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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income (Loss) Before Provision for Income Taxes | Income (loss) before provision for income taxes includes the following components (in thousands):
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Domestic | $ | (441,494 | ) |  | $ | 680,423 |  |  | $ | (97,938 | )
Foreign | 1,440 |  |  | 2,302 |  |  | 1,862 |
Income (loss) before provision for income taxes | $ | (440,054 | ) |  | $ | 682,725 |  |  | $ | (96,076 | )
Provision for Income Taxes | The provision for income taxes consists of the following (in thousands):
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | 139 |  |  | 699 |  |  | 1 |
Foreign | 495 |  |  | 620 |  |  | 580 |
Total Current | 634 |  |  | 1,319 |  |  | 581 |
Deferred: |  |  |  |  |
Federal | — |  |  | — |  |  | — |
State | — |  |  | — |  |  | — |
Foreign | (21 | ) |  | 93 |  |  | 35 |
Total Deferred | (21 | ) |  | 93 |  |  | 35 |
Provision for income taxes | $ | 613 |  |  | $ | 1,412 |  |  | $ | 616 |
Income Tax Provision Related to Continuing Operations | Income tax provision related to continuing operations differs from the amount computed by applying the statutory income tax rate of 21% for the years ended December 31, 2019 and 2018 and 35% for the year ended December 31, 2017 to pretax income (loss) as follows (in thousands):
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Income tax expense (benefit) at federal statutory rate | $ | (92,411 | ) |  | $ | 143,372 |  |  | $ | (33,627 | )
Research credits | (10,511 | ) |  | (17,295 | ) |  | (8,038 | )
Sale of future royalties | (7,624 | ) |  | (6,995 | ) |  | (8,236 | )
Stock-based compensation | (672 | ) |  | (66,716 | ) |  | (20,665 | )
Premium on equity issuance | — |  |  | (12,551 | ) |  | — |
Change in valuation allowance | 104,440 |  |  | (46,885 | ) |  | (186,124 | )
Non-cash interest expense on liability related to sale of future royalties | 5,259 |  |  | 4,451 |  |  | 6,604 |
Non-deductible officers’ compensation | 737 |  |  | 3,182 |  |  | 2,547 |
Tax law changes | 23 |  |  | 45 |  |  | 248,155 |
Other | 1,372 |  |  | 804 |  |  | — |
Provision for income taxes | $ | 613 |  |  | $ | 1,412 |  |  | $ | 616 |
Significant Components of Deferred Tax Assets and Liabilities | We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. Significant components of our deferred tax assets for federal and state income taxes are as follows (in thousands):
| December 31,
| 2019 |  | 2018
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 399,361 |  |  | $ | 300,693 |
Research and other credits | 128,015 |  |  | 116,955 |
Operating lease liabilities | 36,907 |  |  | — |
Stock-based compensation | 30,875 |  |  | 21,518 |
Property, plant and equipment | 5,021 |  |  | 2,124 |
Capitalized research expenses | 3,705 |  |  | 8,072 |
Reserves and accruals | 2,934 |  |  | 8,066 |
Deferred revenue | 1,908 |  |  | 4,467 |
Deferred tax assets before valuation allowance | 608,726 |  |  | 461,895 |
Valuation allowance for deferred tax assets | (575,087 | ) |  | (460,455 | )
Total deferred tax assets | 33,639 |  |  | 1,440 |
Operating lease right-of-use assets | (31,718 | ) |  | — |
Other | (1,725 | ) |  | (1,270 | )
Total deferred tax liabilities | (33,443 | ) |  | (1,270 | )
Net deferred tax assets | $ | 196 |  |  | $ | 170 |
Unrecognized Tax Benefits | We have the following activity relating to unrecognized tax benefits (in thousands):
| December 31,
| 2019 |  | 2018 |  | 2017
Beginning balance | $ | 27,419 |  |  | $ | 20,483 |  |  | $ | 18,413 |
Tax positions related to current year |  |  |  |  |
Additions: |  |  |  |  |
Federal | 1,365 |  |  | 2,019 |  |  | 1,206 |
State | 48,493 |  |  | 3,645 |  |  | 1,666 |
Reductions | — |  |  | — |  |  | — |
Tax positions related to prior year |  |  |  |  |
Additions: |  |  |  |  |
Federal | — |  |  | 669 |  |  | — |
State | 277 |  |  | 603 |  |  | — |
Foreign | — |  |  | — |  |  | — |
Reductions | (144 | ) |  | — |  |  | (802 | )
Settlements | — |  |  | — |  |  | — |
Lapses in statute of limitations | — |  |  | — |  |  | — |
Ending balance | $ | 77,410 |  |  | $ | 27,419 |  |  | $ | 20,483 |

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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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