Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Captions

v3.21.2
Composition of Certain Financial Statement Captions
6 Months Ended
Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
(In thousands) June 30,
2021
December 31,
2020
Accounts receivable, net:
Accounts receivable $ 268,327  $ 288,369 
Less: allowance for credit losses (2,471) (2,055)
$ 265,856  $ 286,314 
Inventories, net:
Consumable supplies $ 90,838  $ 86,779 
Finished products 38,870  36,831 
Work in-process 3,449  5,268 
Raw materials 6,409  5,784 
Less: inventory reserve (4,844) (2,321)
$ 134,722  $ 132,341 
Other current assets and prepaid expenses:
Taxes recoverable $ 9,291  $ 13,440 
Prepaid expenses 14,593  7,259 
Prepaid insurance 7,374  3,803 
Other receivables 492  2,502 
Other 15,877  5,309 
$ 47,627  $ 32,313 
Intangible assets, net:
Customer relationships $ 447,484  $ 448,751 
Technologies 290,582  296,623 
Trade names 49,806  49,820 
Covenants not to compete 16,328  16,334 
Licenses 5,766  5,766 
Product registrations 7,803  8,025 
Other 6,351  6,513 
Less: accumulated amortization (378,605) (356,830)
$ 445,515  $ 475,002 
Accrued expenses:
Inventory received but not invoiced $ 33,478  $ 72,160 
Commitments and contingencies 23,161  15,454 
Employee benefits 40,899  43,300 
Contract liabilities 8,400  15,783 
Clinical trials 6,116  7,112 
Contingent consideration 487  1,188 
Finance leases short-term 2,084  2,453 
Professional fees 3,347  4,985 
Other 69,200  78,434 
$ 187,172  $ 240,869 
(In thousands) June 30,
2021
December 31,
2020
Other long-term liabilities:
Contingent consideration $ 2,987  $ 4,507 
Mortgages and other debts payable 3,970  3,837 
Finance leases long-term 2,559  2,805 
Contract liabilities 552  595 
Other 14,798  25,328 
$ 24,866  $ 37,072 

Our intangible assets and goodwill relate principally to our completed acquisitions of OPKO Renal, OPKO Biologics, 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 six months ended June 30, 2021 were primarily due to foreign currency fluctuations between the Chilean Peso, and the Euro against the U.S. dollar.
The following table summarizes the changes in Goodwill by reporting unit during the six months ended June 30, 2021.
2021
(In thousands) Gross goodwill at January 1 Cumulative impairment at January 1 Goodwill impairment Foreign exchange and other Balance at June 30
Pharmaceuticals
CURNA $ 4,827  $ (4,827) $ —  $ —  $ — 
Rayaldee 93,418  —  —  (2,875) 90,543 
FineTech 11,698  (11,698) —  —  — 
OPKO Biologics 139,784  —  —  —  139,784 
OPKO Chile 4,505  —  —  (113) 4,392 
OPKO Health Europe 8,086  —  —  (254) 7,832 
OPKO Mexico 100  (100) —  —  — 
Transition Therapeutics 3,421  (3,421) —  —  — 
Diagnostics
BioReference 434,809  —  —  —  434,809 
OPKO Diagnostics 17,977  (17,977) —  —  — 
$ 718,625  $ (38,023) $ —  $ (3,242) $ 677,360