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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Provision (Benefit) for Income Taxes

The Company’s provision (benefit) for income taxes consists of the following:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2021

 

 

2020

 

 

2019

 

Current income tax provision (benefit):

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

2,700

 

 

$

2,943

 

 

$

(471

)

U.S. state

 

 

1,079

 

 

 

1,396

 

 

 

354

 

Rest of world

 

 

3

 

 

 

 

 

 

 

Deferred income tax provision (benefit):

 

 

 

 

 

 

 

 

 

 

 

 

U.S. federal

 

 

5,908

 

 

 

9,876

 

 

 

(1,503

)

U.S. state

 

 

(827

)

 

 

109

 

 

 

881

 

Ireland

 

 

 

 

 

 

 

 

303

 

Total tax provision (benefit)

 

$

8,863

 

 

$

14,324

 

 

$

(436

)

Schedule of (Loss) Income Before Provision for Income Taxes by Geographical Area

The distribution of the Company’s loss before the provision (benefit) for income taxes by geographical area consists of the following:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2021

 

 

2020

 

 

2019

 

Ireland

 

$

(54,070

)

 

$

(138,070

)

 

$

(141,869

)

U.S.

 

 

14,764

 

 

 

41,599

 

 

 

(55,102

)

Rest of world

 

 

 

 

 

(66

)

 

 

(85

)

Loss before provision (benefit) for income taxes

 

$

(39,306

)

 

$

(96,537

)

 

$

(197,056

)

Schedule of Components of Net Deferred Tax Assets (Liabilities)

The components of the Company’s net deferred tax assets (liabilities) consists of the following:

 

 

 

December 31,

 

 

December 31,

 

(In thousands)

 

2021

 

 

2020

 

Deferred tax assets:

 

 

 

 

 

 

 

 

NOL carryforwards

 

$

222,508

 

 

$

233,755

 

Tax credits

 

 

58,704

 

 

 

59,098

 

Accrued expenses and reserves

 

 

52,308

 

 

 

49,730

 

Share-based compensation

 

 

40,455

 

 

 

44,480

 

Other

 

 

7,758

 

 

 

6,651

 

Less: valuation allowance

 

 

(249,112

)

 

 

(253,649

)

Total deferred tax assets

 

 

132,621

 

 

 

140,065

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

(50,187

)

 

 

(52,707

)

Other

 

 

(1,150

)

 

 

(1,697

)

Total deferred tax liabilities

 

 

(51,337

)

 

 

(54,404

)

Net deferred tax assets

 

$

81,284

 

 

$

85,661

 

 

 

Schedule of Activity in Valuation Allowance Associated with Deferred taxes

The activity in the valuation allowance associated with deferred taxes consists of the following:

 

(In thousands)

 

Balance at Beginning of Period

 

 

(Additions) / Reductions (1)

 

 

Balance at

End of Period

 

Deferred tax asset valuation allowance for the year ended December 31, 2019

 

$

(219,093

)

 

$

(22,966

)

 

$

(242,059

)

Deferred tax asset valuation allowance for the year ended December 31, 2020

 

$

(242,059

)

 

$

(11,590

)

 

$

(253,649

)

Deferred tax asset valuation allowance for the year ended December 31, 2021

 

$

(253,649

)

 

$

4,537

 

 

$

(249,112

)

 

(1)

The (additions)/reductions in each of the periods presented relate primarily to Irish NOLs. Additionally, in 2019 the Company’s valuation allowance was increased by $3.0 million as a result of the attributes acquired as part of the acquisition of Rodin.

Schedule of Reconciliation of Federal Statutory Tax Rate to its Effective Tax Rate

A reconciliation of the Company’s statutory tax rate to its effective tax rate is as follows:

 

 

 

Year Ended December 31,

 

 

(In thousands, except percentage amounts)

 

2021

 

 

 

2020

 

 

 

2019

 

 

Statutory tax rate

 

 

12.5

 

%

 

 

12.5

 

%

 

 

12.5

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes at statutory rate

 

$

(4,913

)

 

 

$

(12,067

)

 

 

$

(24,632

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

7,841

 

 

 

 

8,972

 

 

 

 

6,287

 

 

Foreign rate differential(1)

 

 

5,811

 

 

 

 

7,798

 

 

 

 

5,390

 

 

Change in valuation allowance

 

 

(4,537

)

 

 

 

11,590

 

 

 

 

19,882

 

 

Intercompany amounts(2)

 

 

10,707

 

 

 

 

6,234

 

 

 

 

(1,125

)

 

Irish rate differential(3)

 

 

1,817

 

 

 

 

2,511

 

 

 

 

(146

)

 

Uncertain tax positions

 

 

704

 

 

 

 

811

 

 

 

 

776

 

 

Non deductible lobbying expenses

 

 

637

 

 

 

 

683

 

 

 

 

736

 

 

U.S. state income taxes, net of U.S. federal benefit

 

 

248

 

 

 

 

1,298

 

 

 

 

1,051

 

 

Federal tax law change(4)

 

 

-

 

 

 

 

248

 

 

 

 

(8,111

)

 

In-process R&D(5)

 

 

2,724

 

 

 

 

84

 

 

 

 

10,824

 

 

Foreign derived intangible income

 

 

(3,875

)

 

 

 

(3,125

)

 

 

 

(3,450

)

 

R&D credit

 

 

(8,488

)

 

 

 

(11,198

)

 

 

 

(8,846

)

 

Other permanent items(6)

 

 

187

 

 

 

 

485

 

 

 

 

928

 

 

Income tax provision (benefit)

 

$

8,863

 

 

 

$

14,324

 

 

 

$

(436

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 

(22.5

)

%

 

 

(14.8

)

%

 

 

0.2

 

%

 

(1)

Represents income or losses of non-Irish subsidiaries, including U.S. subsidiaries, subject to tax at a rate other than the Irish statutory rate.

(2)

Intercompany amounts include cross-territory eliminations, the pre-tax effect of which has been eliminated in arriving at the Company's consolidated loss before taxes.

(3)

Represents income or losses of Irish companies subject to tax at a rate other than the Irish statutory rate.

 

(4)

During the year ended December 31, 2019, federal tax law change represents federal income tax benefit related to the foreign derived intangible income deductions for 2018 following the publications by the IRS and the Department of Treasury of proposed regulations in March 2019.

(5)

Represents the tax effect of the research and development expense recorded in connection with the acquisition of Rodin.

(6)

Other permanent items include, but are not limited to, non-deductible meals and entertainment expenses and non-deductible compensation of senior officers of the Company.

Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

 

 

Unrecognized

 

(In thousands)

 

Tax Benefits

 

Balance, December 31, 2018

 

$

6,081

 

Additions based on tax positions related to prior periods

 

 

38

 

Additions based on tax positions related to the current period

 

 

738

 

Balance, December 31, 2019

 

$

6,857

 

Additions based on tax positions related to prior periods

 

 

15

 

Additions based on tax positions related to the current period

 

 

796

 

Balance, December 31, 2020

 

$

7,668

 

Reductions based on tax positions related to prior periods

 

 

(27

)

Additions based on tax positions related to the current period

 

 

731

 

Balance, December 31, 2021

 

$

8,372