Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The components of loss from continuing operations before income taxes are presented below:



	Year Ended December 31,
	2019			2018			2017
Domestic	$	(205,413	)	$	(428,410	)	$	(24,965	)
Foreign	(3,274		)	(1,332		)	(53,402		)
Loss from continuing operations before income taxes	$	(208,687	)	$	(429,742	)	$	(78,367	)

Components of Income Tax Expense (Benefit)

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



	Year Ended December 31,
	2019			2018			2017
United States federal income taxes:
Current	$	—		$	(31	)	$	27
Deferred	(561		)	(11,855		)	(523		)
Foreign income taxes:
Current	34			68			(4		)
Deferred	(230		)	635			2,308
State income taxes:
Current	—			113			—
Deferred	(173		)	(4,355		)	264
Income tax expense (benefit) from continuing operations	$	(930	)	$	(15,425	)	$	2,072

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) from continuing operations for the years ended December 31, 2019, 2018 and 2017 differed from amounts computed by applying the applicable United States federal corporate income tax rate of 21% for 2019 and 2018, and 34% for 2017, to loss before income taxes as a result of the following:



	2019			2018			2017
Computed statutory income tax benefit from continuing operations	$	(43,824	)	$	(90,246	)	$	(26,645	)
State and provincial income tax benefit, net of federal income taxes	(7,298		)	(23,347		)	(1,888		)
Nondeductible stock based compensation	10,303			4,696			3,391
Nondeductible officer compensation	595			294			476
Gain on dividend distribution of AquaBounty common stock	—			—			3,965
Impairment of goodwill	273			—			4,700
Research and development tax incentives	(1,772		)	(185		)	(359		)
Acquisition and internal restructuring transaction costs	260			52			354
Provisional impact of the Tax Act	—			—			85,288
Enacted changes in foreign tax rates and foreign tax reforms	—			—			2,021
Reacquired in-process research and development	—			2,696			—
Change in deferred state tax rate	—			8,666			—
United States-foreign rate differential	(76		)	215			410
Other, net	(72		)	(3,517		)	(189		)
	(41,611		)	(100,676		)	71,524
Change in valuation allowance for deferred tax assets	40,681			85,251			(69,452		)
Total income tax expense (benefit) from continuing operations	$	(930	)	$	(15,425	)	$	2,072

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that comprise the deferred tax assets and liabilities included in continuing operations as of December 31, 2019 and 2018, are as follows:



	2019			2018
Deferred tax assets
Allowance for doubtful accounts	$	2,140		$	1,490
Inventory	415			614
Equity securities and investments in affiliates	11,933			30,241
Property, plant and equipment	1,830			—
Intangible assets	85,308			78,858
Accrued liabilities	3,385			4,412
Lease liabilities	10,035			—
Stock-based compensation	19,389			28,885
Deferred revenue	14,876			16,297
Research and development tax credits	9,686			10,558
Investments in subsidiaries included in discontinued operations	8,592			—
Net operating and capital loss carryforwards	196,663			129,291
Total deferred tax assets	364,252			300,646
Less: Valuation allowance	349,008			292,217
Net deferred tax assets	15,244			8,429
Deferred tax liabilities
Property, plant and equipment	—			149
Right-of-use assets	8,091			—
Intangible assets	—			—
Long-term debt	9,987			12,136
Total deferred tax liabilities	18,078			12,285
Net deferred tax liabilities included in continuing operations	$	(2,834	)	$	(3,856	)

Summary of Valuation Allowance

Activity within the valuation allowance for deferred tax assets included in continuing operations during the years ended December 31, 2019, 2018 and 2017 was as follows:



	2019			2018			2017
Valuation allowance at beginning of year	$	292,217		$	211,078		$	253,549
Increase (decrease) in valuation allowance as a result of
Mergers and acquisitions, net	—			418			—
Deconsolidation of AquaBounty	(3,504		)	—			—
Establishment of deferred taxes for subsidiaries included in discontinued operations	8,592			—			—
Current year continuing operations	40,681			107,284			17,735
Discontinued operations treated as asset sales	10,585			3,832			6,940
Adoption of ASC 842	512			—			—
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	—			—			1,494
Foreign currency translation adjustment	(75		)	(885		)	990
Valuation allowance at end of year	$	349,008		$	292,217		$	211,078