Basis of Presentation and Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Schedule of cash and cash equivalents

The cash, cash equivalents and restricted cash at the beginning and ending of each period presented in the Company’s condensed consolidated statements of cash flows for the three months ended March 31, 2018 and 2017 consisted of the following balances from the Company’s condensed consolidated balance sheets:

	Three Months Ended March 31, 2018				Three Months Ended March 31, 2017
	Beginning of period		End of period		Beginning of period		End of period
	(in thousands)
Cash and cash equivalents	$	1,665,412	$	1,995,893	$	1,183,945	$	1,003,679
Restricted cash and cash equivalents (VIE)	1,489		9,573		47,762		44,564
Prepaid expenses and other current assets	625		262		—		—
Cash, cash equivalents and restricted cash per statement of cash flows	$	1,667,526	$	2,005,728	$	1,231,707	$	1,048,243

Schedule of new accounting pronouncements and changes in accounting principles

The cumulative effect of applying ASC 606 to the Company’s contracts with customers that were not completed as of January 1, 2018 was as follows:

	Balance as of						Balance as of
	December 31, 2017			Adjustments			January 1, 2018
Assets	(in thousands)
Accounts receivable, net	$	281,343		$	29,881		$	311,224
Inventories	111,830			(90		)	111,740
Prepaid expenses and other current assets	165,635			(17,166		)	148,469
Total assets	$	3,546,014		$	12,625		$	3,558,639
Liabilities and Shareholders’ Equity
Accrued expenses	$	443,961		$	8,586		$	452,547
Early access sales accrual	232,401			(7,273		)	225,128
Other liabilities, current portion	34,373			2,083			36,456
Accumulated other comprehensive loss	(11,572		)	949			(10,623		)
Accumulated deficit	(5,119,723		)	8,280			(5,111,443		)
Total liabilities and shareholders’ equity	$	3,546,014		$	12,625		$	3,558,639

The impact of adoption on the Company’s condensed consolidated balance sheet as of March 31, 2018 was as follows:

	As of March 31, 2018
	As Reported under ASC 606			Balances without Adoption of ASC 606			Effect of Change Higher/(Lower)
Assets	(in thousands)
Accounts receivable, net	$	327,294		$	294,142		$	33,152
Inventories	117,346			117,414			(68		)
Prepaid expenses and other current assets	109,886			128,818			(18,932		)
Total assets	$	3,952,974		$	3,938,822		$	14,152
Liabilities and Shareholders’ Equity
Accrued expenses	411,231			408,014			3,217
Early access sales accrual	268,446			278,957			(10,511		)
Other liabilities, current portion	56,654			48,026			8,628
Accumulated other comprehensive loss	(39,743		)	(41,148		)	1,405
Accumulated deficit	(4,876,111		)	(4,887,524		)	11,413
Total liabilities and shareholders’ equity	$	3,952,974		$	3,938,822		$	14,152

The impact of adoption on the Company’s condensed consolidated statement of operations for the three months ended March 31, 2018 was as follows:

	Three Months Ended March 31, 2018
	As Reported under ASC 606		Balances without Adoption of ASC 606		Effect of Change Higher/(Lower)
	(in thousands)
Product revenues, net	$	637,729	$	633,064	$	4,665
Cost of sales	71,613		70,081		1,532
Income from operations	128,901		125,768		3,133
Net income attributable to Vertex	$	210,263	$	207,130	$	3,133
Amounts per share attributable to Vertex common shareholders:
Net income:
Basic	$	0.83	$	0.82	$	0.01
Diluted	$	0.81	$	0.80	$	0.01