Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of components of income (loss) before provision for (benefit from) income taxes

The components of income (loss) before provision for (benefit from) income taxes during the three years ended December 31, 2013 consisted of the following:

	2013			2012			2011
	(in thousands)
United States	$	(390,009	)	$	256,816		$	343,515
Foreign	(586,108		)	(269,197		)	(283,070		)
Income (loss) before provision for (benefit from) income taxes	$	(976,117	)	$	(12,381	)	$	60,445

Schedule of components of provision for (benefit from) income taxes

The components of the provision for (benefit from) income taxes during the three years ended December 31, 2013 consisted of the following:

	2013			2012			2011
	(in thousands)
Current taxes:
United States	$	(11,420	)	$	2,057		$	22,275
Foreign	1,084			(1,865		)	(561		)
State	2,136			1,902			8,655
Total current taxes	$	(8,200	)	$	2,094		$	30,369
Deferred taxes:
United States	$	(131,281	)	$	31,308		$	19,629
Foreign	(127,587		)	—			(32,692		)
State	(21,499		)	5,352			1,960
Total deferred taxes	$	(280,367	)	$	36,660		$	(11,103	)
Provision for (benefit from) income taxes	$	(288,567	)	$	38,754		$	19,266

Reconciliation of the provision for (benefit from) income taxes

The difference between the Company’s “expected” tax provision (benefit), as computed by applying the U.S. federal corporate tax rate of 35% to income (loss) before provision for (benefit from) income taxes, and actual tax is reconciled as follows:

	2013			2012			2011
	(in thousands)
Income (loss) before provision for (benefit from) income taxes	$	(976,117	)	$	(12,381	)	$	60,445
Expected tax provision (benefit)	(341,641		)	(4,333		)	21,156
State taxes, net of federal benefit	(19,268		)	7,075			10,624
Foreign rate differential	72,961			62,425			43,629
Tax credits	(16,775		)	(1,980		)	(51,086		)
Unbenefited operating losses	(43,570		)	(30,364		)	(6,286		)
Non-deductible expenses	9,614			3,198			1,953
Rate change	50,076			3,275			—
Other	36			(542		)	(724		)
Provision for (benefit from) income taxes	$	(288,567	)	$	38,754		$	19,266

Schedule of unrecognized tax benefits

Unrecognized tax benefits during the two years ended December 31, 2013 consisted of the following:

	2013			2012
	(in thousands)
Unrecognized tax benefits beginning of year	$	4,106		$	4,360
Gross change for current year positions	1,325			598
Increase for prior period positions	—			—
Decrease for prior period positions	(290		)	—
Decrease due to settlements and payments	—			—
Decrease due to statute limitations	(185		)	(852		)
Deconsolidation of Alios	(2,932		)	—
Unrecognized tax benefits end of year	$	2,024		$	4,106

Schedule of deferred tax assets and liabilities

Deferred tax assets and liabilities are determined based on the difference between financial statement and tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse. The components of the deferred taxes were as follows:

	As of December 31,
	2013			2012
	(in thousands)
Deferred tax assets:
Net operating loss	$	850,946		$	777,687
Tax credit carryforwards	180,380			147,074
Property and equipment	—			10,701
Intangible assets	26,105			63,353
Deferred revenues	25,158			44,867
Stock-based compensation	63,521			83,979
Inventories	26,278			56,564
Accrued expenses	52,470			27,945
Currency translation adjustment	217			—
Construction financing lease obligation	152,688			—
Gross deferred tax assets	1,377,763			1,212,170
Valuation allowance	(1,243,664		)	(1,211,561		)
Total deferred tax assets	134,099			609
Deferred tax liabilities:
Property and equipment	(134,099		)	—
Unrealized gain	—			(376		)
Contingent milestone and royalty payment obligation	—			(50,904		)
Acquired intangibles	—			(229,696		)
Net deferred tax liabilities	$	—		$	(280,367	)