Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Benefit
The components of the income tax expense (benefit) for continuing operations are as follows (in thousands):
  Year Ended December 31,
  2020 2019 2018
Current expense (benefit):
Federal $ 10,889  $ 89,471  $ — 
State 589  3,103  424 
Foreign 23  (66) (158)
11,501  92,508  266 
Deferred expense (benefit):
Federal (15,672) 74,627  29,928 
State (3,382) 202  (185)
$ (7,553) $ 167,337  $ 30,009 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of income tax expense (benefit) from continuing operations to the amount computed by applying the statutory federal income tax rate to the net income (loss) from continuing operations is summarized as follows (in thousands):
 
  Year Ended December 31,
  2020 2019 2018
Tax at federal statutory rate $ (2,213) $ 167,294  $ 36,400 
State, net of federal benefit (1,456) 2,466  1,635 
Contingent liabilities (278) 18  948 
Share-based compensation (362) (819) (8,131)
FDII (1,652) (402) — 
Research and development credits (699) (879) (2,758)
Change in uncertain tax positions (650) 441  858 
Rate change for changes in federal or state law (173) (210) 178 
Provision to return adjustments (4,803) (184) (150)
Foreign tax differential on income/loss of foreign subsidiaries (3,839) 57  (14)
Change in valuation allowance (121,876) (1,193) (4,225)
Sale of Vernalis R&D 127,372  —  — 
Expired NOLs and credits —  —  3,054 
Change in derivatives —  —  615 
Other 3,076  748  1,599 
$ (7,553) $ 167,337  $ 30,009 
Schedule of Deferred Tax Assets and Liabilities Deferred tax assets (liabilities) are comprised of the following:
  December 31,
  2020 2019
  (in thousands)
Deferred tax assets:
Net operating loss carryforwards $ 64,147  $ 150,727 
Research credit carryforwards 19,623  14,843 
Stock Compensation 11,994  9,544 
Other 13,120  10,602 
108,884  185,716 
Valuation allowance for deferred tax assets (24,858) (141,338)
Net deferred tax assets $ 84,026  $ 44,378 
Deferred tax liabilities:
Identified intangibles (119,381) (40,768)
     Other (4,923) (10,939)
Net deferred tax liabilities $ (124,304) $ (51,707)
Deferred income taxes, net $ (40,278) $ (7,329)
Schedule of Unrecognized Tax Benefits A reconciliation of the amount of unrecognized tax benefits at December 31, 2020, 2019 and 2018 is as follows (in thousands):
December 31,
2020 2019 2018
Balance at beginning of year $ 28,736  $ 30,289  $ 29,363 
     Additions based on tax positions related to the current year 3,911  543  1,247 
     Additions for tax positions of prior years 179  —  336 
     Reductions for tax positions of prior years (955) (2,096) (657)
Balance at end of year $ 31,871  $ 28,736  $ 30,289