Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Benefit

The components of the income tax expense (benefit) for continuing operations are as follows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Current expense (benefit):
Federal	$	89,471	$	—	$	—
State	3,103		424		111
Foreign	(66)		(158)		261
	92,508		266		372
Deferred expense (benefit):
Federal	74,627		29,928		44,075
State	202		(185)		228
	$	167,337	$	30,009	$	44,675

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense (benefit) from continuing operations to the amount computed by applying the statutory federal income tax rate to the net income (loss) from continuing operations is summarized as follows (in thousands):

	Year Ended December 31,
	2019		2018		2017
Tax at federal statutory rate	$	167,294	$	36,400	$	20,031
State, net of federal benefit	2,466		1,635		622
Contingent liabilities	18		948		903
Share-based compensation	(819)		(8,131)		(4,019)
FDII	(402)		—		—
Research and development credits	(879)		(2,758)		(2,821)
Change in uncertain tax positions	441		858		1,308
Rate change for changes in federal or state law	(210)		178		32,429
Change in valuation allowance	(1,193)		(4,225)		(4,169)
Expired NOLs and credits	—		3,054		—
Change in derivatives	—		615		—
Other	621		1,435		391
	$	167,337	$	30,009	$	44,675

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets (liabilities) are comprised of the following:

	December 31,
	2019		2018
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	150,727	$	57,181
Research credit carryforwards	14,843		31,101
Fixed assets and intangibles	419		1,637
Accrued expenses	171		657
Deferred revenue	—		957
Other	17,960		11,430
	184,120		102,963
Valuation allowance for deferred tax assets	(141,338)		(4,476)
Net deferred tax assets	$	42,782	$	98,487
Deferred tax liabilities:
Retrophin fair value adjustment	(18)		(179)
Convertible debt	—		(2,905)
Identified intangibles	(41,664)		(44,643)
Identified indefinite lived intangibles	(1,040)		(1,759)
Investment in Viking	(2,937)		(2,480)
Deferred revenue	(3,488)		—
Other	(964)		—
Net deferred tax liabilities	$	(50,111)	$	(51,966)
Deferred income taxes, net	$	(7,329)	$	46,521

Schedule of Unrecognized Tax Benefits

A reconciliation of the amount of unrecognized tax benefits at December 31, 2019, 2018 and 2017 is as follows (in thousands):

	December 31,
	2019		2018		2017
Balance at beginning of year	$	30,289	$	29,363	$	38,770
Additions based on tax positions related to the current year	543		1,247		1067
Additions for tax positions of prior years	(54)		336		109
Reductions for tax positions of prior years	(2,042)		(657)		(10,583)
Balance at end of year	$	28,736	$	30,289	$	29,363