||||||
| Research and development credits | 22.0 | 20.6 | |||||||||
| Lease liability | 21.8 | 24.4 | |||||||||
Capitalized research and development costs | 37.1 | 54.3 | |||||||||
| Accrued expenses and liabilities | 10.4 | 16.5 | |||||||||
| Other, net | 3.8 | — | |||||||||
| Total gross deferred tax assets | 183.2 | 185.1 | |||||||||
| Less valuation allowance | (150.8) | (111.9) | |||||||||
| Total deferred tax assets | 32.4 | 73.2 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Intangible assets | 17.0 | 55.5 | |||||||||
| Lease right-of-use assets | 11.9 | 13.3 | |||||||||
| Property, plant and equipment | 3.2 | 3.2 | |||||||||
| Other, net | — | 0.8 | |||||||||
| Total deferred tax liabilities | 32.1 | 72.8 | |||||||||
Net deferred tax asset | $ | 0.3 | $ | 0.4 | |||||||
The Company incurred a loss in the current year and the two preceding years, resulting in a three-year cumulative loss. Pursuant to ASC 740, Income Taxes ("ASC 740"), a company that is in a cumulative loss position must consider the weight of this significant negative evidence together with the weight of other positive and negative evidence that is available to determine the realizability of deferred tax assets and that overcoming negative evidence such as cumulative losses in recent years is difficult. Due to significant negative evidence and the lack of sufficient positive evidence, the Company has applied a valuation allowance to the majority of its deferred tax assets, leaving a remaining deferred tax asset balance of $0.3 million. For those foreign entities for which an election has been made to be treated as disregarded for U.S. tax purposes, the appropriate U.S. jurisdiction deferred tax assets and liabilities have been recorded.
At December 31, 2025, the Company had the following net operating loss and research credit carryforwards (tax effected), with their respective expiration periods. Certain carryforwards are subject to the limitations of Section 382 and 383 of the Internal Revenue Code as indicated:
Carryforwards (in millions) | Amount | Subject to Sections 382, 383 | Expires beginning in year | Through | ||||||||||||||||||||||
| Federal net operating loss | $ | 60.9 | Yes | 2033 | Indefinite | |||||||||||||||||||||
| Federal capital loss | 13.8 | No | 2026 | 2029 | ||||||||||||||||||||||
| Utah net operating loss | 0.9 | No | Indefinite | Indefinite | ||||||||||||||||||||||
| California net operating loss | 5.8 | Yes | 2029 | 2045 | ||||||||||||||||||||||
| Other state net operating loss | 6.8 | Yes | Various | Various | ||||||||||||||||||||||
| Foreign net operating losses (various jurisdictions) | 4.0 | No | Various | Various | ||||||||||||||||||||||
| Federal research credit | 12.5 | Yes | 2036 | 2045 | ||||||||||||||||||||||
| Utah research credit | 3.8 | No | 2025 | 2039 | ||||||||||||||||||||||
| California research credit | 5.8 | No | Indefinite | Indefinite | ||||||||||||||||||||||
The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement criteria as set forth in ASC 740. As of December 31, 2025, the Company had net unrecognized tax benefits of $22.1 million. The Company’s gross unrecognized tax benefits as of the years ended December 31, 2025, 2024, and 2023, and the changes in those balances are as follows:
| Years Ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Unrecognized tax benefits at the beginning of period | $ | 51.7 | $ | 48.1 | $ | 43.9 | |||||||||||
| Gross increases - current year tax positions | 0.8 | 1.0 | 0.8 | ||||||||||||||
| Gross increases - prior year tax positions | 2.1 | 2.6 | 3.6 | ||||||||||||||
| Gross decreases - prior year tax positions | — | — | (0.2) | ||||||||||||||
Gross decreases - statute lapse | (3.0) | — | — | ||||||||||||||
| Gross decreases - settlements | (29.5) | — | — | ||||||||||||||
| Unrecognized tax benefits at end of year | $ | 22.1 | $ | 51.7 | $ | 48.1 | |||||||||||
In 2022, the Company filed a U.S. federal tax return reflecting an uncertain tax position that was not recorded as a tax benefit or deferred tax asset in the financial statements. The related unrecognized tax benefit of $12.5 million, however, has been included in the table above. Interest and penalties related to uncertain tax positions are included as a component of Income tax (benefit) expense and all other interest and penalties are included as a component of Other income (expense) in the Consolidated Statements of Operations. As of December 31, 2024, and 2023, the Company had accrued $8.8 million, and $6.4 million of interest and penalties, respectively, which are included in income tax expense. The Company had no accrual for interest and penalties as of December 31, 2025. For the year ended December 31, 2025, unrecognized tax benefits, if recognized, would have an immaterial effect on the effective tax rate, while for the years ended December 31, 2024, and 2023, $32.7 million and $30.2 million, respectively, of the unrecognized tax benefits, if recognized, would affect the effective tax rate.
The Company is subject to taxation in the United States and various other state and foreign jurisdictions. As of December 31, 2025, the statutes of limitations for the assessment of federal, state, and foreign income taxes are closed for the years before 2016, 2008, and 2016, respectively. During the year ended December 31, 2025, the Company was notified by the Joint Committee on Taxation that it had concluded its review of these tax refund claims. The Company remeasured or released the unrecognized benefits, resulting in a discrete tax benefit of $32.5 million, of which $29.5 million related to a refund claim and $3.0 million related to the lapse of the statute of limitations.
One Big Beautiful Bill Act
On July 4, 2025, the “One Big Beautiful Bill Act” was signed into law, enacting significant changes to the U.S. federal tax code. The Company evaluated the potential effects of this legislation on its financial position and results of operations. Based on this assessment, the new law did not have a material impact on the Company's current or net deferred tax balances.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Aug 13, 2020 | |
| 2019 | Aug 13, 2019 | |
| 2018 | Aug 24, 2018 | |
| 2017 | Aug 9, 2017 | |
| 2016 | Aug 10, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.