v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income taxes receivable (payable)
Array’s current income taxes balances at December 31, 2025 and 2024, were as follows:
December 31,20252024
(Dollars in thousands)  
Federal income taxes payable$(3,421)$(1,261)
Net state income taxes receivable (payable)(292)123 
Income tax expense (benefit)
Income tax expense (benefit) from continuing operations is summarized as follows:
Year Ended December 31,202520242023
(Dollars in thousands)   
Current   
Federal$277 $245 $(1,727)
State6,307 (2,786)2,064 
Deferred
Federal16,567 (11,704)11,288 
Federal - valuation allowance adjustment(35,341)— — 
State24,653 (5,011)21,230 
State - valuation allowance adjustment(43,611)— — 
Total income tax expense (benefit)$(31,148)$(19,256)$32,855 
Array's cash tax payments (refunds) made to (received from) significant jurisdictions are as follows:
Year Ended December 31,202520242023
(Dollars in thousands)   
Federal$246,817 $34,567 $879 
Maine— — 464 
Oregon— — 975 
Virginia— — 740 
Other4,954 1,743 216 
Total income taxes paid (refunded)$251,771 $36,310 $3,274 
Income tax reconciliation
Year Ended December 31,202520242023
 AmountRateAmountRateAmountRate
(Dollars in thousands)      
Statutory federal income tax expense and rate$29,635 21.0 %$(20,941)21.0 %$8,659 21.0 %
State income taxes, net of federal benefit1
(14,617)(10.4)(3,881)3.9 17,261 41.9 
Change in unrecognized tax benefits4,508 3.2 (2,434)2.4 (450)(1.1)
Change in federal valuation allowance2
(44,499)(31.5)9,165 (9.2)8,350 20.3 
Compensation adjustments(285)(0.2)281 (0.3)160 0.4 
Dividends-received deduction(6,654)(4.7)(2,008)2.0 (1,202)(2.9)
Other differences, net764 0.5 562 (0.5)77 0.1 
Total income tax expense (benefit) and rate$(31,148)(22.1)%$(19,256)19.3 %$32,855 79.7 %
1State income taxes, net of federal benefit, includes adjustments to state valuation allowances. State taxes in 2025 include tax benefits of $34.5 million related to expected realization of state tax attributes by the T-Mobile transaction as well as the sale of certain wireless spectrum licenses classified as held for sale, partially offset by $15.5 million of discrete expense related to state apportionment changes following the disposal of the wireless business. State taxes in 2023 include discrete valuation allowance adjustments that did not recur in 2024 or 2025.
The states that make up the majority of state income tax benefit in 2025 include Wisconsin and Illinois which are partially offset by California state tax expense. The states that make up the majority of state income taxes in 2024 include Wisconsin, California and Oregon. The states that make up the majority of state income taxes in 2023 include Wisconsin and Illinois.
2Change in federal valuation allowance in 2025 is due primarily to deferred tax assets that are now likely to be realized by the taxable income generated by the T-Mobile transaction, as well as the pending sale of certain wireless spectrum licenses classified as held for sale. The change in federal valuation allowance in 2024 and 2023 was due primarily to annual interest expense from partnership investments that carryforward but were not deemed likely to be realized.
Deferred income tax assets and liabilities
Significant components of Array’s deferred income tax assets and liabilities at December 31, 2025 and 2024, were as follows:
December 31,20252024
(Dollars in thousands)  
Deferred tax assets  
Net operating loss (NOL) carryforwards$129,266 $142,494 
Lease liabilities134,832 237,797 
Contract liabilities— 58,075 
Interest expense carryforwards17,400 124,888 
Asset retirement obligation48,863 84,416 
Other53,768 64,609 
Total deferred tax assets384,129 712,279 
Less valuation allowance(114,580)(180,827)
Net deferred tax assets269,549 531,452 
Deferred tax liabilities
Property, plant and equipment70,588 389,459 
Licenses/intangibles379,083 420,847 
Partnership investments77,534 191,171 
Lease assets122,518 223,603 
Other1,869 34,482 
Total deferred tax liabilities651,592 1,259,562 
Net deferred income tax liability$382,043 $728,110 
Presented in the Consolidated Balance Sheet as:
Deferred income tax liability, net$387,030 $728,229 
Other assets and deferred charges(4,987)(119)
Net deferred income tax liability$382,043 $728,110 
Deferred tax valuation allowance
A summary of Array’s deferred tax asset valuation allowance is as follows:
 202520242023
(Dollars in thousands)   
Balance at beginning of year$180,827 $145,839 $114,850 
Charged (credited) to Income tax expense - continuing operations(78,952)11,794 15,356 
Charged to Income tax expense - discontinued operations12,705 23,194 15,633 
Balance at end of year$114,580 $180,827 $145,839 
Income tax unrecognized benefits summary
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 202520242023
(Dollars in thousands)  
   
Unrecognized tax benefits balance at beginning of year$28,807 $35,713 $35,540 
Additions for tax positions of current year11,138 6,113 9,032 
Additions for tax positions of prior years239 — — 
Reductions for tax positions of prior years(1,902)(6,276)(2,992)
Reductions for settlements of tax positions— (11)— 
Reductions for lapses in statutes of limitations(3,746)(6,732)(5,867)
Unrecognized tax benefits balance at end of year$34,536 $28,807 $35,713