XML 35 R40.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Income (loss) from operations before income taxes

The provision for income taxes is based on income (loss) before provision for income taxes as follows (in thousands):

​

​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,								​
​		2019			2018			2017
U.S.	​	$	712,486	​	$	478,050	​	$	36,493	​
Non-U.S.	​		(225,695)	​		(362,703)	​		(348,783)	​
Income (loss) before provision for income taxes	​	$	486,791	​	$	115,347	​	$	(312,290)	​

Schedule of provision for income taxes

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

​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,								​
​		2019			2018			2017		​
Current:	​	​	​	​	​	​	​	​	​	​
Federal	​	$	23,526	​	$	—	​	$	—	​
State	​	​	11,553	​	​	5,010	​	​	486	​
Foreign	​		5,183	​		1,303	​		1,171	​
​	​	​	40,262	​	​	6,313	​	​	1,657	​
Deferred:	​	​	​	​	​	​	​	​	​	​
State	​	​	(205)	​	​	111	​	​	(805)	​
Foreign	​	​	(172)	​	​	(570)	​	​	—	​
​	​	​	(377)	​	​	(459)	​	​	(805)	​
Total provision for income taxes	​	$	39,885	​	$	5,854	​	$	852	​

Schedule of reconciliation of income taxes at the U.S. federal statutory rate to the provision for income taxes

A reconciliation of income taxes at the U.S. federal statutory rate to the provision for income taxes is as follows (in thousands):

​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,								​
​		2019			2018			2017
Provision (benefit) at U.S. federal statutory rate1	​	$	102,226	​	$	24,223	​	$	(109,302)	​
Unbenefited net operating losses and tax credits	​		(82,819)	​		(51,861)	​		(99,254)	​
Excess tax benefits related to share-based compensation	​		(13,418)	​		(8,233)	​		(81,021)	​
Deferred tax impact of Tax Cuts and Jobs Act of 2017	​	​	—	​	​	—	​	​	196,751	​
Foreign tax rate differential	​	​	25,419	​	​	37,061	​	​	86,777	​
Non-deductible officer compensation	​	​	5,213	​	​	4,114	​	​	6,351	​
Other	​		3,264	​		550	​		550	​
Provision for income taxes	​	$	39,885	​	$	5,854	​	$	852	​

^1. Statutory U.S. federal income tax rate of 21% in 2019, 21% in 2018 and 35% in 2017.

Schedule of significant components of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities are as follows (in thousands):

​	​	​	​	​	​	​	​
​	​	December 31,					​
​		2019			2018
Deferred tax assets:	​	​	​	​	​	​	​
Net operating loss carry forwards	​	$	102,001	​	$	148,142	​
Federal and state research credits	​		400,550	​		402,798	​
Capitalized research and development	​		46,188	​		53,871	​
Deferred revenue and accruals	​		13,609	​		9,443	​
Non-cash compensation	​	​	67,345	​	​	58,194	​
Acquisition-related contingent consideration	​		31,956	​		43,676	​
Intangibles, net	​	​	92,806	​	​	93,730	​
Long term investments	​	​	14,899	​	​	23,621	​
Other	​		21,885	​		22,211	​
Total gross deferred tax assets	​		791,239	​		855,686	​
Less valuation allowance for deferred tax assets	​		(770,497)	​		(836,992)	​
Net deferred tax assets	​	$	20,742	​	$	18,694	​
​	​	​	​	​	​	​	​
Deferred tax liabilities:	​	​	​	​	​	​	​
Property and equipment	​	$	(19,095)	​	$	(17,424)	​
Total gross deferred tax liabilities	​		(19,095)	​		(17,424)	​
Net deferred tax assets	​	$	1,647	​	$	1,270	​

Schedule of operating loss and tax credit carryforwards

As of December 31, 2019, the Company has net operating loss (“NOL”) carryforwards, research and development credit carryforwards and orphan drug tax credit carryforwards as follows (in thousands):

​	​	​	​	​	​	​
​	​	Amount		​	Expiring if not utilized	​
Net operating loss carryforwards	​	​	​	​	​	​
State	​	$	279,544	​	2020 through 2037; indefinite	​
Foreign	​	​	939,949	​	2020 through 2026	​
Research and development credit carryforwards	​	​	​	​	​	​
Federal	​	​	187,821	​	2031 through 2039	​
State	​	​	28,664	​	2021 through 2039; indefinite	​
Orphan drug tax credit carryforwards	​	​	212,410	​	2031 through 2039	​

Unrecognized tax benefits

The following table summarizes the gross amounts of unrecognized tax benefits (in thousands):

​

​	​	​	​	​	​	​	​
​	​	Year Ended December 31,					​
​	​	2019			2018		​
Balance at beginning of year	​	$	22,395	​	$	18,022	​
Additions related to prior periods tax positions	​	​	726	​		2,098	​
Reductions related to prior periods tax positions	​	​	(82)	​	​	—	​
Additions related to current period tax positions	​	​	1,835	​		2,466	​
Reductions due to lapse of applicable statute of limitations	​	​	(557)	​	​	(130)	​
Currency translation adjustment	​	​	(66)	​	​	(61)	​
Balance at end of year	​	$	24,251	​	$	22,395	​

X

- Definition

Tabular disclosure of pertinent information, such as operating loss carryforwards and tax credit carryforward

+ References

No definition available.

+ Details

Name:	incy_ScheduleOfOperatingLossAndCarryforwardsAndTaxCreditCarryforwardsTextBlock
Namespace Prefix:	incy_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h)(1)(i))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 55
-Paragraph 217
-URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration