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Income Taxes | 12 Months Ended
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Dec. 31, 2012
Income Taxes | (11) Income Taxes As of December 31, 2012, interest and penalties related to any uncertain tax positions have been insignificant. The Company recognizes interest and penalties related to uncertain tax positions in the provision for income taxes. The total amount of unrecognized tax benefits that would affect the Company’s effective tax rate if recognized is $1.2 million as of December 31, 2012, compared to $1.0 million as of December 31, 2011. The following is a reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31, 2012, 2011 and 2010:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (In thousands) |
Beginning uncertain tax benefits |  | $ | 997 |  |  | $ | 558 |  |  | $ | 304 |
Current year—increases |  |  | 294 |  |  |  | 439 |  |  |  | 254 |
Current year—decreases |  |  | (48 | ) |  |  | — |  |  |  | — |
Ending uncertain tax benefits |  | $ | 1,243 |  |  | $ | 997 |  |  | $ | 558 |
The Company files income tax returns in the U.S., Ireland and United Kingdom. The Company remains subject to tax examinations in the following jurisdictions at December 31, 2012:
Jurisdiction |  | Tax Years |
United States |  |  | 2009-2012 |
Ireland |  |  | 2007-2012 |
United Kingdom |  |  | 2011-2012 |
The Company expects gross liabilities of $256,000 to expire in 2013. The components of loss from operations before taxes were as follows at December 31:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (In thousands) |
United States |  | $ | 1,874 |  |  | $ | 1,019 |  |  | $ | 1,987 |
Ireland and United Kingdom |  |  | (171,942 | ) |  |  | (67,629 | ) |  |  | (252,077 | )
|  | $ | (170,068 | ) |  | $ | (66,610 | ) |  | $ | (250,090 | )
The expense (benefit) from income taxes shown in the accompanying consolidated statements of operations consists of the following for fiscal 2012, 2011 and 2010:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (In thousands) |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal-U.S. |  | $ | 10,265 |  |  | $ | 3,908 |  |  | $ | 1,068 |
State-U.S. |  |  | 2,565 |  |  |  | 1,101 |  |  |  | 122 |
Total Current |  | $ | 12,830 |  |  | $ | 5,009 |  |  | $ | 1,190 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal-U.S. |  |  | (2,803 | ) |  |  | (1,936 | ) |  |  | (1,604 | )
State-U.S. |  |  | (911 | ) |  |  | (557 | ) |  |  | (87 | )
Ireland and United Kingdom |  |  | (22,515 | ) |  |  | (5,566 | ) |  |  | (6,035 | )
Change in valuation allowance |  |  | 22,515 |  |  |  | 5,566 |  |  |  | 6,035 |
Total Deferred |  | $ | (3,714 | ) |  | $ | (2,493 | ) |  | $ | (1,691 | )
|  | $ | 9,116 |  |  | $ | 2,516 |  |  | $ | (501 | )
The expense (benefit) from income taxes differs from the amount computed by applying the statutory income tax rate to income before taxes due to the following for fiscal 2012, 2011 and 2010:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (In thousands) |
Benefits from taxes at statutory rate |  | $ | (42,517 | ) |  | $ | (16,652 | ) |  | $ | (62,523 | )
Rate differential |  |  | 13,249 |  |  |  | 3,952 |  |  |  | 3,871 |
Research credits |  |  | — |  |  |  | — |  |  |  | (1,014 | )
Change in valuation reserves |  |  | 22,515 |  |  |  | 7,120 |  |  |  | 6,035 |
Permanent & other |  |  | 6,809 |  |  |  | 2,209 |  |  |  | 17 |
Warrant derivative liabilities |  |  | 8,904 |  |  |  | 5,643 |  |  |  | 52,761 |
Other |  |  | 156 |  |  |  | 244 |  |  |  | 352 |
|  | $ | 9,116 |  |  | $ | 2,516 |  |  | $ | (501 | )
The tax residency of Amarin Corporation plc migrated from the United Kingdom (UK) to Ireland in April 2008. As a result of the migration, unutilized UK trading losses at the date of migration are no longer available for offset against taxable profits. The Company is subject to corporate tax rate in Ireland of 25% for non-trading activities and 12.5% for trading activities. For the years ended December 31, 2012, 2011 and 2010, the Company applied the statutory corporate tax rate of 25% for Amarin Corporation plc, reflecting the non-trading tax rate in Ireland. However, for Amarin Pharmaceuticals Ireland Limited, a wholly-owned subsidiary of Amarin Corporation plc, the Company applied the 12.5% Irish trading tax rate. The income tax effect of each type of temporary difference comprising the net deferred tax asset at December 31 is as follows:
|  | 2012 |  |  | 2011 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating losses |  | $ | 55,086 |  |  | $ | 32,841 |
Stock based compensation |  |  | 9,155 |  |  |  | 5,706 |
Depreciation |  |  | (189 | ) |  |  | 40 |
Tax credits |  |  | 5 |  |  |  | 6 |
Other reserves and accrued liabilities |  |  | 818 |  |  |  | 53 |
Net deferred tax asset |  |  | 64,875 |  |  |  | 38,646 |
Less: valuation allowance |  |  | (55,894 | ) |  |  | (33,379 | )
|  | $ | 8,981 |  |  | $ | 5,267 |
The Company assesses whether it is more-likely-than-not that the Company will realize its deferred tax assets. The Company determined that it was more-likely-than-not that the Irish, UK, and Israeli net operating losses and the related deferred tax assets would not be realized in future periods and a full valuation allowance has been provided for all periods. The Company has combined Irish, UK, and Israeli net operating loss carryforwards of $315.6 million, which began to expire in 2011. In addition, the Company has available U.S. Federal tax credit carryforwards of $0.4 million and state tax credit carryforwards of $2.3 million. These carryforwards which will expire between 2029 and 2031 may be used to offset future taxable income, if any. The Company expects to recognize a tax benefit related to the extension of the research and development credits in the first quarter of 2013 and expects to record a discrete benefit of approximately $1.0 million.

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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 Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: 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=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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 Reference 7: 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 8: 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 + Details
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