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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of loss before income taxes are presented below:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
Domestic | $ | (157,067 | ) |  | $ | (69,287 | ) |  | $ | (83,256 | )
Foreign | (37,084 | ) |  | (17,691 | ) |  | (2,463 | )
Loss before income taxes | $ | (194,151 | ) |  | $ | (86,978 | ) |  | $ | (85,719 | )
The components of income tax expense (benefit) are presented below:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
U.S. federal income taxes: |  |  |  |  |
Current | $ | (17 | ) |  | $ | 22 |  |  | $ | — |
Deferred | 1,396 |  |  | 1,732 |  |  | — |
Foreign income taxes: |  |  |  |  |
Current | (393 | ) |  | (123 | ) |  | (103 | )
Deferred | (5,177 | ) |  | (1,003 | ) |  | — |
State income taxes: |  |  |  |  |
Deferred | 314 |  |  | 388 |  |  | — |
Income tax expense (benefit) | $ | (3,877 | ) |  | $ | 1,016 |  |  | $ | (103 | )
Income tax expense (benefit) for the years ended December 31, 2016, 2015 and 2014 differed from amounts computed by applying the applicable U.S. federal corporate income tax rate of 34% to loss before income taxes as a result of the following:
| 2016 |  | 2015 |  | 2014
Computed statutory income tax benefit | $ | (66,011 | ) |  | $ | (29,573 | ) |  | $ | (29,144 | )
State and provincial income tax benefit, net of federal income taxes | (7,905 | ) |  | (3,157 | ) |  | (3,544 | )
Nondeductible stock based compensation | 3,321 |  |  | 3,182 |  |  | 1,386 |
Nondeductible officer compensation | — |  |  | 2,433 |  |  | — |
Contribution of services by shareholder | — |  |  | — |  |  | 677 |
Research and development tax incentives | (6,350 | ) |  | (348 | ) |  | 258 |
Acquisition and internal restructuring transaction costs | 571 |  |  | 883 |  |  | — |
Enacted change in tax rates | — |  |  | (961 | ) |  | — |
U.S.-foreign rate differential | 3,463 |  |  | 620 |  |  | — |
Other, net | 1,485 |  |  | (98 | ) |  | 1,503 |
| (71,426 | ) |  | (27,019 | ) |  | (28,864 | )
Change in valuation allowance for deferred tax assets | 67,549 |  |  | 28,035 |  |  | 28,761 |
Total income tax expense (benefit) | $ | (3,877 | ) |  | $ | 1,016 |  |  | $ | (103 | )
The tax effects of temporary differences that comprise the deferred tax assets and liabilities as of December 31, 2016 and 2015, are as follows:
| 2016 |  | 2015
Deferred tax assets |  |  |
Allowance for doubtful accounts | $ | 1,676 |  |  | $ | 1,056 |
Inventory | 447 |  |  | 967 |
Equity securities and investments in affiliates | 31,729 |  |  | 10,413 |
Accrued liabilities and long-term debt | 4,168 |  |  | 4,585 |
Stock-based compensation | 8,460 |  |  | 7,223 |
Deferred revenue | 68,056 |  |  | 31,637 |
Research and development tax credits | 10,396 |  |  | 9,113 |
Net operating and capital loss carryforwards | 144,502 |  |  | 135,633 |
Total deferred tax assets | 269,434 |  |  | 200,627 |
Less: Valuation allowance | 256,165 |  |  | 190,174 |
Net deferred tax assets | 13,269 |  |  | 10,453 |
Deferred tax liabilities |  |  |
Property, plant and equipment | 406 |  |  | 160 |
Intangible assets | 29,870 |  |  | 32,095 |
Total deferred tax liabilities | 30,276 |  |  | 32,255 |
Net deferred tax liabilities | $ | (17,007 | ) |  | $ | (21,802 | )
Activity within the valuation allowance for deferred tax assets during the years ended December 31, 2016, 2015 and 2014 was as follows:
| 2016 |  | 2015 |  | 2014
Valuation allowance at beginning of year | $ | 190,174 |  |  | $ | 161,660 |  |  | $ | 131,985 |
Increase (decrease) in valuation allowance as a result of |  |  |  |  |
Mergers and acquisitions, net | (1,416 | ) |  | 1,228 |  |  | 914 |
Current year operations | 67,549 |  |  | 28,035 |  |  | 28,761 |
Foreign currency translation adjustment | (142 | ) |  | (749 | ) |  | — |
Valuation allowance at end of year | $ | 256,165 |  |  | $ | 190,174 |  |  | $ | 161,660 |
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Due to the Company and its subsidiaries' histories of net losses incurred from inception, any corresponding net domestic and certain foreign deferred tax assets have been fully reserved as the Company and its subsidiaries cannot sufficiently be assured that these deferred tax assets will be realized. The components of the deferred tax assets and liabilities as of the date of the mergers and acquisitions by the Company prior to consideration of the valuation allowance are substantially similar to the components of deferred tax assets presented herein. The Company's past issuances of stock and mergers and acquisitions have resulted in ownership changes as defined in Section 382 of the Internal Revenue Code of 1986, as amended ("Section 382"). As a result, utilization of portions of the net operating losses may be subject to annual limitations. As of December 31, 2016, approximately $15,100 of the Company's domestic net operating losses generated prior to 2008 are limited by Section 382 to annual usage limits of approximately $1,500. As of December 31, 2016, approximately $18,600 of the Company's domestic net operating losses were inherited via acquisition and are limited based on the value of the target at the time of the transaction. As of December 31, 2016, the Company has loss carryforwards for U.S. federal income tax purposes of approximately $252,971 available to offset future taxable income and federal and state research and development tax credits of $7,514, prior to consideration of annual limitations that may be imposed under Section 382. These carryforwards will begin to expire in 2022. Of these loss carryforwards, $44,929 relate to benefits from stock compensation deductions that will be recorded as a component of paid-in capital when realized. The Company's direct foreign subsidiaries have foreign loss carryforwards of approximately $119,155, most of which do not expire. The Company does not record deferred taxes on the undistributed earnings of its direct foreign subsidiaries because it does not expect the temporary differences related to those unremitted earnings to reverse in the foreseeable future. As of December 31, 2016, the Company's direct foreign subsidiaries had accumulated deficits of approximately $27,885. Future distributions of accumulated earnings of the Company's direct foreign subsidiaries may be subject to U.S. income and foreign withholding taxes. The Company does not file a consolidated income tax return with AquaBounty or BioPop. As of December 31, 2016, AquaBounty has loss carryforwards for federal and foreign income tax purposes of approximately $22,215 and $12,925, respectively, and foreign tax credits of approximately $2,428 available to offset future taxable income, prior to consideration of annual limitations that may be imposed under Section 382 or analogous foreign provisions. These carryforwards will begin to expire in 2018. As a result of the Company's ownership in AquaBounty passing 50% in 2013, an annual Section 382 of approximately $900 per year will apply to domestic losses and credits carried forward by AquaBounty from prior years, which are also subject to prior Section 382 limitations. As of December 31, 2016, BioPop had loss carryforwards of approximately $1,402 for federal income tax purposes available to offset future taxable income. The Company and its subsidiaries do not have material unrecognized tax benefits as of December 31, 2016. The Company does not anticipate significant changes in the amount of unrecognized tax benefits in the next 12 months. The Company's tax returns for years 2004 and forward are subject to examination by federal or state tax authorities due to the carryforward of unutilized net operating losses and research and development tax credits.

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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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
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