Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of income tax expense (benefit)

The income tax expense (benefit) consisted of the following (in thousands):

	Years Ended December 31,
	2016			2015			2014
Current:
Federal	$	—		$	—		$	—
State	4,259			2,058			—
Total current	$	4,259		$	2,058		$	—
Deferred:
Federal	$	9,815		$	9,819		$	(142,884	)
State	(2,536		)	(4,812		)	(10,275		)
Total deferred	$	7,279		$	5,007		$	(153,159	)
Total income tax expense (benefit)	$	11,538		$	7,065		$	(153,159	)

Schedule of reconciliation of the statutory U.S. federal income tax rate to the entity's effective income tax rate

The reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate was as follows:

	Years Ended December 31,
	2016		2015		2014
Statutory U.S. federal tax rate	35.0	%	35.0	%	(34.0	)%
State taxes, net of federal benefit	6.4		0.1		(7.9	)
Equity-based compensation expense	34.0		0.4		10.6
Contingent consideration	69.9		4.7		3.1
Transaction costs	—		3.9		9.7
Other permanent items, net	21.2		3.2		3.2
Tax credits	(32.3	)	(1.7	)	(3.0	)
Write-down of acquired state net operating losses	114.2		—		—
Valuation allowance	(115.2	)	(28.0	)	(864.9	)
Other, net	(5.8	)	0.1		—
Effective tax rate	127.4	%	17.7	%	(883.2	)%

Schedule of components of the entity's deferred tax assets and liabilities

The components of our deferred tax assets and liabilities were as follows (in thousands):

	December 31,
	2016			2015
Assets
Net operating loss carryforwards	$	116,275		$	172,944
Tax credit carryforwards	9,415			6,262
Deferred revenue	1,811			626
Equity-based compensation expense	8,045			5,464
Capitalized research & development	18,284			25,216
Reserves	8,018			8,900
Contingent consideration	4,140			1,258
Other	9,769			9,636
Liabilities
Property, plant and equipment depreciation	(2,145		)	(2,844		)
Intangible assets and inventory	(367,667		)	(400,357		)
Debt instruments	(1,040		)	(1,213		)
Other	(542		)	(3,178		)
	(195,637		)	(177,286		)
Valuation allowance	(1,429		)	(11,859		)
Net deferred tax liabilities	$	(197,066	)	$	(189,145	)

Summary of income tax contingencies

A reconciliation of our changes in uncertain tax positions is as follows (in thousands):

	Years Ended December 31,
	2016			2015		2014
Uncertain tax benefits at the beginning of the year	$	12,695		$	—	$	—
Additions based on tax positions related to the current year	300			12,695		—
Additions for tax positions from prior years	379			—		—
Subtractions for tax positions from prior years	(44		)	—		—
Uncertain tax benefits at the end of the year	$	13,330		$	12,695	$	—