| Schedule of New Accounting Pronouncements and Changes in Accounting Principles |
The cumulative effect of applying ASC 842 on the Company’s consolidated balance sheet as of January 1, 2019 was as follows: | | | | | | | | | | | | | | Balance as of | | | | Balance as of | | December 31, 2018 ^ | | Adjustments | | January 1, 2019 | Assets | (in thousands) | Prepaid expenses and other current assets | $ | 140,819 |
| | $ | (2,930 | ) | | $ | 137,889 |
| Property and equipment, net | 812,005 |
| | (53,920 | ) | | 758,085 |
| Deferred tax assets | 1,499,672 |
| | 11,236 |
| | 1,510,908 |
| Other assets | — |
| | 61,674 |
| | 61,674 |
| Total assets | $ | 6,245,898 |
| | $ | 16,060 |
| | $ | 6,261,958 |
| Liabilities and Shareholders’ Equity | | | | | | Capital lease obligations, current portion | $ | 9,817 |
| | $ | (9,817 | ) | | $ | — |
| Other current liabilities | 40,589 |
| | 34,304 |
| | 74,893 |
| Capital lease obligations, excluding current portion | 19,658 |
| | (19,658 | ) | | — |
| Construction financing lease obligation, excluding current portion | 561,892 |
| | (561,892 | ) | | — |
| Long-term finance lease liabilities | — |
| | 569,487 |
| | 569,487 |
| Other long-term liabilities | 26,280 |
| | 43,946 |
| | 70,226 |
| Accumulated deficit | (2,989,478 | ) | | (40,310 | ) | | (3,029,788 | ) | Total liabilities and shareholders’ equity | $ | 6,245,898 |
| | $ | 16,060 |
| | $ | 6,261,958 |
| ^ As reported in the Company’s 2018 Annual Report on Form 10-K. |
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 |
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| Schedule of Cash and Cash Equivalents |
The cash, cash equivalents and restricted cash balances for the years ended December 31, 2019 through 2016, 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, | | 2019 | | 2018 | | 2017 | | 2016 | | (in thousands) | Cash and cash equivalents | $ | 3,109,322 |
| | $ | 2,650,134 |
| | $ | 1,665,412 |
| | $ | 1,183,945 |
| Prepaid expenses and other current assets | 8,004 |
| | 4,910 |
| | 2,114 |
| | 47,762 |
| Other assets | 3,355 |
| | 3,209 |
| | — |
| | — |
| Cash, cash equivalents and restricted cash per statement of cash flows | $ | 3,120,681 |
| | $ | 2,658,253 |
| | $ | 1,667,526 |
| | $ | 1,231,707 |
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