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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Operating activities:      
Net income (loss) $ 303,262 $ 214,985 $ (10,783)
Adjustments to reconcile net income (loss) to net cash provided by operating activities      
Depreciation 12,540 10,706 6,708
Amortization of right-of-use operating lease assets 1,542 0 0
Amortization of patents 1,912 1,822 1,641
Amortization of premium (discount) on investments, net (7,485) (1,013) 6,752
Amortization of debt issuance costs 1,942 1,810 1,616
Amortization of convertible senior notes discount 37,338 33,363 30,920
Amortization of long-term financing liability for leased facility 0 0 3,659
Stock-based compensation expense 146,574 131,312 85,975
Gain on investment in Regulus Therapeutics, Inc. 0 0 (374)
Loss on extinguishment of financing liability for leased facility 0 0 7,689
Loss on early retirement of debt 21,865 0 0
Deferred income taxes (including benefit from valuation allowance release) (7,096) (290,516) 0
Non-cash losses related to patents, licensing, property, plant and equipment and investments 2,034 1,012 3,302
Changes in operating assets and liabilities:      
Contracts receivable (47,674) 47,595 45,088
Inventories (5,411) 1,400 (2,493)
Other current and long-term assets (44,659) (29,348) (58,367)
Long-term income tax receivable 8,418 (223) (9,114)
Accounts payable (16,343) (655) 1,784
Income taxes 31,656 (710) 435
Accrued compensation 8,089 4,117 965
Accrued liabilities and deferred rent 16,499 (17,023) 28,564
Deferred contract revenue (119,283) 494,254 30,182
Net cash provided by operating activities 345,720 602,888 174,149
Investing activities:      
Purchases of short-term investments (1,946,726) (1,794,735) (877,810)
Proceeds from sale of short-term investments 1,951,734 882,824 557,369
Purchases of property, plant and equipment (30,905) (13,608) (34,764)
Acquisition of licenses and other assets, net (5,377) (4,044) (3,093)
Purchase of strategic investments (10,000) 0 (2,500)
Proceeds from the sale of Regulus Therapeutics, Inc. 0 0 2,507
Net cash (used in) provided by investing activities (41,274) (929,563) (358,291)
Financing activities:      
Proceeds from equity, net 119,657 27,900 22,931
Payments of tax withholdings related to vesting of employee stock awards and exercise of employee stock options (19,242) 0 0
Proceeds from the issuance of 0.125 percent convertible senior notes 109,500 0 0
0.125 percent convertible senior notes issuance costs (10,428) 0 0
Proceeds from issuance of warrants 56,110 0 0
Purchase of note hedges (108,684) 0 0
Repurchases and retirements of common stock (34,392) 0 0
Principal payments on debt and capital lease obligations (12,500) 0 (3,599)
Proceeds from issuance of common stock in Akcea Therapeutics, Inc. from its initial public offering, net of underwriters' discount 0 0 110,438
Proceeds from building mortgage debt, net of issuance costs 0 0 59,750
Proceeds from the sale of Akcea Therapeutics, Inc. common stock to Novartis in a private placement 0 0 50,000
Offering costs paid 0 0 (2,037)
Payment to settle financing liability for leased facility 0 0 (80,133)
Net cash provided by financing activities 100,021 475,865 229,087
Net increase in cash and cash equivalents 404,467 149,190 44,945
Cash and cash equivalents at beginning of year 278,820 129,630 84,685
Cash and cash equivalents at end of year 683,287 278,820 129,630
Supplemental disclosures of cash flow information:      
Interest paid 9,870 9,592 8,035
Income taxes paid 9,041 0 0
Supplemental disclosures of non-cash investing and financing activities:      
Right-of-use assets obtained in exchange for lease liabilities 14,178 0 0
Amounts accrued for capital and patent expenditures 3,126 4,428 1,983
Purchases of property, plant and equipment included in long-term obligations 0 3,350 0
0.125 percent convertible senior notes principal issued related to our December 2019 debt exchange/issuance 439,326 0 0
1 percent convertible senior notes principal extinguished related to our December 2019 debt exchange 375,590 0 0
Biogen [Member]      
Financing activities:      
Proceeds from the issuance of common stock 0 447,965 0
Novartis [Member]      
Financing activities:      
Proceeds from the issuance of common stock $ 0 $ 0 $ 71,737