XML 37 R22.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Taxes |
Income Taxes | Note 13. Income Taxes We are subject to U.S. federal, state and foreign corporate 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, | ​
​ |  | 2020 |  | 2019 |  | 2018 |
U.S. | ​ | $ | (16,609) | ​ | $ | 712,486 | ​ | $ | 478,050 | ​
Non-U.S. | ​ |  | (215,609) | ​ |  | (225,695) | ​ |  | (362,703) | ​
Income (loss) before provision for income taxes | ​ | $ | (232,218) | ​ | $ | 486,791 | ​ | $ | 115,347 | ​
​ Our provision for income taxes consists of the following (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, | ​
​ |  | 2020 |  | 2019 |  | 2018 | ​
Current: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | 43,595 | ​ | $ | 23,526 | ​ | $ | — | ​
State | ​ | ​ | 18,881 | ​ | ​ | 11,553 | ​ | ​ | 5,010 | ​
Foreign | ​ |  | 1,353 | ​ |  | 5,183 | ​ |  | 1,303 | ​
​ | ​ | ​ | 63,829 | ​ | ​ | 40,262 | ​ | ​ | 6,313 | ​
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
State | ​ | ​ | — | ​ | ​ | (205) | ​ | ​ | 111 | ​
Foreign | ​ | ​ | (350) | ​ | ​ | (172) | ​ | ​ | (570) | ​
​ | ​ | ​ | (350) | ​ | ​ | (377) | ​ | ​ | (459) | ​
Total provision for income taxes | ​ | $ | 63,479 | ​ | $ | 39,885 | ​ | $ | 5,854 | ​
​ 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, | ​
​ |  | 2020 |  | 2019 |  | 2018 |
Provision (benefit) at U.S. federal statutory rate | ​ | $ | (48,766) | ​ | $ | 102,226 | ​ | $ | 24,223 | ​
Unbenefited future tax deductions and tax credits | ​ |  | 105,923 | ​ |  | (73,666) | ​ |  | (51,861) | ​
Excess tax benefits related to share-based compensation | ​ |  | (9,750) | ​ |  | (13,418) | ​ |  | (8,233) | ​
Foreign tax rate differential | ​ | ​ | 30,412 | ​ | ​ | 25,419 | ​ | ​ | 37,061 | ​
Non-deductible officer compensation | ​ | ​ | 7,418 | ​ | ​ | 5,213 | ​ | ​ | 4,114 | ​
Foreign-derived intangible income | ​ | ​ | (22,830) | ​ | ​ | (9,153) | ​ | ​ | — | ​
Other | ​ |  | 1,072 | ​ |  | 3,264 | ​ |  | 550 | ​
Provision for income taxes | ​ | $ | 63,479 | ​ | $ | 39,885 | ​ | $ | 5,854 | ​
​ The foreign tax rate differential in the table above reflects the impact of operations in jurisdictions with tax rates that differ from the U.S. federal statutory rate. Significant components of our deferred tax assets and liabilities are as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, | ​
​ |  | 2020 |  | 2019 |
Deferred tax assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net operating loss carry forwards | ​ | $ | 128,088 | ​ | $ | 102,001 | ​
Federal and state research credits | ​ |  | 305,099 | ​ |  | 400,550 | ​
Capitalized research and development | ​ |  | 43,806 | ​ |  | 46,188 | ​
Deferred revenue and accruals | ​ |  | 27,467 | ​ |  | 13,609 | ​
Non-cash compensation | ​ | ​ | 75,867 | ​ | ​ | 67,345 | ​
Acquisition-related contingent consideration | ​ |  | 32,658 | ​ |  | 31,956 | ​
Intangibles, net | ​ | ​ | 289,848 | ​ | ​ | 92,806 | ​
Long term investments | ​ | ​ | 25,968 | ​ | ​ | 14,899 | ​
Other | ​ |  | 26,303 | ​ |  | 21,885 | ​
Total gross deferred tax assets | ​ |  | 955,104 | ​ |  | 791,239 | ​
Less valuation allowance for deferred tax assets | ​ |  | (930,209) | ​ |  | (770,497) | ​
Net deferred tax assets | ​ | $ | 24,895 | ​ | $ | 20,742 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred tax liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Property and equipment | ​ | $ | (22,841) | ​ | $ | (19,095) | ​
Total gross deferred tax liabilities | ​ |  | (22,841) | ​ |  | (19,095) | ​
Net deferred tax assets | ​ | $ | 2,054 | ​ | $ | 1,647 | ​
​ The net deferred tax asset balance is reported in other assets, net on the consolidated balance sheets as of December 31, 2020 and 2019. As of December 31, 2020, 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 | ​ | $ | 361,890 | ​ | 2021 through 2039; indefinite | ​
Foreign | ​ | ​ | 1,250,048 | ​ | 2021 through 2027 | ​
Research and development credit carryforwards | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | ​ | 150,598 | ​ | 2036 through 2040 | ​
