Company: ARVN
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001655759-25-000016
Chunk: 44

Company: ARVINAS, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 16
Chunk 44
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 Collaboration Agreement and the mandatory capitalization of qualified research and development expenses incurred on or after January 1, 2022, which, upon recognition for tax purposes, would create additional deferred tax assets. Under the Tax Cuts and Jobs Act of 2017, qualified research expenses incurred after 2021 are no longer immediately deductible for tax purposes and instead must be capitalized and amortized over at least five years for tax purposes.All of the Company’s losses before income taxes were generated in the United States.A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate for the years ended December 31, 2024, 2023 and 2022 were as follows: Year ended December 31,202420232022Federal statutory rate21.0 %21.0 %21.0 %State taxes7.8 %18.4 %(1.6)%Federal research tax credit4.6 %7.6 %3.4 %Other— %— %(0.1)%Uncertain tax positions(0.2)%(0.5)%(1.2)%Return to provision(0.5)%(0.2)%3.6 %Stock compensation(1.1)%(1.2)%(1.4)%Change in valuation allowance(31.9)%(45.4)%(31.7)%(0.3)%(0.3)%(8.0)%

F - 24

Deferred income taxes represent the tax effect of transactions that are reported in different periods for financial and tax reporting purposes. Temporary differences and carryforwards that give rise to a significant portion of the deferred income tax benefits and liabilities were as follows as of December 31, 2024 and 2023: December 31,(dollars in millions)20242023Deferred income tax assets:Deferred revenue$155.6 $151.2 Capitalized research and development161.3 93.6 Stock compensation60.1 43.4 Tax credits55.8 43.8 Loss carryforwards31.7 65.8 Other8.3 13.3 Total deferred income tax assets472.8 411.1 Deferred income tax liabilities:Property, equipment and leasehold improvements(1.4)(2.4)Other— (0.8)Total deferred income tax liabilities(1.4)(3.2)Less valuation