Quarterly Financial Data (unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

The following tables set forth the Company’s quarterly financial data for the two years ended December 31, 2020:


	Three Months Ended
	March 31, 2020		June 30, 2020		September 30, 2020		December 31, 2020
	(in thousands, except per share amounts)
Revenues:
Product revenues, net	$	1,515,107	$	1,524,485	$	1,536,271	$	1,626,920
Collaborative and royalty revenues	—		—		2,000		900
Total revenues	1,515,107		1,524,485		1,538,271		1,627,820
Costs and expenses:
Cost of sales	162,497		184,520		186,182		203,101
Research and development expenses (1)	448,528		420,928		493,497		466,584
Sales, general and administrative expenses	182,258		191,804		184,551		211,843
Change in fair value of contingent consideration	1,600		9,200		1,800		500
Total costs and expenses	794,883		806,452		866,030		882,028
Income from operations	720,224		718,033		672,241		745,792
Interest income	12,576		4,243		3,100		2,320
Interest expense	(14,136)		(13,871)		(13,856)		(16,288)
Other (expense) income, net (2)	(61,130)		116,365		84,386		156,799
Income before provision for income taxes	657,534		824,770		745,871		888,623
Provision for (benefit from) income taxes (3)	54,781		(12,500)		78,437		284,433
Net income attributable to Vertex	$	602,753	$	837,270	$	667,434	$	604,190

Amounts per share attributable to Vertex common shareholders:
Net income:
Basic	$	2.32	$	3.22	$	2.56	$	2.32
Diluted	$	2.29	$	3.18	$	2.53	$	2.30
Shares used in per share calculations:
Basic	259,815		259,637		260,392		260,038
Diluted	263,515		263,403		264,079		263,106


	Three Months Ended
	March 31, 2019		June 30, 2019		September 30, 2019		December 31, 2019
	(in thousands, except per share amounts)
Revenues:
Product revenues, net (4)	$	857,253	$	940,380	$	949,828	$	1,413,265
Collaborative and royalty revenues	1,182		913		—		—
Total revenues	858,435		941,293		949,828		1,413,265
Costs and expenses:
Cost of sales	95,092		135,740		131,914		185,012
Research and development expenses (1)	339,490		379,091		555,948		480,011
Sales, general and administrative expenses	147,045		156,502		159,674		195,277
Change in fair value of contingent consideration	—		—		2,959		1,500
Total costs and expenses	581,627		671,333		850,495		861,800
Income from operations	276,808		269,960		99,333		551,465
Interest income	15,615		18,076		17,628		12,359
Interest expense	(14,868)		(14,837)		(14,548)		(14,249)
Other income (expense), net (2)	42,610		53,939		(31,747)		127,375
Income before provision for income taxes	320,165		327,138		70,666		676,950
Provision for income taxes	51,534		59,711		13,148		93,716
Net income attributable to Vertex	$	268,631	$	267,427	$	57,518	$	583,234

Amounts per share attributable to Vertex common shareholders:
Net income:
Basic	$	1.05	$	1.04	$	0.22	$	2.26
Diluted	$	1.03	$	1.03	$	0.22	$	2.23
Shares used in per share calculations:
Basic	255,695		256,154		256,946		258,003
Diluted	260,175		259,822		260,473		262,108

1.The Company incurred research and development expenses of $75.0 million related to its 2020 Moderna Agreement in the third quarter of 2020 and $175.0 million related to its CRISPR DMD/DM1 Agreement in the third quarter of 2019. See Note B, “Collaborative Arrangements.”

2.In 2020 and 2019, “Other income (expense), net” was primarily related to changes in the fair value of the Company’s investments in corporate equity securities, and from sales of certain corporate equity securities. See Note E, “Marketable Securities and Equity Investments.”

3.In the second quarter of 2020, the Company completed an intra-entity transfer of intellectual property rights to the U.K., resulting in a deferred tax benefit of $209.0 million. See Note O, “Income Taxes.”

4.In the fourth quarter of 2019, the Company updated its transaction price and recognized net product revenues of $155.8 million related to prior period ORKAMBI sales upon reaching a reimbursement agreement with the French government for ORKAMBI, including ORKAMBI distributed through early access programs. See Note A, “Nature of Business and Accounting Policies.”