Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

The components of loss before income taxes are presented below:



	Year Ended December 31,
	2018			2017			2016
Domestic	$	(443,337	)	$	(71,343	)	$	(157,067	)
Foreign	(92,897		)	(58,357		)	(37,084		)
Loss before income taxes	$	(536,234	)	$	(129,700	)	$	(194,151	)

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are presented below:



	Year Ended December 31,
	2018			2017			2016
United States federal income taxes:
Current	$	(31	)	$	27		$	(17	)
Deferred	(11,855		)	(523		)	1,396
Foreign income taxes:
Current	(332		)	(379		)	(393		)
Deferred	(5,068		)	(2,269		)	(5,177		)
State income taxes:
Current	113			—			—
Deferred	(4,355		)	264			314
Income tax benefit	$	(21,528	)	$	(2,880	)	$	(3,877	)

Schedule of Effective Income Tax Rate Reconciliation

Income tax benefit for the years ended December 31, 2018, 2017 and 2016 differed from amounts computed by applying the applicable United States federal corporate income tax rate of 21% for 2018, and 34% for years prior to 2018, to loss before income taxes as a result of the following:



	2018			2017			2016
Computed statutory income tax benefit	$	(112,609	)	$	(44,098	)	$	(66,011	)
State and provincial income tax benefit, net of federal income taxes	(24,724		)	(3,294		)	(7,905		)
Nondeductible stock based compensation	1,834			4,147			3,321
Nondeductible officer compensation	294			476			—
Gain on dividend distribution of AquaBounty common stock	—			3,965			—
Impairment of goodwill	—			4,700			—
Research and development tax incentives	(1,088		)	(1,166		)	(6,350		)
Acquisition and internal restructuring transaction costs	52			354			571
Provisional impact of the Tax Act	—			85,288			—
Enacted changes in foreign tax rates and foreign tax reforms	—			2,138			—
Reacquired in-process research and development	2,696			—			—
Change in deferred state tax rate	8,666			—			—
United States-foreign rate differential	3,017			5,410			3,463
Other, net	(486		)	(64		)	1,485
	(122,348		)	57,856			(71,426		)
Change in valuation allowance for deferred tax assets	100,820			(60,736		)	67,549
Total income tax benefit	$	(21,528	)	$	(2,880	)	$	(3,877	)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that comprise the deferred tax assets and liabilities as of December 31, 2018 and 2017, are as follows:



	2018			2017
Deferred tax assets
Allowance for doubtful accounts	$	1,490		$	1,300
Inventory	614			489
Equity securities and investments in affiliates	30,241			17,510
Intangible assets	71,205			—
Accrued liabilities	4,412			3,131
Stock-based compensation	29,297			26,936
Deferred revenue	16,297			61,785
Research and development tax credits	11,597			11,385
Net operating and capital loss carryforwards	148,411			111,453
Total deferred tax assets	313,564			233,989
Less: Valuation allowance	308,113			215,582
Net deferred tax assets	5,451			18,407
Deferred tax liabilities
Property, plant and equipment	528			237
Intangible assets	—			33,790
Long-term debt	12,136			—
Total deferred tax liabilities	12,664			34,027
Net deferred tax liabilities	$	(7,213	)	$	(15,620	)

Summary of Valuation Allowance

Activity within the valuation allowance for deferred tax assets during the years ended December 31, 2018, 2017 and 2016 was as follows:



	2018			2017			2016
Valuation allowance at beginning of year	$	215,582		$	256,165		$	190,174
Increase (decrease) in valuation allowance as a result of
Mergers and acquisitions, net	418			—			(1,416		)
Current year operations	122,853			26,619			67,549
Adoption of ASC 606	(7,477		)	—			—
Adoption of ASU 2016-09	—			17,843			—
Provisional impact of the Tax Act	—			(87,473		)	—
Equity component of long-term debt	(13,367		)	—			—
Change in deferred state tax rate	(8,666		)	—			—
Changes in foreign tax rates and foreign tax reforms	—			1,327			—
Foreign currency translation adjustment	(1,230		)	1,101			(142		)
Valuation allowance at end of year	$	308,113		$	215,582		$	256,165