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Income Taxes (Tables)

12 Months Ended

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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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.

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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.

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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.

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Tabular disclosure of the change in unrecognized tax benefits, excluding amounts pertaining to examined tax returns.

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