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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) before Income Taxes Subject to Taxes | Income (loss) before income taxes subject to taxes in the following jurisdictions is as follows:
| Twelve Months Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
United States | $ | 235.3 |  |  | $ | 270.7 |  |  | $ | 119.1 |
Outside of the United States | (61.4) |  |  | (45.7) |  |  | (14.9) |
Total | $ | 173.9 |  |  | $ | 225.0 |  |  | $ | 104.2 |
Schedule of Components of Income Tax Expense (Benefit) | Significant components of the provision for income taxes are as follows:
| Twelve Months Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 5.7 |  |  | $ | — |  |  | $ | — |
State | 8.3 |  |  | 6.1 |  |  | 1.0 |
Foreign | 10.1 |  |  | 2.6 |  |  | 1.9 |
Total current income taxes | 24.1 |  |  | 8.7 |  |  | 2.9 |
Deferred: |  |  |  |  |
Federal | 5.5 |  |  | (198.8) |  |  | — |
State | (3.4) |  |  | (51.4) |  |  | — |
Foreign | (7.0) |  |  | (27.1) |  |  | 0.2 |
Total deferred income taxes | (4.9) |  |  | (277.3) |  |  | 0.2 |
Total | $ | 19.2 |  |  | $ | (268.6) |  |  | $ | 3.1 |
Schedule of Tax Credit Carryforwards | Significant loss and tax credit carryforwards and years of expiration are as follows:
| December 31, |  | Year of Expiration
(In millions) | 2021 |  | 2020 |
Net operating loss: |  |  |  |  |
Federal | $ | 38.0 |  |  | $ | 169.1 |  |  | 2027
California | 236.3 |  |  | 236.3 |  |  | 2029
Other states | 21.3 |  |  | 36.1 |  |  | 2029
UK | 102.4 |  |  | 113.2 |  |  | Indefinite
Tax credits: |  |  |  |  |
Federal |  |  |  |  |
R&D credits | 80.1 |  |  | 73.1 |  |  | 2026
Foreign tax credits | 1.5 |  |  | — |  |  | 2031
California R&D credits | $ | 81.4 |  |  | $ | 66.2 |  |  | Indefinite
Schedule of Operating Loss Carryforwards | Significant loss and tax credit carryforwards and years of expiration are as follows:
| December 31, |  | Year of Expiration
(In millions) | 2021 |  | 2020 |
Net operating loss: |  |  |  |  |
Federal | $ | 38.0 |  |  | $ | 169.1 |  |  | 2027
California | 236.3 |  |  | 236.3 |  |  | 2029
Other states | 21.3 |  |  | 36.1 |  |  | 2029
UK | 102.4 |  |  | 113.2 |  |  | Indefinite
Tax credits: |  |  |  |  |
Federal |  |  |  |  |
R&D credits | 80.1 |  |  | 73.1 |  |  | 2026
Foreign tax credits | 1.5 |  |  | — |  |  | 2031
California R&D credits | $ | 81.4 |  |  | $ | 66.2 |  |  | Indefinite
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities as of December 31, 2021 and 2020 are shown below. Significant judgment is required to evaluate the need for a valuation allowance against deferred tax assets. We review all available positive and negative evidence, including projections of pre-tax book income, earnings history, reliability of forecasting, and reversal of temporary differences. A valuation allowance is established when it is more likely than not that some or all of the deferred tax assets will not be realized. Realization of deferred tax assets is dependent upon future earnings in applicable tax jurisdictions.
| December 31,
(In millions) | 2021 |  | 2020
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 53.0 |  |  | $ | 69.2 |
Capitalized research and development expenses | 49.3 |  |  | 53.6 |
Tax credits | 105.5 |  |  | 101.1 |
Share-based compensation | 13.3 |  |  | 13.0 |
Fixed and intangible assets | 26.4 |  |  | 16.9 |
Accrued liabilities and reserves | 105.5 |  |  | 110.3 |
Collaborative agreement milestone accrual (1) | 21.9 |  |  | — |
Other | 0.5 |  |  | — |
Total gross deferred tax assets | 375.4 |  |  | 364.1 |
Less: valuation allowance | (69.9) |  |  | (55.5) |
Total net deferred tax assets | 305.5 |  |  | 308.6 |
Deferred tax liabilities: |  |  |
Fixed assets and acquired intangibles assets | (42.5) |  |  | (36.3) |
Convertible debt discount | (48.1) |  |  | (55.9) |
Total deferred tax liabilities | (90.6) |  |  | (92.2) |
Net deferred tax assets (liabilities) | $ | 214.9 |  |  | $ | 216.4 |
(1) This amount is related to the $87.1 million charge recorded in the fourth quarter of 2021 associated with our Restated Collaboration Agreement with Verily, as discussed in Note 2 to the consolidated financial statements.
Schedule of Reconciliation between Effective Tax Rate and Statutory Rate | The reconciliation between our effective tax rate on income (loss) from continuing operations and the statutory rate is as follows:
| Twelve Months Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
U.S. federal statutory tax rate | $ | 36.5 |  |  | $ | 47.3 |  |  | $ | 21.9 |
State income tax, net of federal benefit | 5.6 |  |  | 3.2 |  |  | (2.3) |
Permanent items | 26.2 |  |  | 13.1 |  |  | 1.0 |
Research and development credits | (28.9) |  |  | (24.4) |  |  | (10.8) |
Foreign tax credit | (3.7) |  |  | — |  |  | — |
Foreign rate differential | (0.1) |  |  | (0.1) |  |  | 5.6 |
Stock and officers compensation | (20.4) |  |  | (28.7) |  |  | (14.7) |
Change in statutory tax rates | (10.0) |  |  | (4.1) |  |  | — |
Other | (0.4) |  |  | 0.1 |  |  | (1.0) |
Change in valuation allowance | 14.4 |  |  | (275.0) |  |  | 3.4 |
Income taxes at effective rates | $ | 19.2 |  |  | $ | (268.6) |  |  | $ | 3.1 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits:
(In millions) |
Balance at January 1, 2019 | $ | 25.9 |
Decreases related to prior year tax positions | (0.9) |
Increases related to current year tax positions | 4.5 |
Balance at December 31, 2019 | 29.5 |
Decreases related to prior year tax positions | (0.9) |
Increases related to current year tax positions | 8.0 |
Balance at December 31, 2020 | 36.6 |
Increases related to prior year tax positions | 0.4 |
Increases related to current year tax positions | 9.8 |
Balance at December 31, 2021 | $ | 46.8 |
Schedule of Years Remaining Subject to Audit by Major Jurisdiction | The years remaining subject to audit, by major jurisdiction, are as follows:
Jurisdiction | Fiscal Year
United States (Federal and state) | 1999 - 2021
Germany | 2016 - 2021
United Kingdom | 2016 - 2021
Canada | 2017 - 2021

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