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Income Taxes
9 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

For the three months ended September 30, 2017 and 2016, the Company recorded a benefit for income taxes of $66.6 million and a provision for income taxes of $0.2 million, respectively. The worldwide effective income tax rates for the Company for the three months ended September 30, 2017 and 2016 was 68.83% and (0.2)%, respectively.

For the nine months ended September 30, 2017 and 2016, the Company recorded a benefit for income taxes of $89.6 million and a provision for income taxes of $0.2 million, respectively. The worldwide effective income tax rates for the Company for the nine months ended September 30, 2017 and 2016 was 14.5% and 4.1%, respectively. For the three and nine months ended September 30, 2017, the Company’s benefit for income taxes is primarily attributable to a reduction in the Company’s recorded valuation allowance against its deferred tax assets as a result of the commencement of amortization of IPR&D associated with Vabomere upon approval by the FDA, which resulted in a discrete benefit of $66.7 million, and the impairment of IPR&D associated with MDCO-700, which resulted in a discrete benefit of $23.0 million. For further details regarding the approval of Vabomere and impairment of IPR&D associated with MDCO-700 see Note 9, “Intangible Assets and Goodwill.”

The Company considers all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is needed to reduce its deferred tax assets to the amount that is more likely than not to be realized. The Company placed significant weight on the fact that the Company expects to be in a cumulative net book loss for the three-year period ending December 31, 2017 in recording valuation allowances on substantial portions of its deferred tax assets as of September 30, 2017.

The Company will continue to evaluate its ability to realize its deferred tax assets on a periodic basis and will adjust such amounts in light of changing facts and circumstances including, but not limited to, future projections of taxable income, tax legislation, rulings by relevant tax authorities, the progress of ongoing tax audits and the regulatory approval of products currently under development. Any additional changes to the valuation allowance recorded on deferred tax assets in the future would impact the Company’s income taxes.