XML 61 R25.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Taxes [Abstract] |
Income (Loss) Before Income Taxes | Income (loss) before income taxes is comprised of (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
United States |  | $ | (258,493 | ) |  | $ | (29,966 | ) |  | $ | (137,222 | )
Foreign |  |  | 508 |  |  |  | 818 |  |  |  | 2,670 |
Income (loss) before income taxes |  | $ | (257,985 | ) |  | $ | (29,148 | ) |  | $ | (134,552 | )
Income Tax Expense (Benefit) | Our income tax expense (benefit) was as follows (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 10,522 |  |  | $ | (200 | ) |  | $ | (837 | )
State |  |  | 1,129 |  |  |  | (690 | ) |  |  | 3,782 |
Foreign |  |  | 86 |  |  |  | 339 |  |  |  | 518 |
Total current income tax expense (benefit) |  |  | 11,737 |  |  |  | (551 | ) |  |  | 3,463 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | — |  |  |  | — |  |  |  | 341,728 |
State |  |  | — |  |  |  | — |  |  |  | — |
Total deferred income tax benefit |  |  | — |  |  |  | — |  |  |  | 341,728 |
Total income tax expense (benefit) |  | $ | 11,737 |  |  | $ | (551 | ) |  | $ | 345,191 |
Reconciliation of Statutory to Effective Tax Rate | Our expense (benefit) for income taxes differs from the amount computed by applying the U.S. federal statutory rate to income (loss) before taxes. The sources and tax effects of the differences are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Pre-tax income (loss) |  | $ | (257,985 | ) |  |  |  |  | $ | (29,148 | ) |  |  |  |  | $ | (134,552 | ) |  |  |
Statutory rate |  |  | (54,177 | ) |  |  | 21.0 | % |  |  | (6,121 | ) |  |  | 21.0 | % |  |  | (28,256 | ) |  |  | 21.0 | %
State income tax net of federal benefit |  |  | (13,622 | ) |  |  | 5.3 | % |  |  | 4,278 |  |  |  | (14.7 | )% |  |  | (37,705 | ) |  |  | 28.0 | %
Foreign |  |  | (49 | ) |  |  | 0.0 | % |  |  | 143 |  |  |  | (0.5 | )% |  |  | 49 |  |  |  | 0.0 | %
Net change in valuation allowance |  |  | 104,951 |  |  |  | (40.7 | )% |  |  | 2,885 |  |  |  | (9.9 | )% |  |  | 460,898 |  |  |  | (342.5 | )%
Loss on debt transactions |  |  | — |  |  |  | — |  |  |  | 262 |  |  |  | (0.9 | )% |  |  | — |  |  |  | — |
Tax credits |  |  | (39,729 | ) |  |  | 15.4 | % |  |  | (23,198 | ) |  |  | 79.6 | % |  |  | (18,774 | ) |  |  | 14.0 | %
Deferred tax true-up |  |  | (20 | ) |  |  | 0.0 | % |  |  | (24 | ) |  |  | 0.1 | % |  |  | (206 | ) |  |  | 0.2 | %
Tax rate change |  |  | (3,091 | ) |  |  | 1.2 | % |  |  | 12,838 |  |  |  | (44.0 | )% |  |  | (32,951 | ) |  |  | 24.5 | %
Non-deductible compensation |  |  | 3,023 |  |  |  | (1.2 | )% |  |  | 5,085 |  |  |  | (17.4 | )% |  |  | 7,931 |  |  |  | (5.9 | )%
Other non-deductible items |  |  | 57 |  |  |  | 0.0 | % |  |  | 84 |  |  |  | (0.3 | )% |  |  | 193 |  |  |  | (0.1 | )%
Stock-based compensation |  |  | 14,030 |  |  |  | (5.4 | )% |  |  | 4,720 |  |  |  | (16.2 | )% |  |  | 17,435 |  |  |  | (13.0 | )%
Impacts from Akcea Merger |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (22,032 | ) |  |  | 16.4 | %
Other |  |  | 364 |  |  |  | (0.1 | )% |  |  | (1,503 | ) |  |  | 5.1 | % |  |  | (1,391 | ) |  |  | 0.9 | %
Effective rate |  | $ | 11,737 |  |  |  | (4.5 | )% |  | $ | (551 | ) |  |  | 1.9 | % |  | $ | 345,191 |  |  |  | (256.5 | )%
Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities as of December 31, 2022 and 2021 are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |
Deferred Tax Assets: |  |  |  |  |  |
Net operating loss carryovers |  | $ | 87,802 |  |  | $ | 85,600 |
Tax credits |  |  | 277,436 |  |  |  | 269,538 |
Deferred revenue |  |  | 85,700 |  |  |  | 104,330 |
Stock-based compensation |  |  | 86,983 |  |  |  | 86,611 |
Intangible and capital assets |  |  | 104,649 |  |  |  | 92,542 |
Convertible debt |  |  | 34,384 |  |  |  | 45,681 |
Interest expense limitation |  |  | — |  |  |  | 6,996 |
Capitalized research and development expenses |  |  | 119,635 |  |  |  | — |
Long-term lease liabilities |  |  | 45,612 |  |  |  | 5,119 |
Other |  |  | 15,813 |  |  |  | 9,929 |
Total deferred tax assets |  | $ | 858,014 |  |  | $ | 706,346 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Fixed assets |  |  | (4,475 | ) |  |  | (3,303 | )
Right-of-use assets |  |  | (44,504 | ) |  |  | (4,159 | )
Other |  |  | (313 | ) |  |  | (1,111 | )
Net deferred tax asset |  | $ | 808,722 |  |  | $ | 697,773 |
Valuation allowance |  |  | (808,722 | ) |  |  | (697,773 | )
Total net deferred tax assets and liabilities |  | $ | — |  |  | $ | — |
Gross Unrecognized Tax Benefits | The following table summarizes our gross unrecognized tax benefits (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Beginning balance of unrecognized tax benefits |  | $ | 55,085 |  |  | $ | 54,163 |  |  | $ | 69,784 |
Decrease for prior period tax positions |  |  | (267 | ) |  |  | (695 | ) |  |  | (24,154 | )
Increase for prior period tax positions |  |  | 259 |  |  |  | 263 |  |  |  | 7,023 |
Increase for current period tax positions |  |  | 1,490 |  |  |  | 1,354 |  |  |  | 1,510 |
Ending balance of unrecognized tax benefits |  | $ | 56,567 |  |  | $ | 55,085 |  |  | $ | 54,163 |

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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI https://asc.fasb.org/extlink&oid=126976462&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration