Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision expense (benefit) were as follows for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016		2015		2014
Current:
Federal	$	(1,785)	$	2,500	$	—
State		(600)		621		—
		(2,385)		3,121		—
Deferred:
Federal		3,554		32,378		(1,324)
State		(2,065)		815		(378)
Totals	$	(896)	$	36,314	$	(1,702)

Summary of Components of Net Deferred Tax Liabilities

The components of the Company’s net deferred tax liabilities and related valuation allowance are as follows as of December 31, 2016 and 2015 (in thousands):

	2016		2015
Deferred tax assets:
Amortization of intangibles	$	32,032	$	12,130
Deferred revenue		44,754		39,594
Derivative liability		—		1,267
Tax credit carryforwards		5,693		2,737
Net operating loss carryforwards and credits		6,237		1,247
Stock based compensation		3,898		2,493
Accrued expenses and other		1,558		636
Total deferred tax assets		94,172		60,104
Less valuation allowance		(81,039)		(39,605	)
Total deferred tax assets		13,133		20,499
Deferred tax liabilities:
Amortization of intangibles		(25,433)		—
Depreciation		(1,530)		(900)
Investment in common stock		(39,408)		(35,995)
Marketable securities		—		(32,945)
Other		—		—
Net deferred tax liabilities	$	(53,238)	$	(49,341	)

Summary of Reconciliation Between Federal Income Tax and Company Provision for Income Taxes

The reconciliation between U.S. federal income taxes at the statutory rate and the Company’s provision for income taxes are as follows for the years ended December 31 (in thousands):

	2016		2015
Income tax expense (benefit) at federal statutory rate	$	(23,357)		(4,740	)
State, net of federal tax benefit		(1,522)	$	(367	)
Other permanent differences		2,882		34
Incentive stock compensation		767		708
IgDraSol transaction		—		2,055
Other		120		(71)
Return to provision adjustment		(16)		—
Acquired in-process research and development		(2,360)		2,263
Change in State rate		(172)		(62)
Research tax credits		(2,318)		(3,141)
Uncertain tax positions		(1,836)		1,836
Prior year true-ups and carrybacks		4,133		—
Change in valuation allowance		22,783		37,799
Income tax provision	$	(896)	$	36,314

Summary of Reconciliation of Unrecognized Tax Expense (Benefits)

A reconciliation of the beginning and ending amount of unrecognized tax expense (benefits) is as follows (in thousands):

	Amount
Unrecognized tax benefits balance at December 31, 2015	$	1,836
Increase related to current year tax positions		444
Increase related to prior year tax positions		109
Settlements		—
Lapse in statute of limitations		—
Unrecognized tax benefits balance at December 31, 2016	$	2,389