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Income taxes (Tables)
12 Months Ended
Dec. 31, 2015
Provision for Income Taxes

The provision for income taxes consists of the following (in thousands):

 

     Year Ended December 31,  
     2015     2014     2013  

Current

      

U.S. federal

   $      $      $   

U.S. state

                     

Non-U.S.

                     
  

 

 

   

 

 

   

 

 

 

Total current

                     
  

 

 

   

 

 

   

 

 

 

Deferred

      

U.S. federal

     109,512        57,873        59,379   

U.S. state

     (29,394     7,631        7,470   

Non-U.S.

                     

Valuation Allowance

     (80,118     (65,504     (66,849
  

 

 

   

 

 

   

 

 

 

Total deferred

                     
  

 

 

   

 

 

   

 

 

 

Total

   $      $      $   
  

 

 

   

 

 

   

 

 

 

 

Components of Net Deferred Tax Asset

Components of the net deferred tax asset as of December 31, 2015 and 2014 are approximately as follows (in thousands):

 

     December 31,  
     2015     2014  

Deferred tax assets:

  

Net operating loss carryforwards

   $ 721,588      $ 699,997   

Research and development credits

     73,646        73,227   

Capitalized research

     5,872        28,516   

Payments from collaboration

     52,484        19,217   

Milestone Rights

     3,242        5,321   

Accrued expenses

     251        768   

Loss on purchase commitment

     24,084          

Non-qualified stock option expense

     16,941        43,691   

Capitalized patent costs

     8,574        8,624   

Other

     7,186        131   

Depreciation

     48,755        3,010   
  

 

 

   

 

 

 

Total net deferred tax assets

     962,623        882,502   

Valuation allowance

     (962,623     (882,502
  

 

 

   

 

 

 

Net deferred tax assets

   $      $   
  

 

 

   

 

 

 

 

Effective Income Tax Rate

The Company’s effective income tax rate differs from the statutory federal income tax rate as follows for the years ended December 31, 2015, 2014 and 2013:

 

     December 31,  
     2015     2014     2013  

Federal tax benefit rate

     35.0     35.0     35.0

State tax benefit, net of federal benefit

                     

Permanent items

            0.9          

Intercompany transfer of intellectual property

     (1.0     (4.1     (4.3

Valuation allowance

     (34     (31.8     (30.7
  

 

 

   

 

 

   

 

 

 

Effective income tax rate

     0.0     0.0     0.0