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Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Cash flows from operating activities:      
Net income (loss) $ (687,550) $ (51,135) $ 41,179
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Depreciation and amortization expense 48,365 38,191 35,041
Stock-based compensation expense 127,303 114,285 118,226
Other non-cash based compensation expense 5,860 10,261 8,525
Intangible asset impairment charges 663,500 0 105,800
Secured notes (due 2012) discount amortization expense 0 0 18,409
Change in fair value of free-standing derivatives related to the sale of milestone payments 0 0 16,801
Deferred income taxes (285,053) 36,660 (7,501)
Non-cash Expense 7,594 0 0
Deconsolidation of variable interest entity (Alios) 55,110 0 0
Write-downs of inventories to net realizable value 10,358 133,189 0
Excess tax benefit from share-based payment arrangements 1,252 (1,971) (900)
Other non-cash items, net 6,742 178 319
Changes in operating assets and liabilities, excluding the effects of the acquisition and deconsolidation of a variable interest entity (Alios):      
Accounts receivable, net 53,363 39,912 (170,606)
Inventories 7,142 (29,925) (111,388)
Prepaid expenses and other current assets (12,061) (23,619) 10,358
Accounts payable (49,234) 14,892 37,468
Accrued expenses and other liabilities 43,725 29,232 116,822
Accrued restructuring expense 5,025 (2,985) (3,282)
Deferred revenues (53,011) (39,324) (71,536)
Net cash provided by (used in) operating activities (51,570) 267,841 143,735
Cash flows from investing activities:      
Purchases of marketable securities (2,412,418) (1,705,829) (721,545)
Sales and maturities of marketable securities 2,348,295 1,367,927 1,016,040
Payment for acquisition of variable interest entity (Alios) 0 0 (60,000)
Expenditures for property and equipment (51,393) (71,140) (34,595)
Decrease in restricted cash and cash equivalents 31,804 2,156 0
Decrease (increase) in restricted cash and cash equivalents (Alios) 27,884 (18,105) 12,695
Decrease (increase) in other assets 1,698 (826) (183)
Net cash provided by (used in) investing activities (54,130) (425,817) 212,412
Cash flows from financing activities:      
Excess tax benefit from share-based payment arrangements (1,252) 1,971 900
Issuances of common stock under benefit plans 265,878 191,721 124,862
Payments to redeem secured notes (158) 0 (155,000)
Settlement of milestone derivatives 0 0 (95,000)
Payments on capital lease obligations (16,057) (2,615) 0
Payments on construction financing lease obligation (67,527) (18,873) 0
Net cash provided by (used in) financing activities 180,884 172,204 (124,238)
Effect of changes in exchange rates on cash 4,708 (141) 214
Net increase in cash and cash equivalents 79,892 14,087 232,123
Cash and cash equivalents—beginning of period 489,407 [1] 475,320 243,197
Cash and cash equivalents—end of period 569,299 [1] 489,407 [1] 475,320
Supplemental disclosure of cash flow information:      
Cash paid for interest 11,015 13,400 13,512
Cash paid for income taxes 2,840 9,318 0
Conversion of convertible senior subordinated notes (due 2015) for common stock 399,842 0 0
Capitalization of construction in-process related to construction financing lease obligation 215,013 235,594 54,655
Assets acquired under capital lease obligations 50,972 30,101 0
Unamortized deferred debt issuance costs exchanged $ 4,230 $ 0 $ 0
[1] Amounts as of December 31, 2012 include the assets and liabilities of Vertex’s variable interest entity (“VIE”), Alios BioPharma, Inc. (“Alios”). The Company deconsolidated Alios as of December 31, 2013. Vertex’s interests and obligations with respect to the VIE’s assets and liabilities are limited to those accorded to Vertex in its agreement with Alios. See Note B, "Collaborative Arrangements," to these consolidated financial statements for amounts.