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Income Taxes (Tables)

12 Months Ended

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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Income loss before provision for income taxes.

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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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