XML 36 R18.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 11 – INCOME TAXES The benefit for income taxes consisted of the following (in thousands):
|  | Year ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Benefit for income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | — |
State |  |  | — |  |  |  | — |  |  |  | — |
Subtotal |  |  | — |  |  |  | — |  |  |  | — |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (5,563 | ) |  | $ | — |  |  | $ | — |
State |  |  | (159 | ) |  |  | — |  |  |  | — |
Subtotal |  |  | (5,722 | ) |  |  |  |  |  |  |  |
Income tax benefit |  | $ | (5,722 | ) |  | $ | — |  |  | $ | — |
The difference between the benefit for income taxes and the amount computed by applying the federal statutory income tax rate (34%) to loss before taxes is explained as follows (in thousands):
|  | Year ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Tax at federal statutory rate |  | $ | (15,785 | ) |  | $ | (8,982 | ) |  | $ | (9,052 | )
State taxes, net |  |  | 4,840 |  |  |  | (822 | ) |  |  | (4,004 | )
Non-deductible stock compensation |  |  | 1,085 |  |  |  | (148 | ) |  |  | (598 | )
Research credits |  |  | (814 | ) |  |  | (320 | ) |  |  | (280 | )
Change in valuation allowance |  |  | 5,043 |  |  |  | 9,778 |  |  |  | 14,261 |
Other |  |  | (91 | ) |  |  | 494 |  |  |  | (327 | )
Income tax benefit |  | $ | (5,722 | ) |  | $ | — |  |  | $ | — |
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows (in thousands):
|  | December 31, |
|  | 2015 |  |  | 2014 |
Assets: |  |  |  |  |  |  |  |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 93,824 |  |  | $ | 90,921 |
Research and development tax credit carryforwards |  |  | 9,979 |  |  |  | 8,646 |
Stock-based compensation |  |  | 6,853 |  |  |  | 8,171 |
Deferred revenue |  |  | 4,479 |  |  |  | 2,690 |
Other |  |  | 2,807 |  |  |  | 2,471 |
Total deferred tax asset |  |  | 117,942 |  |  |  | 112,899 |
Valuation allowance |  |  | (117,942 | ) |  |  | (112,899 | )
Net deferred tax assets |  | $ | — |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |
Net deferred tax liability related to intangible assets |  |  | — |  |  |  | (748 | )
Total deferred tax liability |  | $ | — |  |  | $ | (748 | )
In October 2013, we acquired Ceregene. The Company recorded goodwill and intangible assets as part of accounting for the acquisition of Ceregene. A portion of the intangible assets acquired were for the use in a particular research and development project IPR&D and are considered indefinite-lived assets with no tax basis. In 2015, the Company impaired these intangible assets and reversed the corresponding deferred tax liability. In 2015 the Company received a $14.5 million disgorgement settlement that was recognized as additional paid-in capital. The disgorgement settlement was recognized net of taxes of $9.5 million, which resulted in an income tax benefit of $5.0 million being recognized in the accompanying consolidated statements of operations for the year ended December 31, 2015. The changes in the fair value of the unrealized gain/loss on securities investment are recorded as a component of accumulated other comprehensive income, net of a provision for income taxes. Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance. The valuation allowance increased by $5.0 million, $9.8 million and $14.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, Sangamo had net operating loss carryforwards for federal and state income tax purposes of approximately $351.3 million and $264.3 million, respectively. If not utilized, the net federal and state operating loss carryforwards will start to expire in 2018 and 2016 respectively. The Company also has federal and state research tax credit carryforwards of $7.8 million and $8.2 million, respectively. The federal research credits will begin to expire in 2018 while the state research credits have no expiration date. Utilization of the Company’s net operating loss carryforwards and research tax credit carryforwards may be subject to substantial annual limitations due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. The annual limitation could result in the expiration of the net operating loss carryforwards and research tax credit carryforwards before utilization. The Company files federal and state income tax returns with varying statutes of limitations. The tax years from 2000 forward remain open to examination due to the carryover of net operating losses or tax credits. The Company also files a UK income tax return, and the tax years from 2008 and thereafter remain open to examination. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of December 31, 2015, the Company had no accrued interest and/or penalties. The unrecognized tax benefits may change during the next year for items that arise in the ordinary course of business. In the event that any unrecognized tax benefits are recognized, the effective tax rate will not be affected. The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):
|  | December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Beginning balance |  | $ | 3,438 |  |  | $ | 3,182 |  |  | $ | 2,735 |
Additions based on tax positions related to the current year |  |  | 557 |  |  |  | 228 |  |  |  | 294 |
Additions for tax positions of prior years |  |  | 4,335 |  |  |  | 28 |  |  |  | 153 |
Reductions for tax positions of prior years |  |  | — |  |  |  | — |  |  |  | — |
Ending balance |  | $ | 8,330 |  |  | $ | 3,438 |  |  | $ | 3,182 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration