| COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS |
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
|
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|
|
|
|
|
|
(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.
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|
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 |
|
|