Rigel Pharmaceuticals, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES

Schedule of components of the entity's deferred tax assets

Significant components of our deferred tax assets are as follows (in thousands):


		December 31,
		2017			2016
Deferred tax assets
Net operating loss carryforwards		$	212,153		$	297,445
Orphan drug and research and development credits			51,744			44,348
Deferred compensation			12,261			21,618
Capitalized research and development expenses			4,690			1,877
Other, net			815			3,069
Total deferred tax assets			281,663			368,357
Valuation allowance			(281,663)			(368,357)
Net deferred tax assets		$	—		$	—

Schedule of reconciliation of the statutory federal income tax rate to the effective tax rate


		Year Ended December 31,
		2017		2016		2015
Federal statutory tax rate		(34.0)	%	(34.0)	%	(34.0)	%
Federal statutory rate reduction		160.2	%	—		—
Valuation allowance		(126.5)	%	35.0	%	31.3	%
Stock compensation		5.7	%	5.0	%	8.3	%
Orphan drug and research and development credits		(3.6)	%	(7.3)	%	(5.6)	%
Other, net		(1.8)	%	1.3	%	—	%
Effective tax rate		0.0	%	0.0	%	0.0	%

Schedule of activity related to the entity's gross unrecognized tax benefits

The following table summarizes the activity related to our gross unrecognized tax benefits (in thousands):


		Year Ended December 31,
		2017			2016
Balance at the beginning of the year		$	6,903		$	17,278
Increase related to prior year tax positions			—			(11,332)
Increase related to current year tax positions			527			957
Balance at the end of the year		$	7,430		$	6,903