Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Benefit From (Provision For) Income Taxes

The benefit from (provision for) income taxes in 2016, 2015 and 2014 consists of current and deferred federal, state and foreign taxes based on income as follows:

	2016			2015			2014
	(In thousands)
Current:
Federal	$	—		$	(5	)	$	1,494
State	(36		)	(187		)	(151		)
Foreign	(34		)	(216		)	44
	(70		)	(408		)	1,387
Deferred:
Federal	$	—		$	28,011		$	780
State	—			2,140			142
Foreign	—			—			—
	—			30,151			922
Total (provision for) benefit from taxes	$	(70	)	$	29,743		$	2,309

Schedule of Components of Loss From Continuing Operations

The components of loss from continuing operations attributable to The Medicines Company before income taxes consisted of:

	2016			2015			2014
	(In thousands)
Domestic	$	(117,575	)	$	(250,915	)	$	(1,115	)
International	(1,711		)	(758		)	(875		)
Total	$	(119,286	)	$	(251,673	)	$	(1,990	)

Schedule of Effective Income Tax Rate Reconciliation

The difference between tax expense and the amount computed by applying the statutory federal income tax rate of 35% in 2016, 2015, and 2014 to income before income taxes is as follows:

	Year Ended December 31,
	2016			2015			2014
	(In thousands)
Statutory rate applied to pre-tax loss	$	(41,750	)	$	(88,086	)	$	(697	)
(Deduct) add:
State income taxes, net of federal benefit	24			(1,269		)	(1,287		)
Foreign	442			287			491
Revaluation of contingent purchase price	8,393			9,740			1,153
Tax credits	(967		)	(305		)	(2,598		)
Lobbying costs	—			35			60
Acquisition costs	—			—			198
Meals and entertainment	613			824			501
Uncertain tax positions	(2,064		)	61			(101		)
Bargain purchase	—			(7,310		)	—
Loss on extinguishment of debt	1,403			—			—
Loss on ACC goodwill	11,834			—			—
Other	(776		)	1,223			2,680
Loss on sale of Hemostasis Business	(105,045		)	—			—
Deferred tax asset adjustment	4,793			—			(2,709		)
Valuation allowances	123,170			55,057			—
Income tax benefit	$	70		$	(29,743	)	$	(2,309	)

Schedule of Deferred Tax Assets and Liabilities

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

	December 31,
	2016			2015
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	230,775		$	115,370
Tax credits	20,973			17,853
Stock based compensation	28,268			23,768
Other	26,889			31,227
Total deferred tax assets	306,905			188,218
Valuation allowance	(162,892		)	(67,890		)
Total deferred tax assets net of valuation allowance	144,013			120,328
Deferred tax liabilities:
Fixed assets	$	(4,997	)	$	(5,011	)
Intangible assets	(81,877		)	(89,106		)
Convertible debt	(57,430		)	(26,506		)
Indefinite lived intangible assets	(89,701		)	(89,701		)
Total deferred tax liabilities	(234,005		)	(210,324		)
Net deferred tax liabilities	$	(89,992	)	$	(89,996	)

Summary of Operating Loss Carryforwards

At December 31, 2016, the Company has federal net operating loss carryforwards available to reduce taxable income and federal research and development tax credit carryforwards available to reduce future tax liabilities. They expire approximately as follows:

Year of Expiration	Federal Net Operating Loss Carryforwards		Federal Research and Development Tax Credit Carryforwards
	(In thousands)
2018 – 2026	$	—	$	—
2027	6,256		840
2028	38,954		2,108
2029	4,755		1,149
2030	1,030		1,162
2031	605		3,097
2032	1,533		3,666
2033	37,209		3,178
2034	4,353		1,861
2035	195,416		752
2036	324,640		1,715
	$	614,751	$	19,528

Summary of Tax Credit Carryforwards

At December 31, 2016, the Company has federal net operating loss carryforwards available to reduce taxable income and federal research and development tax credit carryforwards available to reduce future tax liabilities. They expire approximately as follows:

Year of Expiration	Federal Net Operating Loss Carryforwards		Federal Research and Development Tax Credit Carryforwards
	(In thousands)
2018 – 2026	$	—	$	—
2027	6,256		840
2028	38,954		2,108
2029	4,755		1,149
2030	1,030		1,162
2031	605		3,097
2032	1,533		3,666
2033	37,209		3,178
2034	4,353		1,861
2035	195,416		752
2036	324,640		1,715
	$	614,751	$	19,528

Summary of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

	Gross Unrecognized Tax Benefits
	(In thousands)
Balance at January 1, 2014	$	8,123
Additions related to current year tax positions	519
Reductions for prior year tax positions	(621		)
Balance at December 31, 2014	8,021
Additions related to current year tax positions	61
Balance at December 31, 2015	8,082
Additions related to current year tax positions	193
Reductions for prior year tax positions	(2,257		)
Balance at December 31, 2016	$	6,018