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Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash flows from operating activities:    
Net income (loss) $ (374,339) $ 53,408
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation and amortization expense 21,245 17,225
Stock-based compensation expense 72,625 59,067
Other non-cash based compensation expense 5,857 5,469
Intangible asset impairment charge 412,900 0
Deferred income taxes (130,661) 19,310
Write-down of inventories to net realizable value 5,083 78,000
Other non-cash items, net 755 130
Changes in operating assets and liabilities:    
Accounts receivable, net (18,462) (2,483)
Inventories (6,620) 34,288
Prepaid expenses and other current assets (18,152) (40,053)
Accounts payable (53,374) (15,313)
Accrued expenses and other liabilities 11,316 9,310
Excess tax benefit from share-based payment arrangements 0 1,214
Accrued restructuring expense (1,276) (1,483)
Deferred revenues (6,842) (25,764)
Net cash provided by (used in) operating activities (66,705) 121,321
Cash flows from investing activities:    
Purchases of marketable securities (898,706) (777,604)
Sales and maturities of marketable securities 830,906 502,188
Expenditures for property and equipment (18,408) (21,698)
Decrease (increase) in restricted cash 31,812 0
Decrease (increase) in restricted cash and cash equivalents (Alios) 11,695 (4,146)
Decrease (increase) in other assets (414) 485
Net cash used in investing activities (42,287) (301,745)
Cash flows from financing activities:    
Excess tax benefit from share-based payment arrangements 0 1,214
Issuances of common stock from employee benefit plans 207,872 158,003
Payments to redeem secured notes (due 2015) (158) 0
Payments on capital lease obligations (12,246) 0
Payments on construction financing lease obligation (44,115) 0
Net cash provided by (used in) financing activities 151,353 159,217
Effect of changes in exchange rates on cash (521) (52)
Net increase (decrease) in cash and cash equivalents 41,840 (21,259)
Cash and cash equivalents—beginning of period 489,407 [1] 475,320
Cash and cash equivalents—end of period 531,247 [1]  
Supplemental disclosure of cash flow information:    
Cash paid for interest 6,700 6,700
Conversion of convertible senior subordinated notes (due 2015) for common stock 399,842 0
Interest on converted convertible senior subordinated notes (due 2015) offset to additional paid-in capital 6,700 0
Unamortized debt issuance costs of converted convertible subordinated notes (due 2015) offset to additional paid-in capital 4,230 0
Capitalization of construction in-process related to construction financing lease obligation 130,222 104,341
Assets acquired under capital lease $ 21,576 $ 29,072
[1] Amounts include the assets and liabilities of Vertex’s variable interest entity (“VIE”), Alios BioPharma, Inc. (“Alios”). Vertex’s interests and obligations with respect to the VIE’s assets and liabilities are limited to those accorded to Vertex in its agreement with Alios. See Note C, "Collaborative Arrangements," to these condensed consolidated financial statements for amounts.