State | ​ | ​ | 23,986 | ​ | 2021 through 2039; indefinite | ​
Orphan drug tax credit carryforwards | ​ | ​ | 162,653 | ​ | 2035 through 2040 | ​
​ The valuation allowance for deferred tax assets increased by approximately $159.7 million during the year ended December 31, 2020, decreased by approximately $66.5 million during the year ended December 31, 2019 and increased by approximately $2.2 million during the year ended December 31, 2018. The net valuation allowance increase during 2020 was primarily due to the generation of future deductible temporary differences and foreign NOLs offset by a net utilization of research and development (“R&D”) and orphan drug credits in the U.S. Valuation allowances require an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction-by-jurisdiction basis. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based upon our analysis of our historical operating results, as well as projections of our future taxable income (losses) during the periods in which the temporary differences will be recoverable, management believes the uncertainty regarding the realization of our U.S. and Swiss net deferred tax assets requires a full valuation allowance against such net assets as of December 31, 2020. When performing our assessment on projections of future taxable income (losses), we consider factors such as the likelihood of regulatory approval and commercial success of products currently under development, among other factors. The financial statement recognition of the benefit for a tax position is dependent upon the benefit being more likely than not to be sustainable upon audit by the applicable taxing authority. If this threshold is met, the tax benefit is then measured and recognized at the largest amount that is greater than 50% likely of being realized upon ultimate settlement. If such unrecognized tax benefits were realized and not subject to valuation allowances, we would recognize a tax benefit of $31.6 million. The following table summarizes the gross amounts of unrecognized tax benefits (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, | ​
​ | ​ | 2020 |  | 2019 | ​
Balance at beginning of year | ​ | $ | 24,251 | ​ | $ | 22,395 | ​
Additions related to prior periods tax positions | ​ | ​ | 3,953 | ​ |  | 726 | ​
Reductions related to prior periods tax positions | ​ | ​ | (216) | ​ | ​ | (82) | ​
Additions related to current period tax positions | ​ | ​ | 4,119 | ​ |  | 1,835 | ​
Settlements | ​ | ​ | (201) | ​ | ​ | — | ​
Reductions due to lapse of applicable statute of limitations | ​ | ​ | (397) | ​ | ​ | (557) | ​
Currency translation adjustment | ​ | ​ | 88 | ​ | ​ | (66) | ​
Balance at end of year | ​ | $ | 31,597 | ​ | $ | 24,251 | ​
​ Our policy is to recognize interest and penalties related to uncertain tax positions, if any, as a component of income tax expense. During the year ended December 31, 2020, we recorded a negligible reduction to interest and penalties as a component of income tax expense. During the years ending December 31, 2019 and 2018, we recorded interest and penalties as a component of income tax expense of $0.2 million and $0.1 million, respectively. We do not anticipate any significant changes to our unrecognized tax benefits during the next twelve months. The Company files U.S. federal, state and local income tax returns and income tax returns in various foreign jurisdictions, with statutes of limitation generally ranging from three to five years during which such tax returns may be audited by the relevant tax authorities. Those statutes could be extended due to NOL or tax credit carryforwards generated during these periods that are subsequently utilized in open tax periods. In general, tax authorities have the ability to adjust the NOL carryforward or tax credits for three years after utilization of that year’s tax attribute carryforward.

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 The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration