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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Reconciliation of Total Amounts of Unrecognized Tax Benefits

The following is a reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018:

In thousands	2020			2019		2018
Beginning uncertain tax benefits	$	26,743		$	6,815	$	1,734
Prior year—increases		2,428			295		296
Prior year—decreases		(5,391	)		—		(762	)
Current year—increases		254			19,633		5,547
Ending uncertain tax benefits	$	24,034		$	26,743	$	6,815

Jurisdictions the Company Remains Subject to Tax Examinations

The Company files income tax returns in the United States, Ireland and United Kingdom, or UK. The Company remains subject to tax examinations in the following jurisdictions as of December 31, 2020:

Jurisdiction			Tax Years
United States—Federal			2017-2020
United States—State			2012-2020
Ireland			2016-2020
United Kingdom			2019-2020

Components of Loss from Operations Before Taxes

The components of loss from operations before taxes were as follows for the years ended December 31, 2020, 2019 and 2018:

In thousands	2020			2019			2018
United States	$	14,915		$	10,269		$	(13,583	)
Ireland and United Kingdom		(32,170	)		(32,750	)		(102,766	)
	$	(17,255	)	$	(22,481	)	$	(116,349	)

Benefit from Income Taxes

The provision for income taxes shown in the accompanying consolidated statements of operations consists of the following for fiscal 2020, 2019 and 2018:

In thousands	2020			2019			2018
Current:
United States—Federal	$	45		$	—		$	4
United States—State		700			164			92
Total current	$	745		$	164		$	96
Deferred:
United States—Federal		1,972			1,777			(1,968	)
United States—State		1,956			(914	)		(1,325	)
Ireland and United Kingdom		(26,793	)		1,278			(5,435	)
Change in valuation allowance		22,865			(2,141	)		8,728
Total deferred	$	—		$	—		$	—
Provision for income taxes	$	745		$	164		$	96

Difference between Benefit from Income Taxes and Amount Computed by Applying Statutory Income Tax Rate to Income Before Taxes

The provision for income taxes differs from the amount computed by applying the statutory income tax rate to income before taxes due to the following for fiscal 2020, 2019 and 2018:

In thousands	2020			2019			2018
Benefits from taxes at statutory rate	$	(4,314	)	$	(5,620	)	$	(29,087	)
Rate differential		128			3,009			9,796
Change in valuation reserves		22,865			(2,141	)		8,728
Derivative liabilities		—			—			337
Nondeductible employee compensation		6,122			5,472			3,058
Stock option/RSU windfall		(3,262	)		(14,342	)		(7,684	)
ISO Disqualifying Disposition Windfall		(253	)		(2,849	)		—
Research and development credits		(6,225	)		(1,607	)		(1,438	)
Tax return to provision adjustments		(138	)		(3,222	)		6,736
Net Operating Loss Carryback		(2,465	)		—			—
Cumulative translation adjustment		(10,852	)		2,025			5,711
Permanent and other		(4,283	)		(443	)		(404	)
Non-deductible interest expense		—			—			267
Tax reserves		3,422			18,799			4,956
Corscianto Liquidation		—			1,727			—
Long-term debt from royalty-bearing instrument		—			(644	)		(880	)
Provision for income taxes	$	745		$	164		$	96

Income Tax Effect of Each Type of Temporary Difference Comprising Net Deferred Tax Asset

The income tax effect of each type of temporary difference comprising the net deferred tax asset as of December 31, 2020 and 2019 is as follows:

In thousands	December 31, 2020			December 31, 2019
Deferred tax assets:
Net operating losses	$	125,859		$	118,220
Stock-based compensation		7,565			7,111
Tax credits		14,690			9,149
Lease Liability		2,219			2,715
Other reserves and accrued liabilities		14,702			5,580
Gross deferred tax assets		165,035			142,775
Less: valuation allowance		(160,841	)		(137,976	)
Total deferred tax assets		4,194			4,799
Deferred tax liabilities:
Depreciation and amortization		(2,399	)		(2,544	)
Lease Asset		(1,784	)		(2,242	)
Other liabilities		(11	)		(13	)
Total deferred tax liabilities		(4,194	)		(4,799	)
Net deferred tax assets	$	—		$	—

Valuation Allowance

The following table reflects the activity in the valuation allowance for the years ended December 31, 2020 and 2019:

In thousands	2020		2019
Beginning valuation allowance	$	137,976	$	140,117
Increase (decrease) as reflected in income tax expense		12,453		(114	)
Cumulative translation adjustment		10,412		(2,027	)
Ending valuation allowance	$	160,841	$	137,976