XML 81 R45.htm IDEA: XBRL DOCUMENT

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Provision for (Benefit from) Income Taxes Based on Loss Before Income Taxes

The provision for (benefit from) income taxes was based on loss before income taxes as follows:


	Years Ended December 31
	2019		2018		2017
U.S. Source	$	(182,112)	$	(128,700)	$	(19,461)
Non-U.S. Source	87,301		(14,005)		(16,414)
Loss before income taxes	$	(94,811)	$	(142,705)	$	(35,875)

Schedule of Components of Provision for (Benefit From) Income Taxes

The U.S. and foreign components of the provision for (benefit from) income taxes were as follows:


	Years Ended December 31,
	2019		2018		2017
Provision for (benefit from) current income tax expense:
Federal	$	5,127	$	(2,660)	$	29,848
State and local	1,331		588		2,880
Foreign	5,339		4,956		3,975
	11,797		2,884		36,703
Provision for (benefit from) deferred income taxes:
Federal	(58,311)		(72,074)		12,446
State and local	(5,394)		(994)		32,336
Foreign	(19,055)		4,690		(318)
	(82,760)		(68,378)		44,464
Provision for (benefit from) income taxes	$	(70,963)	$	(65,494)	$	81,167

Schedule of Reconciliation of Statutory Federal Income Tax Rate to Company's Effective Income Tax Rate

The following is a reconciliation of the statutory federal income tax (benefit) expense to the Company’s effective tax rate:


	December 31,
	2019		2018		2017
Federal statutory income tax benefit	$	(19,911)	$	(29,968)	$	(12,556)
State and local taxes	(2,784)		(276)		7,282
Orphan Drug & General Business Credit	(43,124)		(66,451)		(33,683)
Stock compensation expense	239		(5,647)		(6,843)
Changes in the fair value of contingent consideration	(1,804)		(2,361)		1,099
Foreign Source Income Subject to US Tax	(52)		6,543		30,181
Foreign tax rate differential ⁽¹⁾	(30,639)		12,583		9,403
Section 162(m) limitation	8,294		7,440		9,492
Tax Cuts and Jobs Act of 2017	—		—		42,338
Tax Reserves	12,123		8,545		2,262
Other	(1,132)		(423)		(2,940)
Valuation allowance/deferred benefit	7,827		4,521		35,132
Effective income tax (benefit) expense	$	(70,963)	$	(65,494)	$	81,167

(1) For the year ended December 31, 2019, the foreign rate differential included foreign local tax expense which was at an effective rate lower than the U.S. statutory rate and was offset by the benefit of the valuation allowance release against the deferred tax assets of the Company’s Dutch subsidiary of $29.6 million.

Schedule of Components of Net Deferred Tax Assets

The significant components of the Company’s net deferred tax assets were as follows:


	December 31,
	2019		2018
Net deferred tax assets:
Net operating loss carryforwards	$	32,181	$	42,007
Tax credit carryforwards	508,560		466,066
Accrued expenses, reserves, and prepaids	61,807		55,041
Intangible assets	29,413		18,734
Stock-based compensation	42,873		35,966
Lease liabilities	11,470		—
Inventory	6,290		12,859
Other	575		278
Valuation allowance	(86,197)		(107,928)
Total deferred tax assets	606,972		523,023

Joint venture basis difference	(993)		(1,010)
Acquired intangibles	(1,647)		(6,508)
Deferred revenue	(3,003)		(4,480)
Convertible notes discount	(2,364)		(5,157)
ROU assets	(10,258)		—
Property, plant and equipment	(46,642)		(44,916)
Total deferred tax liabilities	(64,907)		(62,071)
Net deferred tax assets	$	542,065	$	460,952

Summary of Expiration of not Utilized Net Operating Loss and Tax Credit Carryforwards

As of December 31, 2019, the Company had the following net operating loss and tax credit carryforwards, which if not utilized, will expire as follows:


Type	Amount		Year
Federal net operating loss carryforwards	$	144,566	2028 – 2037
Federal R&D and orphan drug credit carryforwards	$	507,292	2030 – 2038
State net operating loss carryforwards	$	161,341	2020 – 2039
Dutch net operating loss carryforwards	$	89,064	2021 – 2025

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2019 and 2018, is as follows:


	December 31,
	2019		2018
Balance at beginning of period	$	147,445	$	113,486
Additions based on tax positions related to the current year	19,287		30,811
(Deletions) Additions for tax positions of prior years	2,016		3,148
Balance at end of period	$	168,748	$	147,445