The cumulative effect of applying the new guidance of ASC 606 to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to Accumulated Deficit as of the adoption date. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to accounts on the Condensed Consolidated Balance Sheet as of January 1, 2018:

	As Reported								Adjusted
	December 31, 2017			Aldurazyme ⁽¹⁾		Tax Provision ⁽²⁾			January 1, 2018
Balance Sheet
Assets:
Accounts receivable, net	$	261,365		$	26,012	$	—		$	287,377
Deferred tax assets	$	399,095		$	—	$	(5,964	)	$	393,131
Total assets	$	4,633,125		$	26,012	$	(5,964	)	$	4,653,173
Equity:
Accumulated deficit	$	(1,637,548	)	$	26,012	$	(5,964	)	$	(1,617,500	)
Total liabilities and stockholders' equity	$	4,633,125		$	26,012	$	(5,964	)	$	4,653,173

(1)

This adjustment represents management’s estimate of the variable consideration to be earned on worldwide sales of Aldurazyme by Genzyme in excess of the product transfer revenue previously recognized for Genzyme’s ending inventory at December 31, 2017. The product transfer revenue previously recognized as revenue represents the fixed amount per unit of Aldurazyme that Genzyme was required to pay the Company if the product was unsold by Genzyme.

(2)

The adoption of ASC 606 primarily resulted in an acceleration of the variable consideration components of revenue as of December 31, 2017, which in turn generated additional deferred tax liabilities that ultimately reduced the Company's net deferred tax asset position. The tax provision amount has been calculated using the Company’s estimated statutory rate.

The impact of adoption on the Company’s Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2018 was as follows:

	Three Months Ended June 30, 2018
						Balance without
						Adoption of
	As Reported			Adjustments ⁽¹⁾		ASC 606

Net product revenues	$	367,786		$	48	$	367,834
Benefit from income taxes	$	(12,385	)	$	11	$	(12,374	)
Net loss	$	(16,792	)	$	37	$	(16,755	)

	Six Months Ended June 30, 2018
							Balance without
							Adoption of
	As Reported			Adjustments ⁽¹⁾			ASC 606

Net product revenues	$	736,885		$	(27,150	)	$	709,735
Benefit from income taxes	$	(19,040	)	$	(6,225	)	$	(25,265	)
Net loss	$	(60,941	)	$	(20,925	)	$	(81,866	)

(1)

The adoption of ASC 606 resulted in additional revenues recognized in the first half of 2018, which in turn generated additional deferred tax liabilities that reduced the Company's benefit from income taxes. The Benefit from Income Taxes amount has been calculated using the Company’s estimated statutory rate.

The impact of adoption on the Company’s Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2018 was as follows:

							Balance without
							Adoption of
	As Reported			Adjustments ⁽¹⁾			ASC 606
Net loss	$	(60,941	)	$	(20,925	)	$	(81,866	)
Deferred income taxes	$	(29,681	)	$	(6,225	)	$	(35,906	)
Changes in operating assets and liabilities:
Accounts receivable, net	$	(77,416	)	$	27,150		$	(50,266	)
Net cash used in operating activities	$	(76,366	)	$	—		$	(76,366	)

(1)

The adoption of ASC 606 resulted in decreased Net Loss and increased Accounts Receivable, Net due to additional revenues recognized in the first quarter of 2018, which in turn generated additional deferred tax liabilities that reduced the Company's net Deferred Tax Assets. The Deferred Income Taxes amount has been calculated using the Company’s estimated statutory rate.