Company: ARVN
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001655759-25-000085
Chunk: 86

Company: ARVINAS, INC.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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31, 20242,311,291 $42.25 Granted2,229,467 $17.66 Vested(805,578)$45.35 Forfeited(146,054)$44.92 Unvested RSUs as of March 31, 20253,589,126 $26.17 The weighted-average grant date fair value per share of RSUs granted during the three months ended March 31, 2025 and 2024 was $17.66 and $46.55, respectively. The total intrinsic value of RSUs released during the three months ended March 31, 2025 and 2024 was $14.1 million and $9.4 million, respectively. The total fair value of RSUs vested during the three months ended March 31, 2025 and 2024 was $36.5 million and $8.1 million, respectively.

10. Income Taxes 

For the three months ended March 31, 2025, the Company recognized income tax expense of $0.2 million, resulting in an effective tax rate of 0.2%, as compared to income tax expense of $0.1 million, resulting in an effective tax rate of (0.2)%, in the same period for 2024. The primary reconciling items between the federal statutory rate of 21.0% for the three months ended March 31, 2025 and the Company’s overall effective tax rate of 0.2% was the effect of equity compensation and the valuation allowance recorded against the full amount of its net deferred tax assets. The primary reconciling items between the federal statutory rate of 21.0% for the 

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three months ended March 31, 2024 and the Company’s overall effective tax rate of (0.2)% was the effect of equity compensation and the valuation allowance recorded against the full amount of its net deferred tax assets.

A valuation allowance is established when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. The Company continues to establish a valuation allowance against the full amount of its net deferred tax assets since it is more likely than not that benefits will not be realized, including those benefits created in the current year. This assessment is based on the Company's historical cumulative losses, which provide strong objective