Collaboration Agreements (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Total Consolidated Net Revenues from Strategic Collaborators

The following tables summarize the effects of adopting ASC 606 on our consolidated financial statements at December 31, 2019, and for the year ended December 31, 2019 (in thousands, except per share data):



	As of December 31, 2019
Consolidated Balance Sheet	As reported under ASC 606			Adjustments			Balance without adoption of ASC 606
Deferred revenue, current	$	63,310		$	(8,054	)	$	55,256
Deferred revenue, non-current	138,995			4,012			143,007
Accumulated deficit	(1,496,454		)	6,785			(1,489,669		)



	Year Ended December 31, 2019
Consolidated Statement of Operations	As reported under ASC 606			Adjustments		Amount without adoption of ASC 606
Revenue:
Collaboration revenue	$	42,803		$	2,767	$	45,570
Collaboration revenue from related party	5,233			32,002		37,235
Total revenue	60,209			34,769		94,978
Loss from operations	(545,720		)	34,769		(510,951		)
Loss before income taxes	(514,716		)	34,769		(479,947		)
Net loss	(514,021		)	34,769		(479,252		)
Net loss per share - basic and diluted	(1.55		)	0.10		(1.45		)

The cumulative effect of applying both ASC 606 and ASC 842 on our consolidated balance sheets as of January 1, 2019 was as follows (in thousands):



	Balance as of December 31, 2018 ⁽¹⁾			Effect of the Adoption of						Balance as of January 1, 2019
	Balance as of December 31, 2018 ⁽¹⁾			ASC 842			ASC 606			Balance as of January 1, 2019
Assets:
Accounts receivable	$	11,686		$	—		$	(2,738	)	$	8,948
Prepaid expenses and other current assets	28,399			(300		)	—			28,099
Property and equipment, net	211,977			(2,483		)	—			209,494
Right-of-use assets, operating leases	—			63,334			—			63,334
Total assets	$	1,962,149		$	60,551		$	(2,738	)	$	2,019,962
Liabilities and Shareholders’ Equity:
Deferred revenue	$	109,056		$	—		$	(27,281	)	$	81,775
Other current liabilities	3,464			5,867			—			9,331
Deferred revenue, non-current	165,352			—			(3,441		)	161,911
Operating lease liabilities, non-current	—			64,250			—			64,250
Finance lease liabilities, non-current	—			37,718			—			37,718
Deferred lease obligation, non-current	10,006			(10,006		)	—			—
Lease financing obligation	33,489			(33,489		)	—			—
Accumulated deficit	(1,006,627		)	(3,789		)	27,984			(982,432		)
Total liabilities and shareholders’ equity	$	1,962,149		$	60,551		$	(2,738	)	$	2,019,962

_______

⁽¹⁾As reported in our 2018 Annual Report on Form 10-K.

The following table summarizes our total consolidated net revenue from our strategic collaborators for the periods presented (in thousands):



	Years Ended
Collaboration Revenue by Strategic Collaborator:	December 31, 2019 as reported (under ASU 606)		December 31, 2019 without adoption of 606 (under ASC 605)		December 31, 2018 as reported (under ASC 605)
Merck	$	36,608	$	38,977	$	66,082
AstraZeneca	5,233		37,235		45,993
Vertex	6,195		6,593		10,437
Total collaboration revenue	$	48,036	$	82,805	$	122,512

Changes in Balances of Receivables and Contract Liabilities

The following table presents changes in the balances of our receivables and contract liabilities related to our strategic collaboration agreements during the year ended December 31, 2019 (in thousands):



	January 1, 2019		Additions		Deductions			December 31, 2019
Contract Assets:
Accounts receivable	$	4,612	$	11,890	$	(14,530	)	$	1,972
Contract Liabilities:
Deferred revenue	$	240,924	$	10,591	$	(51,987	)	$	199,528

During the year ended December 31, 2019, we recognized the following revenue as a result of the change in the contract liability balances related to our collaboration agreements (in thousands):



Revenue recognized in the period from:	Year Ended December 31, 2019
Amounts included in contract liabilities at the beginning of the period ⁽¹⁾	$	51,987

⁽¹⁾ We first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. If additional consideration is received on those contracts in subsequent periods, we assume all revenue recognized in the reporting period first applies to the beginning contract liability.