Nature of Business and Accounting Policies Nature of Business and Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The cumulative effect of applying ASC 606 to the Company’s contracts with customers that were not completed as of January 1, 2018 was as follows:

	Balance as of						Balance as of
	December 31, 2017			Adjustments			January 1, 2018
Assets	(in thousands)
Accounts receivable, net	$	281,343		$	29,881		$	311,224
Inventories	111,830			(90		)	111,740
Prepaid expenses and other current assets	167,124			(17,166		)	149,958
Total assets	$	3,546,014		$	12,625		$	3,558,639
Liabilities and Shareholders’ Equity
Accrued expenses	$	443,961		$	8,586		$	452,547
Early access sales accrual	232,401			(7,273		)	225,128
Other liabilities, current portion	34,373			2,083			36,456
Accumulated other comprehensive income (loss)	(11,572		)	949			(10,623		)
Accumulated deficit	(5,119,723		)	8,280			(5,111,443		)
Total liabilities and shareholders’ equity	$	3,546,014		$	12,625		$	3,558,639

The impact of adoption on the Company’s consolidated balance sheet as of December 31, 2018 was as follows:

	As of December 31, 2018
	As Reported under ASC 606			Balances without Adoption of ASC 606			Effect of Change Higher/(Lower)
Assets	(in thousands)
Accounts receivable, net	$	409,688		$	376,949		$	32,739
Inventories	124,360			124,506			(146		)
Prepaid expenses and other current assets	140,819			167,522			(26,703		)
Total assets	$	6,245,898		$	6,240,008		$	5,890
Liabilities and Shareholders’ Equity
Accrued expenses	$	604,495		$	618,873		$	(14,378	)
Early access sales accrual	354,404			380,609			(26,205		)
Other liabilities, current portion	40,589			14,355			26,234
Accumulated other comprehensive income (loss)	659			927			(268		)
Accumulated deficit	(2,989,478		)	(3,009,985		)	20,507
Total liabilities and shareholders’ equity	$	6,245,898		$	6,240,008		$	5,890

The impact of adoption on the Company’s consolidated statement of operations for the year ended December 31, 2018 was as follows:

	Year Ended December 31, 2018
	As Reported under ASC 606		Balances without Adoption of ASC 606		Effect of Change Higher/(Lower)
	(in thousands)
Product revenues, net	$	3,038,325	$	3,019,484	$	18,841
Cost of sales	409,539		402,925		6,614
Income from operations	635,150		622,923		12,227
Net income attributable to Vertex	$	2,096,896	$	2,084,669	$	12,227
Amounts per share attributable to Vertex common shareholders:
Net income:
Basic	$	8.24	$	8.20	$	0.04
Diluted	$	8.09	$	8.04	$	0.05

Schedule of Cash and Cash Equivalents

The cash, cash equivalents and restricted cash balances for the years ended December 31, 2018 through 2015, which are presented in the Company’s consolidated statements of cash flows subsequent to the adoption of ASU 2016-18, consisted of the following:

	As of December 31,
	2018		2017		2016		2015
	(in thousands)
Cash and cash equivalents	$	2,650,134	$	1,665,412	$	1,183,945	$	714,768
Prepaid expenses and other current assets	4,910		2,114		47,762		78,910
Other assets	3,209		—		—		22,083
Cash, cash equivalents and restricted cash per statement of cash flows	$	2,658,253	$	1,667,526	$	1,231,707	$	815,761