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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Schedule of 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, |  |  |  |
| 2018 |  | 2017 |  | 2016
Current expense (benefit): |  |  |  |  |
Federal | $ | — |  | $ | — |  | $ | 21
State | 424 |  | 111 |  | 12
Foreign | (158) |  | 261 |  | —
| 266 |  | 372 |  | 33
Deferred expense (benefit): |  |  |  |  |
Federal | 29,928 |  | 44,075 |  | 10,534
State | (185) |  | 228 |  | (240)
Foreign | — |  | — |  | —
| $ | 30,009 |  | $ | 44,675 |  | $ | 10,327
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 (in thousands):
| Year Ended December 31, |  |  |  |
| 2018 |  | 2017 |  | 2016
Tax at federal statutory rate | $ | 36,400 |  | $ | 20,031 |  | $ | 2,786
State, net of federal benefit | 1,635 |  | 622 |  | 175
Contingent liabilities | 948 |  | 903 |  | 1,225
Share-based compensation | (8,131) |  | (4,019) |  | 263
Research and development credits | (2,758) |  | (2,821) |  | (1,525)
Change in uncertain tax positions | 858 |  | 1,308 |  | 1,423
Rate change for changes in federal or state law | 178 |  | 32,429 |  | 25
Change in valuation allowance | (4,225) |  | (4,169) |  | 6,283
Expired NOLs and credits | 3,054 |  | — |  | —
Change in derivatives | 615 |  | — |  | —
Other | 1,435 |  | 391 |  | (328)
| $ | 30,009 |  | $ | 44,675 |  | $ | 10,327
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities as of December 31, 2018 and 2017 are shown below. We assess the positive and negative evidence to determine if sufficient future taxable income will be generated to use the existing deferred tax assets. Our evaluation of evidence resulted in management concluding that the majority of our deferred tax assets will be realized. However, we maintain a valuation allowance to offset certain net deferred tax assets as management believes realization of such assets are uncertain as of December 31, 2018, 2017 and 2016. The valuation allowance decreased $2.5 million in 2018, decreased $8.4 million in 2017 and increased $6.3 million in 2016.
| December 31, |  |
| 2018 |  | 2017
| (in thousands) |  |
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 57,181 |  | $ | 90,272
Research credit carryforwards | 31,101 |  | 30,677
Fixed assets and intangibles | 1,637 |  | 1,984
Accrued expenses | 657 |  | 845
Deferred revenue | 957 |  | 17
Capital Loss Carryforward | — |  | 1,609
Investment in Viking | — |  | 5,137
Other | 11,430 |  | 12,499
| 102,963 |  | 143,040
Valuation allowance for deferred tax assets | (4,476) |  | (6,987)
Net deferred tax assets | $ | 98,487 |  | $ | 136,053
Deferred tax liabilities: |  |  |
Retrophin fair value adjustment | (179) |  | (243)
Convertible debt | (2,905) |  | (737)
Identified intangibles | (44,643) |  | (48,237)
Identified indefinite lived intangibles | (1,759) |  | (2,414)
Investment in Viking | (2,480) |  | —
Net deferred tax liabilities | $ | (51,966) |  | $ | (51,631)
Deferred income taxes, net | $ | 46,521 |  | $ | 84,422
Schedule of Unrecognized Tax Benefits | A reconciliation of the amount of unrecognized tax benefits at December 31, 2018, 2017 and 2016 is as follows (in thousands):
| December 31, |  |  |  |
| 2018 |  | 2017 |  | 2016
Balance at beginning of year | $ | 29,363 |  | $ | 38,770 |  | $ | 36,452
Additions based on tax positions related to the current year | 1,247 |  | 1,067 |  | 70
Additions for tax positions of prior years | 336 |  | 109 |  | 2,408
Reductions for tax positions of prior years | (657) |  | (10,583) |  | (160)
Balance at end of year | $ | 30,289 |  | $ | 29,363 |  | $ | 38,770

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
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