Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Captions

v3.20.2
Composition of Certain Financial Statement Captions
9 Months Ended
Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
(In thousands) September 30,
2020
December 31,
2019
Accounts receivable, net:
Accounts receivable $ 243,540  $ 136,551 
Less: allowance for credit losses (1,996) (1,934)
$ 241,544  $ 134,617 
Inventories, net:
Consumable supplies $ 72,518  $ 23,005 
Finished products 30,268  25,142 
Work in-process 6,425  3,238 
Raw materials 6,343  4,586 
Less: inventory reserve (3,681) (2,537)
$ 111,873  $ 53,434 
Other current assets and prepaid expenses:
Taxes recoverable $ 14,072  $ 19,808 
Prepaid expenses 9,435  8,147 
Prepaid insurance 6,635  3,486 
Other receivables 714  3,262 
Other 7,542  15,839 
$ 38,398  $ 50,542 
Intangible assets, net:
Customer relationships $ 446,794  $ 445,408 
Technologies 296,429  296,246 
Trade names 49,791  49,786 
Covenants not to compete 16,326  16,318 
Licenses 5,766  5,766 
Product registrations 7,430  7,578 
Other 6,296  6,094 
Less: accumulated amortization (342,414) (298,234)
$ 486,418  $ 528,962 
Accrued expenses:
Inventory received but not invoiced $ 84,768  $ 13,751 
Commitments and Contingencies 22,669  38,635 
Employee benefits 37,671  33,671 
Contract liabilities 14,099  19,196 
Clinical trials 5,912  8,122 
Contingent consideration 2,374  2,375 
Finance leases short-term 2,343  2,743 
Professional fees 5,340  1,333 
Other 73,246  45,099 
$ 248,422  $ 164,925 
(In thousands) September 30,
2020
December 31,
2019
Other long-term liabilities:
Line of credit (see Note) $ —  $ 44,749 
Contingent consideration 8,643  7,308 
Mortgages and other debts payable 4,010  3,906 
Finance leases long-term 2,538  4,046 
Contract liabilities 2,951  2,571 
Other 26,889  25,224 
$ 45,031  $ 87,804 

Note: Our line of credit with JPMorgan Chase Bank, N.A. was fully repaid as of September 30, 2020.
Our intangible assets and goodwill relate principally to our completed acquisitions of OPKO Renal, OPKO Biologics, EirGen Pharma Limited (“EirGen”) and BioReference. We amortize intangible assets with definite lives on a straight-line basis over their estimated useful lives. The estimated useful lives by asset class are as follows: technologies - 7-17 years, customer relationships - 7-20 years, product registrations - 7-10 years, covenants not to compete - 5 years, trade names - 5-10 years, other 9-13 years. We do not anticipate capitalizing the cost of product registration renewals, rather we expect to expense these costs, as incurred. Our goodwill is not tax deductible for income tax purposes in any jurisdiction in which we operate.
The changes in value of the intangible assets and goodwill during the nine months ended September 30, 2020 were primarily due to foreign currency fluctuations between the Chilean Peso, the Euro and the Shekel against the U.S. dollar.
The following table summarizes the changes in Goodwill by reporting unit during the nine months ended September 30, 2020.
2020
(In thousands) Balance at January 1 Foreign exchange and other Balance at September 30th
Pharmaceuticals
Rayaldee $ 85,605  $ 3,791  $ 89,396 
OPKO Chile 4,348  (272) 4,076 
OPKO Biologics 139,784  —  139,784 
OPKO Health Europe 7,394  336  7,730 
Diagnostics
BioReference 434,809  —  434,809 
$ 671,940  $ 3,855  $ 675,795