Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for the years ended December 31, 2020 and 2019 consisted of the following (in millions):


	Year Ended December 31,
	2020		2019		2018
Current tax provision
Federal	$	(1.9)	$	—	$	—
State	(1.3)		(0.5)		(0.1)
Foreign	(3.3)		(0.2)		—
	(6.5)		(0.7)		(0.1)

Deferred tax provision
Federal	(0.9)		5.0		2.0
State	2.7		2.2		1.0
Foreign	—		—		—
	1.8		7.2		3.0

Benefit (expense) from income taxes	$	(4.7)	$	6.5	$	2.9

Schedule of Effective Income Tax Rate Reconciliation

For the years ended December 31, 2020, 2019, and 2018, the effective income tax rate differs from the U.S. federal statutory income tax rate as explained below:


	Year Ended December 31,
	2020		2019		2018
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal benefit	(4.2)	%	1.6	%	5.8	%
Foreign taxes	(10.5)	%	—	%	—	%
Income allocable to NCI not subject to tax	(0.2)	%	(14.8)	%	(17.4)	%
Non-deductible stock compensation	(42.1)	%	—	%	—	%
Impact of GAAP basis shifts	(9.1)	%	—	%	—	%
R&D credit	3.2	%	—	%	—	%
Other	(0.3)	%	0.5	%	(0.3)	%
Valuation allowance	27.4	%	(0.6)	%	—	%
Effective income tax rate	(14.8)	%	7.7	%	9.1	%

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 2020 and 2019, the components of deferred tax assets and liabilities are as follows (in millions):


	Year Ended December 31,
	2020		2019
Deferred tax assets
Investment in ZoomInfo Holdings LLC	$	649.6	$	—
Net operating loss carryforwards	5.9		4.9
Interest expense carryforward	9.7		7.2
Credit carryforwards	3.1		1.3
Other	—		—
Total deferred tax assets	$	668.3	$	13.4

Deferred tax liabilities
Investment in ZoomInfo Tech LLC	$	22.6	$	94.0
Total deferred tax liabilities	$	22.6	$	94.0

Less valuation allowance	$	(238.3)	$	(2.2)
Net deferred tax asset (liability)	$	407.4	$	(82.8)