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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Schedule of the components of income tax benefit | The components of the income tax expense (benefit) for continuing operations are as follows (in thousands):
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014 |
Current expense (benefit): |  |  |  |  |  |
Federal | $ | 21 |  |  | $ | 11 |  |  | $ | 15 |  |
State | 12 |  |  | 7 |  |  | 19 |  |
| 33 |  |  | 18 |  |  | 34 |  |
Deferred expense (benefit): |  |  |  |  |  |
Federal | 10,534 |  |  | (167,413 | ) |  | 406 |  |
State | (240 | ) |  | (24,720 | ) |  | (30 | ) |
| $ | 10,327 |  |  | $ | (192,115 | ) |  | $ | 410 |  |
Schedule of deferred tax assets and liabilities | Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2016 and 2015 are shown below. The Company assesses the positive and negative evidence to determine if sufficient future taxable income will be generated to use the existing deferred tax assets. The Company's evaluation of evidence resulted in management concluding that the majority of the Company's deferred tax assets will be realized. However, the Company maintains a valuation allowance to offset certain net deferred tax assets as management believes realization of such assets are uncertain as of December 31, 2016, 2015 and 2014. The valuation allowance increased $6.3 million in 2016, decreased $231.7 million in 2015 and decreased $7.2 million in 2014.
| December 31,
| 2016 |  | 2015
| (in thousands)
Deferred assets: |  |  |
Net operating loss carryforwards | $ | 150,226 |  |  | $ | 160,595 |
Research credit carryforwards | 26,878 |  |  | 25,613 |
Fixed assets and intangibles | 4,385 |  |  | 8,839 |
Accrued expenses | 943 |  |  | 1,523 |
Contingent liabilities | 578 |  |  | 707 |
Deferred revenue | — |  |  | 3 |
Present value of royalties | 591 |  |  | 3,007 |
Deferred rent | 45 |  |  | 68 |
Capital Loss Carryforward | 4,432 |  |  | — |
Viking Equity Method Investment | 5,692 |  |  | 1,840 |
Other | 19,312 |  |  | 15,441 |
| 213,082 |  |  | 217,636 |
Valuation allowance for deferred tax assets | (15,349 | ) |  | (9,066 | )
Net deferred tax assets | $ | 197,733 |  |  | $ | 208,570 |
Deferred tax liabilities: |  |  |
Retrophin fair value adjustment | $ | (52 | ) |  | $ | (1,256 | )
Convertible debt | (1,196 | ) |  | (1,844 | )
Identified intangibles | (68,631 | ) |  | (12,770 | )
Identified indefinite lived intangibles | (3,963 | ) |  | (3,617 | )
Total | $ | 123,891 |  |  | $ | 189,083 |
Schedule of effective income tax rate reconciliation | A reconciliation of income tax expense (benefit) from continuing operations to the amount computed by applying the statutory federal income tax rate to the net income (loss) from continuing operations is summarized as follows:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
Amounts computed at statutory federal rate | $ | 2,786 |  |  | $ | 13,198 |  |  | $ | 3,843 |
State taxes net of federal benefit | 175 |  |  | 386 |  |  | 697 |
Meals & entertainment | 16 |  |  | 16 |  |  | 9 |
Imputed interest | (1 | ) |  | (161 | ) |  | 53 |
Section 162(m) limitation | 94 |  |  | 197 |  |  | 490 |
Contingent liabilities | 1,225 |  |  | 1,684 |  |  | 1,748 |
Stock-based compensation | 263 |  |  | 140 |  |  | 89 |
Expired NOLs | — |  |  | 232 |  |  | 88 |
Research and development credits | (1,525 | ) |  | 304 |  |  | (113 | )
Change in uncertain tax positions | 1,423 |  |  | 27,188 |  |  | 7 |
Rate change for changes in state law | 25 |  |  | (5,756 | ) |  | 119 |
APIC Excess Tax Benefit True Up | (622 | ) |  | — |  |  | — |
Increase in deferred tax assets from completion of 382 analysis | (120 | ) |  | 3,329 |  |  | 43 |
Avinza true up | — |  |  | (2,107 | ) |  | — |
Change in valuation allowance | 6,283 |  |  | (231,370 | ) |  | (7,243 | )
Other | 305 |  |  | 605 |  |  | 580 |
| $ | 10,327 |  |  | $ | (192,115 | ) |  | $ | 410 |
Schedule of unrecognized tax benefits | A reconciliation of the amount of unrecognized tax benefits at December 31, 2016, 2015 and 2014 is as follows (in thousands):
| December 31,
| 2016 |  | 2015 |  | 2014
Balance at beginning of year | $ | 36,452 |  |  | $ | 8,524 |  |  | $ | 8,504 |
Additions based on tax positions related to the current year | 70 |  |  | 154 |  |  | 40 |
Additions for tax positions of prior years | 2,408 |  |  | 28,224 |  |  | — |
Reductions for tax positions of prior years | (160 | ) |  | (450 | ) |  | (20 | )
Balance at end of year | $ | 38,770 |  |  | $ | 36,452 |  |  | $ | 8,524 |

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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 + Details
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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure of the change in unrecognized tax benefits, excluding amounts pertaining to examined tax returns. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=65882285&loc=SL6600010-109319 + Details
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