Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Domestic and Foreign Components of Loss before Provision for Income Taxes

For financial reporting purposes, the components of loss from continuing operations before income taxes are presented in the following table.


	Year Ended December 31,
(In thousands)	2021		2020		2019
United States	$	(193,176)	$	(170,812)	$	(325,769)
Foreign	(34,132)		(55,996)		(93,734)
Total	$	(227,308)	$	(226,808)	$	(419,503)

Summary of Tax Credit Carryforwards

The following table summarizes carryforwards of net operating losses and tax credits as of December 31, 2021.


(in millions)	Amount
Federal net operating losses	$	669.2
State net operating losses	427.7
Foreign net operating losses	289.2
Federal research and development credits	6.4
State research and development credits	4.2
Orphan drug research and development credits	2.0

Reconciliation of Income Tax to Expense (Benefit)

A reconciliation of income tax provision to amounts computed by applying the statutory federal income tax rate to loss from continuing operations before income taxes is shown as follows (in thousands):


	December 31,
	2021		2020		2019
Income tax at federal statutory rate	$	(47,735)	$	(47,630)	$	(88,096)
State taxes, net of federal benefit	(5,803)		(4,316)		(65)
Non-deductible acquired IPR&D charge and other expenses(1)	—		—		52,044
Change in valuation allowance	54,799		40,039		21,155
Impact of foreign rate change on deferred taxes	(12,405)		(2,950)		1,887
Other permanent differences	2,117		3,993		4,101
State tax rate benefit	164		(1,346)		(18)
Foreign rate differential	393		752		1,883
Stock-based compensation	2,484		1,180		(2,674)
Net operating losses surrendered under U.K.’s R&D tax relief scheme	—		—		9,349
State apportionment adjustments	482		(2,673)		48
Impact of foreign exchange rate differences	5,679		(4,532)		—
Credits and other	(70)		58		386
Income tax expense (benefit)	$	105	$	(17,425)	$	—

(1)Represents amounts attributable to our asset acquisition of Modis. See Note 4 for additional information.

Schedule of Deferred Tax Assets

The significant components of deferred tax assets (liabilities) are as follows:


	December 31,
(In thousands)	2021		2020
Deferred tax assets:
Federal, state and foreign net operating loss carryforwards	$	237,708	$	186,963
Capitalized research and development	666		486
Accrued expenses	5,895		2,498
Research and development credits	5,343		5,343
Amortization	2,718		2,949
Lease liability	2,291		2,534
Stock-based compensation	10,212		7,878
Other, net	2,523		2,690
Total deferred tax assets	267,356		211,341
Less: valuation allowance	(231,335)		(176,594)
Total deferred tax assets, net of valuation allowance	$	36,021	$	34,747

Deferred tax liabilities:
Operating lease right-of-use asset	$	(1,423)	$	(1,585)
IPR&D	(18,573)		(15,857)
Discount on Notes	(16,025)		(17,305)

Total deferred tax liabilities	(36,021)		(34,747)
Total net deferred tax liabilities	$	—	$	—

For the year ended December 31, 2021, a provision for income taxes of $0.1 million has been recognized related primarily to our subsidiaries located outside of the United States.

Summary of Unrecognized Tax Benefits

The following table summarizes the activity related to our unrecognized tax benefits (in thousands):


	December 31,
	2021		2020		2019
Beginning balance of unrecognized tax benefits	$	3,638	$	3,541	$	1,487
Gross increases based on tax positions related to current year	—		—		1,495
Gross increases based on tax positions related to prior years			97		559
Gross decreases based on tax positions related to prior years	—		—		—
Settlements with taxing authorities	—		—		—
Expiration of statute of limitations	—		—		—
Ending balance of unrecognized tax benefits	$	3,638	$	3,638	$	3,541