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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Note 14 – Income Taxes The Company’s loss from operations before income tax expense by jurisdiction are as follows (in thousands):
|  | 2015 |  | 2014 |  | 2013 |
Domestic |  | $ | (150,227) |  | $ | (76,742) |  | $ | (48,691) |
Foreign |  |  | (6,710) |  |  | (6,205) |  |  | (3,292) |
Total net loss |  | $ | (156,937) |  | $ | (82,947) |  | $ | (51,983) |
The components of the income tax provision are as follows (in thousands):
|  | 2015 |  | 2014 |  | 2013 |
Current U.S. |  | $ | — |  | $ | — |  | $ | — |
Current foreign |  |  | — |  |  | — |  |  | 25 |
Deferred |  |  | — |  |  | — |  |  | — |
Net provision |  | $ | — |  | $ | — |  | $ | 25 |
Deferred tax assets (liabilities) consist of the following at December 31 (in thousands):
|  | 2015 |  | 2014 |
Net operating losses U.S. |  | $ | 203,284 |  | $ | 148,451 |
Net operating losses foreign |  |  | 8,360 |  |  | 6,535 |
Research tax credits |  |  | 16,491 |  |  | 11,068 |
Other |  |  | 12,903 |  |  | 9,963 |
Total deferred tax assets |  |  | 241,038 |  |  | 176,017 |
Intangibles |  |  | (2,415) |  |  | (2,773) |
Other |  |  | (1,767) |  |  | (321) |
Total deferred tax liabilities |  |  | (4,182) |  |  | (3,094) |
Net deferred tax assets |  |  | 236,856 |  |  | 172,923 |
Less valuation allowance |  |  | (236,856) |  |  | (172,923) |
Deferred tax assets, net |  | $ | — |  | $ | — |
The valuation allowance increased by $63.9 million, $30.4 million and $7.1 million for the years ended December 31, 2015, 2014 and 2013, respectively, due to increases in net deferred tax assets. The differences between the U.S. federal statutory tax rate and the Company’s effective tax rate are as follows:
|  | 2015 |  | 2014 |  | 2013 |
Statutory federal tax rate |  |  | (34) | % |  | (34) | % |  | (34) | %
State income taxes, net of federal benefit |  |  | (3) | % |  | (3) | % |  | (3) | %
Research and development and other tax credits |  |  | (3) | % |  | (2) | % |  | (7) | %
Expiration of net operating losses |  |  | 0 | % |  | 0 | % |  | 0 | %
Release of FIN 48 liability |  |  | (2) | % |  | 0 | % |  | 0 | %
Other |  |  | 1 | % |  | 2 | % |  | 3 | %
Change in valuation allowance |  |  | 41 | % |  | 37 | % |  | 41 | %
|  |  | 0 | % |  | 0 | % |  | 0 | %
Realization of net deferred tax assets is dependent on the Company’s ability to generate future taxable income, which is uncertain. Accordingly, a full valuation allowance was recorded against these assets as of December 31, 2015 and 2014 as management believes it is more likely than not that the assets will not be realizable. The increase in the valuation allowance was due to increased continued losses and credits in the current year. As of December 31, 2015, the Company had tax return reported federal net operating losses and tax credits available as follows (in thousands):
|  | Amount |
Federal net operating losses expiring through the year 2035 |  | $ | 551,433 |
Foreign net operating losses (no expiration) |  |  | 38,001 |
Research tax credits expiring through the year 2035 |  |  | 16,397 |
Alternative-minimum tax credit (no expiration) |  |  | 94 |
Utilization of the net operating loss carryforwards and credits may be subject to an annual limitation due to prior ownership change of the Company. The Company does not expect such limitation, if any, to impact the use of the net operating losses. Beginning in 2006, the windfall equity-based compensation deductions are tracked, but will not be recorded to the balance sheet until management determines more likely than not that such amounts will be utilized. As of December 31, 2015 and 2014, the Company had $13.9 million and $5.0 million of windfall stock compensation deductions, respectively. When realized, the tax benefit associated with these deductions will be credited to additional paid-in capital. These excess benefit deductions are included in the total federal and state net operating losses disclosed above. Tabular Reconciliation of Unrecognized Tax Benefits (in thousands):
|  | Amount |
Unrecognized tax benefits as of January 1, 2014 |  | $ | 4,801 |
Gross increases — tax positions in prior period |  |  | — |
Gross decreases — tax positions in prior period |  |  | — |
Gross increases — current-period tax positions |  |  | — |
Increases (decreases) from settlements |  |  | — |
Unrecognized tax benefits as of December 31, 2014 |  | $ | 4,801 |
Gross increases — tax positions in prior period |  |  | — |
Gross decreases — tax positions in prior period |  |  | 4,587 |
Gross increases — current-period tax positions |  |  | — |
Increases (decreases) from settlements |  |  | — |
Unrecognized tax benefits as of December 31, 2015 |  | $ | 214 |
To the extent these unrecognized tax benefits are ultimately recognized, it would affect the annual effective income tax rate unless otherwise offset by a corresponding change in the valuation allowance. The Company does not expect that the amounts of unrecognized tax benefits will change significantly within the next twelve months. The Company files income tax returns in the U.S. federal jurisdiction and in various states, as well as in Sweden. The Company had tax net operating losses and credit carryforwards that are subject to examination from 1998 through 2015. The statute extends for a number of years beyond the year in which the losses were generated for tax purposes. Since a portion of these carryforwards may be utilized in the future, many of these attribute carryforwards remain subject to examination. The returns in Sweden are subject to examination from 2010 through 2015. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. As of December 31, 2015 and 2014, the Company had no accruals for interest or penalties related to income tax matters.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: 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=6907707&loc=d3e32639-109319 Reference 5: 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=6907707&loc=d3e32537-109319 + Details
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