| Summary of Total Consolidated Net Revenues from Strategic Collaborators |
The following tables summarize the effects of adopting ASC 606 on our consolidated financial statements at December 31, 2019, and for the year ended December 31, 2019 (in thousands, except per share data): | | | | | | | | | | | | | | | | As of December 31, 2019 | Consolidated Balance Sheet | | As reported under ASC 606 | | Adjustments | | Balance without adoption of ASC 606 | Deferred revenue, current | | $ | 63,310 |
| | $ | (8,054 | ) | | $ | 55,256 |
| Deferred revenue, non-current | | 138,995 |
| | 4,012 |
| | 143,007 |
| Accumulated deficit | | (1,496,454 | ) | | 6,785 |
| | (1,489,669 | ) |
| | | | | | | | | | | | | | | | Year Ended December 31, 2019 | Consolidated Statement of Operations | | As reported under ASC 606 | | Adjustments | | Amount without adoption of ASC 606 | Revenue: | | | | | | | Collaboration revenue | | $ | 42,803 |
| | $ | 2,767 |
| | $ | 45,570 |
| Collaboration revenue from related party | | 5,233 |
| | 32,002 |
| | 37,235 |
| Total revenue | | 60,209 |
| | 34,769 |
| | 94,978 |
| Loss from operations | | (545,720 | ) | | 34,769 |
| | (510,951 | ) | Loss before income taxes | | (514,716 | ) | | 34,769 |
| | (479,947 | ) | Net loss | | (514,021 | ) | | 34,769 |
| | (479,252 | ) | Net loss per share - basic and diluted | | (1.55 | ) | | 0.10 |
| | (1.45 | ) |
The cumulative effect of applying both ASC 606 and ASC 842 on our consolidated balance sheets as of January 1, 2019 was as follows (in thousands): | | | | | | | | | | | | | | | | | | | | Balance as of December 31, 2018 (1) | | Effect of the Adoption of | | Balance as of January 1, 2019 | | | | ASC 842 | | ASC 606 | | Assets: | | | Accounts receivable | | $ | 11,686 |
| | $ | — |
| | $ | (2,738 | ) | | $ | 8,948 |
| Prepaid expenses and other current assets | | 28,399 |
| | (300 | ) | | — |
| | 28,099 |
| Property and equipment, net | | 211,977 |
| | (2,483 | ) | | — |
| | 209,494 |
| Right-of-use assets, operating leases | | — |
| | 63,334 |
| | — |
| | 63,334 |
| Total assets | | $ | 1,962,149 |
| | $ | 60,551 |
| | $ | (2,738 | ) | | $ | 2,019,962 |
| Liabilities and Shareholders’ Equity: | | | | | | | | | Deferred revenue | | $ | 109,056 |
| | $ | — |
| | $ | (27,281 | ) | | $ | 81,775 |
| Other current liabilities | | 3,464 |
| | 5,867 |
| | — |
| | 9,331 |
| Deferred revenue, non-current | | 165,352 |
| | — |
| | (3,441 | ) | | 161,911 |
| Operating lease liabilities, non-current | | — |
| | 64,250 |
| | — |
| | 64,250 |
| Finance lease liabilities, non-current | | — |
| | 37,718 |
| | — |
| | 37,718 |
| Deferred lease obligation, non-current | | 10,006 |
| | (10,006 | ) | | — |
| | — |
| Lease financing obligation | | 33,489 |
| | (33,489 | ) | | — |
| | — |
| Accumulated deficit | | (1,006,627 | ) | | (3,789 | ) | | 27,984 |
| | (982,432 | ) | Total liabilities and shareholders’ equity | | $ | 1,962,149 |
| | $ | 60,551 |
| | $ | (2,738 | ) | | $ | 2,019,962 |
|
_______ (1) As reported in our 2018 Annual Report on Form 10-K. The following table summarizes our total consolidated net revenue from our strategic collaborators for the periods presented (in thousands): | | | | | | | | | | | | | | | | Years Ended | Collaboration Revenue by Strategic Collaborator: | | December 31, 2019
as reported
(under ASU 606) | | December 31, 2019
without adoption of 606
(under ASC 605) | | December 31, 2018
as reported
(under ASC 605) | Merck | | $ | 36,608 |
| | $ | 38,977 |
| | $ | 66,082 |
| AstraZeneca | | 5,233 |
| | 37,235 |
| | 45,993 |
| Vertex | | 6,195 |
| | 6,593 |
| | 10,437 |
| Total collaboration revenue | | $ | 48,036 |
| | $ | 82,805 |
| | $ | 122,512 |
|
|
| Changes in Balances of Receivables and Contract Liabilities |
The following table presents changes in the balances of our receivables and contract liabilities related to our strategic collaboration agreements during the year ended December 31, 2019 (in thousands): | | | | | | | | | | | | | | | | | | | | January 1, 2019 | | Additions | | Deductions | | December 31, 2019 | Contract Assets: | | | | | | | | | Accounts receivable | | $ | 4,612 |
| | $ | 11,890 |
| | $ | (14,530 | ) | | $ | 1,972 |
| Contract Liabilities: | | | | | | | | | Deferred revenue | | $ | 240,924 |
| | $ | 10,591 |
| | $ | (51,987 | ) | | $ | 199,528 |
|
During the year ended December 31, 2019, we recognized the following revenue as a result of the change in the contract liability balances related to our collaboration agreements (in thousands): | | | | | | | Revenue recognized in the period from: | | | Year Ended December 31, 2019 | Amounts included in contract liabilities at the beginning of the period (1) | | | $ | 51,987 |
|
(1) We first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. If additional consideration is received on those contracts in subsequent periods, we assume all revenue recognized in the reporting period first applies to the beginning contract liability. |