Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Captions

v3.5.0.2
Composition of Certain Financial Statement Captions
9 Months Ended
Sep. 30, 2016
Compositions of Certain Financial Statement Captions [Abstract]  
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
(In thousands)
September 30,
2016
 
December 31,
2015
Accounts receivable, net
 
 
 
Accounts receivable
$
264,957

 
$
219,043

Less: allowance for doubtful accounts
(41,130
)
 
(25,168
)
 
$
223,827

 
$
193,875

Inventories, net
 
 
 
Consumable supplies
$
22,693

 
$
22,265

Finished products
14,030

 
13,404

Work in-process
1,596

 
1,215

Raw materials
6,014

 
3,848

Less: inventory reserve
(1,147
)
 
(1,051
)
 
$
43,186

 
$
39,681

Other current assets and prepaid expenses
 
 
 
Taxes recoverable
56,566

 
3,076

Other receivables
16,020

 
11,946

Prepaid supplies
11,428

 
8,773

Prepaid insurance
5,520

 
2,206

Other
874

 
903

 
$
90,408

 
$
26,904

Intangible assets, net:
 
 
 
Customer relationships
$
445,743

 
$
449,972

Technologies
339,333

 
151,709

Trade names
50,476

 
50,416

Licenses
23,506

 
23,432

Covenants not to compete
16,361

 
8,612

Product registrations
7,911

 
7,512

Other
4,430

 
5,600

Less: accumulated amortization
(105,870
)
 
(59,101
)
 
$
781,890

 
$
638,152

Accrued expenses:
 
 
 
Deferred revenue
$
72,559

 
$
70,246

Employee benefits
33,608

 
29,751

Clinical trials
10,056

 
2,505

Taxes payable
16,733

 
7,605

Contingent consideration
5,211

 
22,164

Capital leases short-term
3,062

 
5,373

Milestone payment
4,966

 
5,000

Professional fees
2,259

 
1,506

Other
37,622

 
23,749

 
$
186,076

 
$
167,899

 
 
 
 
(In thousands)
September 30,
2016
 
December 31,
2015
Other long-term liabilities:
 
 
 
Deferred revenue
$
107,817

 
$
162,634

Line of credit
38,444

 
72,107

Contingent consideration
38,532

 
32,258

Mortgages and other debts payable
2,243

 
2,523

Capital leases long-term
7,527

 
9,285

Other
9,531

 
13,663

 
$
204,094

 
$
292,470


All of the intangible assets and goodwill acquired relate to our acquisitions of principally OPKO Renal, OPKO Biologics, EirGen and Bio-Reference. 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 we operate in.
We reclassified $187.6 million of IPR&D related to Rayaldee from In-process research and development to Intangible assets, net in our Condensed Consolidated Balance Sheet upon the FDA’s approval of Rayaldee in June 2016. In addition, we made certain purchase price allocation adjustments related to the Bio-Reference acquisition during the nine months ended September 30, 2016. Refer to Note 5. Other changes in value of the intangible assets and goodwill are primarily due to foreign currency fluctuations between the Chilean and Mexican pesos, the Euro and the Shekel against the U.S. dollar.
The following table reflects the changes in Goodwill during the nine months ended September 30, 2016.
 
2016
(In thousands)
Balance at January 1st
 
Purchase accounting adjustments
 
Foreign exchange
 
Balance at September 30th
Pharmaceuticals
 
 
 
 
 
 
 
CURNA
$
4,827

 
$

 
$

 
$
4,827

EirGen
81,139

 

 
2,364

 
83,503

FineTech
11,698

 

 

 
11,698

OPKO Chile
4,517

 

 
343

 
4,860

OPKO Biologics
139,784

 

 

 
139,784

OPKO Health Europe
7,191

 

 
201

 
7,392

OPKO Renal
2,069

 

 

 
2,069

Transition Therapeutics

 
3,453

 
(16
)
 
3,437

 
 
 
 
 
 
 
 
Diagnostics
 
 
 
 
 
 
 
Bio-Reference
441,158

 
(49,167
)
 

 
391,991

OPKO Diagnostics
17,977

 

 

 
17,977

OPKO Lab
32,988

 

 

 
32,988

 
$
743,348

 
$
(45,714
)
 
$
2,892

 
$
700,526