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, 2012

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,

		2012			2011
Deferred tax assets
Net operating loss carryforwards		$	208,772		$	163,747
Research and development credits			23,118			19,997
Capitalized research and development expenses			19,813			19,014
Deferred compensation			27,420			24,607
Other, net			4,145			4,168

Total deferred tax assets			283,268			231,533
Valuation allowance			(283,268	)		(231,533	)

Net deferred tax assets		$	—		$	—

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

		Year Ended December 31,

		2012			2011			2010
Federal statutory tax rate			(34.0	)%		(34.0	)%		34.0	%
Valuation allowance			47.5	%		33.6	%		(33.6	)%
True up of prior year net operating loss			(11.4	)%		0.0	%		0.0	%
Other, net			(2.1	)%		0.4	%		(0.4	)%

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,

		2012			2011
Balance at the beginning of the year		$	1,500		$	1,500
Increase related to prior year tax positions			2,600			—
Increase related to current year tax positions			200			—

Balance at the end of the year		$	4,300		$	1,500