Annual report pursuant to Section 13 and 15(d)

Composition of Certain Financial Statement Captions (Tables)

v3.8.0.1
Composition of Certain Financial Statement Captions (Tables)
12 Months Ended
Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Composition of Certain Financial Statement Captions
 
For the years ended December 31,
(In thousands)
2017
 
2016
Accounts receivable, net
 
 
 
Accounts receivable
$
231,940

 
$
256,552

Less: allowance for doubtful accounts
(66,424
)
 
(36,268
)
 
$
165,516

 
$
220,284

Inventories, net
 
 
 
Consumable supplies
$
21,546

 
$
23,448

Finished products
21,012

 
16,143

Work in-process
5,873

 
3,896

Raw materials
7,467

 
4,686

Less: inventory reserve
(6,565
)
 
(945
)
 
$
49,333

 
$
47,228

Other current assets and prepaid expenses
 
 
 
Other receivables
$
3,398

 
$
13,021

Taxes recoverable
18,138

 
16,187

Prepaid supplies
8,207

 
6,952

Prepaid insurance
3,532

 
3,688

Other
3,838

 
7,508

 
$
37,113

 
$
47,356

Property, plant and equipment, net:
 
 
 
Machinery, medical and other equipment
$
112,961

 
$
100,100

Leasehold improvements
34,121

 
30,122

Furniture and fixtures
11,540

 
11,247

Automobiles and aircraft
11,137

 
13,342

Software
12,469

 
10,990

Building
8,227

 
5,696

Land
2,552

 
2,264

Construction in process
39,397

 
5,848

Less: accumulated depreciation
(85,847
)
 
(56,778
)
 
$
146,557

 
$
122,831

Intangible assets, net:
 
 
 
Customer relationships
$
448,345

 
$
443,560

Technologies
340,921

 
340,397

Trade names
50,553

 
50,442

Covenants not to compete
16,372

 
16,348

Licenses
10,305

 
23,506

Product registrations
10,475

 
7,641

Other
5,799

 
5,289

Less:  accumulated amortization
(198,935
)
 
(123,207
)
 
$
683,835

 
$
763,976

Accrued expenses:
 
 
 
Deferred revenue
$
46,189

 
$
73,434

Employee benefits
50,377

 
43,792

Taxes payable
4,609

 
4,430

Contingent consideration
11,750

 
259

 
For the years ended December 31,
(In thousands)
2017
 
2016
Clinical trials
12,191

 
5,935

Capital leases short-term
3,399

 
3,025

Milestone payment
4,868

 
4,865

Professional fees
2,355

 
4,035

Other
79,364

 
58,180

 
$
215,102

 
$
197,955

 
 
 
 
Other long-term liabilities:
 
 
 
Deferred revenue
$
58,989

 
$
89,016

Line of credit
104,152

 
38,809

Contingent consideration
29,603

 
44,817

Capital leases long-term
7,786

 
7,216

Mortgages and other debts payable
1,567

 
717

Other
17,857

 
21,908

 
$
219,954

 
$
202,483

Summary of Fair Values Assigned to Major Intangible Asset Classes
The following table summarizes the fair values assigned to our major intangible asset classes upon each acquisition:
(In thousands)
Technologies
 
In-process research and development
 
Customer relationships
 
Product registrations
 
Covenants not to compete
 
Trade names
 
Other
 
Total identified intangible assets
 
Goodwill
BioReference
$
100,600

 
$

 
$
389,800

 
$

 
$
7,750

 
$
47,100

 
$

 
$
545,250

 
$
401,821

CURNA

 
10,000

 

 

 

 

 
290

 
10,290

 
4,827

EirGen

 
560

 
34,155

 

 

 

 
3,919

 
38,634

 
83,373

FineTech
2,700

 

 
14,200

 

 
1,500

 
400

 

 
18,800

 
11,623

OPKO Biologics

 
590,200

 

 

 

 

 

 
590,200

 
139,784

OPKO
Chile

 

 
3,945

 
5,829

 

 
1,032

 

 
10,806

 
5,441

OPKO Diagnostics
44,400

 

 

 

 

 

 

 
44,400

 
17,977

OPKO Health Europe
3,017

 
1,459

 
436

 
2,930

 
187

 
349

 

 
8,378

 
8,062

OPKO Lab
1,370

 

 
3,860

 

 
6,900

 
1,830

 
70

 
14,030

 
29,629

OPKO Renal

 
191,530

 

 

 

 

 
210

 
191,740

 
2,411

Transition Therapeutics

 
41,000

 

 

 

 

 


41,000

 
3,453

Weighted average amortization period
8-12 years

 
Indefinite

 
6-20 years

 
9 years

 
5 years

 
4-5 years

 
3-10 years

 
 
 
Indefinite

Summary of Valuation Allowance
The following table reflects the changes in the allowance for doubtful accounts, provision for inventory reserve and tax valuation allowance accounts:
 
(In thousands)
Beginning
balance
 
Charged
to
expense
 
Written-off
 
Charged
to other
 
Ending
balance
2017
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
(36,268
)
 
(107,256
)
 
77,047

 
53

 
$
(66,424
)
Inventory reserve
$
(945
)
 
(5,390
)
 
(230
)
 

 
$
(6,565
)
Tax valuation allowance
$
(55,415
)
 
(82,358
)
 

 
(4,289
)
 
$
(142,062
)
2016
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts
$
(25,168
)
 
(83,463
)
 
68,840

 
3,523

 
$
(36,268
)
Inventory reserve
$
(1,051
)
 
(20
)
 
296

 
(170
)
 
$
(945
)
Tax valuation allowance
$
(42,147
)
 
7,726

 

 
(20,994
)
 
$
(55,415
)
Schedule of Goodwill
The following table summarizes the changes in Goodwill during the years ended December 31, 2017 and 2016.
 
2017
 
2016
(In thousands)
Balance at January 1
 
Purchase Accounting Adj
 
Foreign exchange and other
 
Balance at December 31st
 
Balance at January 1
 
Purchase accounting adjustments
 
Foreign exchange
 
Balance at December 31
Pharmaceuticals
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURNA
$
4,827

 
$

 
$

 
$
4,827

 
$
4,827

 
$

 
$

 
$
4,827

EirGen
78,358

 

 
10,868

 
89,226

 
81,139

 

 
(2,781
)
 
78,358

FineTech
11,698

 

 

 
11,698

 
11,698

 

 

 
11,698

OPKO Biologics
139,784

 

 

 
139,784

 
139,784

 

 

 
139,784

OPKO Chile
4,785

 

 
418

 
5,203

 
4,517

 

 
268

 
4,785

OPKO Health Europe
6,936

 

 
962

 
7,898

 
7,191

 

 
(255
)
 
6,936

OPKO Renal
2,069

 

 

 
2,069

 
2,069

 

 

 
2,069

Transition Therapeutics
3,360

 

 
248

 
3,608

 

 
3,453

 
(93
)
 
3,360

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diagnostics
 
 
 
 
 
 
 
 

 

 

 

BioReference
401,821

 

 

 
401,821

 
441,158

 
(39,337
)
 

 
401,821

OPKO Diagnostics
17,977

 

 

 
17,977

 
17,977

 

 

 
17,977

OPKO Lab
32,988

 

 

 
32,988

 
32,988

 

 

 
32,988

 
$
704,603

 
$

 
$
12,496

 
$
717,099

 
$
743,348

 
$
(35,884
)
 
$
(2,861
)
 
$
704,603