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Segment Information and Concentration of Business Risk | 9 Months Ended
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Sep. 30, 2018
Segment Information and Concentration of Business Risk [Abstract] |
Segment Information and Concentration of Business Risk | 7. Segment Information and Concentration of Business Risk We have two reportable segments Ionis Core and Akcea Therapeutics. At September 30, 2018 we owned approximately 75 percent of Akcea. In October 2018, we received an additional 1.7 million shares of Akcea’s stock when TEGSEDI was approved by the FDA, increasing our ownership percentage to 76 percent. Segment income (loss) from operations includes revenue less operating expenses attributable to each segment. In our Ionis Core segment we are exploiting our antisense technology to generate a broad pipeline of first-in-class and/or best-in-class drugs for us and our partners. Our Ionis Core segment generates revenue from a multifaceted partnering strategy. Akcea is a biopharmaceutical company focused on developing and commercializing drugs to treat patients with rare and serious diseases. The following tables show our segment revenue and income (loss) from operations for the three and nine months ended September 30, 2018 and 2017 (in thousands), respectively.
Three Months Ended September 30, 2018 |  | Ionis Core |  |  | Akcea Therapeutics |  |  | Elimination of Intercompany Activity |  |  | Total |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Commercial revenue: |  |  |  |  |  |  |  |  |  |  |  |
SPINRAZA royalties |  | $ | 70,010 |  |  | $ | — |  |  | $ | — |  |  | $ | 70,010 |
Licensing and other royalty revenue |  |  | 7,946 |  |  |  | 12,000 |  |  |  | (7,200 | ) |  |  | 12,746 |
Total commercial revenue |  |  | 77,956 |  |  |  | 12,000 |  |  |  | (7,200 | ) |  |  | 82,756 |
R&D revenue under collaborative agreements |  |  | 100,105 |  |  |  | 7,241 |  |  |  | (44,707 | ) |  |  | 62,639 |
Total segment revenue |  | $ | 178,061 |  |  | $ | 19,241 |  |  | $ | (51,907 | ) |  | $ | 145,395 |
Total operating expenses |  | $ | 87,664 |  |  | $ | 84,249 |  |  | $ | (7,946 | ) |  | $ | 163,967 |
Income (loss) from operations |  | $ | 90,397 |  |  | $ | (65,008 | ) |  | $ | (43,961 | ) |  | $ | (18,572 | )
Three Months Ended September 30, 2017 (as revised) |  | Ionis Core |  |  | Akcea Therapeutics |  |  | Elimination of Intercompany Activity |  |  | Total |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Commercial revenue: |  |  |  |  |  |  |  |  |  |  |  |
SPINRAZA royalties |  | $ | 32,890 |  |  | $ | — |  |  | $ | — |  |  | $ | 32,890 |
Licensing and other royalty revenue |  |  | 1,727 |  |  |  | — |  |  |  | — |  |  |  | 1,727 |
Total commercial revenue |  |  | 34,617 |  |  |  | — |  |  |  | — |  |  |  | 34,617 |
R&D revenue under collaborative agreements |  |  | 73,791 |  |  |  | 9,906 |  |  |  | — |  |  |  | 83,697 |
Total segment revenue |  | $ | 108,408 |  |  | $ | 9,906 |  |  | $ | — |  |  | $ | 118,314 |
Total operating expenses |  | $ | 81,019 |  |  | $ | 26,013 |  |  | $ | (30 | ) |  | $ | 107,002 |
Income (loss) from operations |  | $ | 27,389 |  |  | $ | (16,107 | ) |  | $ | 30 |  |  | $ | 11,312 |
Nine Months Ended September 30, 2018 |  | Ionis Core |  |  | Akcea Therapeutics |  |  | Elimination of Intercompany Activity |  |  | Total |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Commercial revenue: |  |  |  |  |  |  |  |  |  |  |  |
SPINRAZA royalties |  | $ | 167,743 |  |  | $ | — |  |  | $ | — |  |  | $ | 167,743 |
Licensing and other royalty revenue |  |  | 9,432 |  |  |  | 12,000 |  |  |  | (7,200 | ) |  |  | 14,232 |
Total commercial revenue |  |  | 177,175 |  |  |  | 12,000 |  |  |  | (7,200 | ) |  |  | 181,975 |
R&D revenue under collaborative agreements |  |  | 232,850 |  |  |  | 42,670 |  |  |  | (49,936 | ) |  |  | 225,584 |
Total segment revenue |  | $ | 410,025 |  |  | $ | 54,670 |  |  | $ | (57,136 | ) |  | $ | 407,559 |
Total operating expenses |  | $ | 279,084 |  |  | $ | 213,428 |  |  | $ | (12,796 | ) |  | $ | 479,716 |
Income (loss) from operations |  | $ | 130,941 |  |  | $ | (158,758 | ) |  | $ | (44,340 | ) |  | $ | (72,157 | )
Nine Months Ended September 30, 2017 (as revised) |  | Ionis Core |  |  | Akcea Therapeutics |  |  | Elimination of Intercompany Activity |  |  | Total |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Commercial revenue: |  |  |  |  |  |  |  |  |  |  |  |
SPINRAZA royalties |  | $ | 60,467 |  |  | $ | — |  |  | $ | — |  |  | $ | 60,467 |
Licensing and other royalty revenue |  |  | 5,639 |  |  |  | — |  |  |  | — |  |  |  | 5,639 |
Total commercial revenue |  |  | 66,106 |  |  |  | — |  |  |  | — |  |  |  | 66,106 |
R&D revenue under collaborative agreements |  |  | 312,976 |  |  |  | 21,712 |  |  |  | (54,407 | ) |  |  | 280,281 |
Total segment revenue |  | $ | 379,082 |  |  | $ | 21,712 |  |  | $ | (54,407 | ) |  | $ | 346,387 |
Total operating expenses |  | $ | 242,753 |  |  | $ | 120,884 |  |  | $ | (54,497 | ) |  | $ | 309,140 |
Income (loss) from operations |  | $ | 136,329 |  |  | $ | (99,172 | ) |  | $ | 90 |  |  | $ | 37,247 |
The following table shows our total assets by segment at September 30, 2018 and December 31, 2017 (in thousands), respectively.
Total Assets |  | Ionis Core |  |  | Akcea Therapeutics |  |  | Elimination of Intercompany Activity |  |  | Total |
September 30, 2018 |  | $ | 2,446,425 |  |  | $ | 379,128 |  |  | $ | (577,641 | ) |  | $ | 2,247,913 |
December 31, 2017 (as revised) |  | $ | 1,342,578 |  |  | $ | 268,804 |  |  | $ | (288,608 | ) |  | $ | 1,322,774 |
We have historically funded our operations from collaborations with corporate partners and a relatively small number of partners have accounted for a significant percentage of our revenue. Revenue from significant partners, which is defined as ten percent or more of our total revenue, was as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
|  |  |  |  | (as revised) |  |  |  |  |  | (as revised)
Partner A |  | 72% |  |  | 74% |  |  | 58% |  |  | 57%
Partner B |  | 10% |  |  | 4% |  |  | 21% |  |  | 4%
Partner C |  | 5% |  |  | 8% |  |  | 10% |  |  | 6%
Partner D |  | 8% |  |  | 0% |  |  | 3% |  |  | 0%
Partner E |  | 1% |  |  | 0% |  |  | 1% |  |  | 19%
Contracts receivables from two significant partners comprised approximately 84 percent of our contracts receivables at September 30, 2018 and December 31, 2017.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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