Item 6. Selected Financial Data

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Item 6. Selected Financial Data

Selected Consolidated Financial Data

(in thousands, except per share data)

The data set forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Item 7 and the Consolidated Financial Statements and related Notes included in Item 8 of this Report.


	Year Ended December 31,
	2019		2018		2017		2016		2015
Consolidated Statements of Operations Data:
Revenues:
Product revenues, net(1)	$	1,774,922	$	1,466,900	$	1,200,312	$	882,404	$	601,015
Product royalty revenues(2)		306,337		234,780		160,791		110,711		74,821
Milestone and contract revenues(3)		77,500		180,000		175,000		112,512		77,857
Other revenues		—		203		113		92		58
Total revenues		2,158,759		1,881,883		1,536,216		1,105,719		753,751
Costs and expenses:
Cost of product revenues (including definite-lived intangible amortization)		114,249		94,123		79,479		58,187		26,972
Research and development(4)		1,154,111		1,197,957		1,326,134		581,861		479,514
Selling, general and administrative(4)		468,711		434,407		366,286		303,251		196,614
Change in fair value of acquisition-related contingent consideration		19,682		26,173		7,704		17,422		—
Total costs and expenses		1,756,753		1,752,660		1,779,603		960,721		703,100
Income (loss) from operations		402,006		129,223		(243,387)		144,998		50,651
Other income (expense), net(4)		52,182		31,760		17,153		4,412		7,089
Interest expense		(1,855)		(1,543)		(6,900)		(38,745)		(45,603)
Unrealized gain (loss) on long term investment		34,458		(44,093)		(24,275)		(3,261)		(4,581)
Expense related to senior note conversions		—		—		(54,881)		—		—
Income (loss) before provision for income taxes		486,791		115,347		(312,290)		107,404		7,556
Provision for income taxes		39,885		5,854		852		3,182		1,025
Net income (loss)	$	446,906	$	109,493	$	(313,142)	$	104,222	$	6,531

Net income (loss) per share:
Basic	$	2.08	$	0.52	$	(1.53)	$	0.55	$	0.04
Diluted	$	2.05	$	0.51	$	(1.53)	$	0.54	$	0.03

Shares used in computing net income (loss) per share:
Basic		214,913		212,383		204,580		187,873		179,601
Diluted		217,657		215,635		204,580		194,125		187,302

(1)	2019, 2018, 2017 and 2016 product revenues, net, relate to our product sales of JAKAFI and product sales of ICLUSIG from the date of acquisition on June 1, 2016. 2015 product revenues, net, relate to our product sales of JAKAFI.

(2)	2019, 2018 and 2017 product royalty revenues relate to Novartis net sales of JAKAVI outside of the United States and Lilly net sales of OLUMIANT outside of the United States. 2016 and 2015 product royalty revenues relate to Novartis net sales of JAKAVI outside the United States.

(3)	2019 milestone and contract revenues relate to our collaborative research and license agreements with Innovent and Zai Lab. 2018, 2017, 2016 and 2015 milestone and contract revenues relate to our collaborative research and license agreements with Novartis and Lilly.

(4)	Upon the retrospective adoption of ASU No. 2017-07 on January 1, 2018, the presentation of other components of net periodic benefit cost were reclassed out of operating income and into other income (expense), net for the periods presented, as applicable.


	December 31,
	2019		2018		2017		2016		2015
Consolidated Balance Sheets Data:
Cash, cash equivalents, and marketable securities	$	2,117,554	$	1,438,323	$	1,169,645	$	808,546	$	707,783
Working capital		1,968,148		1,406,977		1,129,458		720,677		674,368
Total assets(1)		3,426,750		2,645,762		2,302,582		1,638,597		1,007,440
Convertible senior notes		18,300		17,434		24,001		651,481		619,893
Stockholders’ equity		2,598,406		1,925,967		1,630,629		419,467		171,155

(1)	On January 1, 2019, we adopted ASU No. 2016-02 which required us to recognize lease right-of-use assets and corresponding lease liabilities on the consolidated balance sheet. No prior periods were restated as further discussed in Note 1 of Notes to the Consolidated Financial Statements.

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