Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Captions

v3.10.0.1
Composition of Certain Financial Statement Captions
6 Months Ended
Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
(In thousands)
June 30,
2018
 
December 31,
2017
Accounts receivable, net:
 
 
 
Accounts receivable
$
154,269

 
$
166,962

Less: allowance for doubtful accounts
(1,492
)
 
(1,446
)
 
$
152,777

 
$
165,516

Inventories, net:
 
 
 
Consumable supplies
$
24,986

 
$
21,546

Finished products
16,783

 
21,012

Work in-process
3,910

 
5,873

Raw materials
5,800

 
7,467

Less: inventory reserve
(4,726
)
 
(6,565
)
 
$
46,753

 
$
49,333

Other current assets and prepaid expenses:
 
 
 
Taxes recoverable
21,319

 
18,138

Other receivables
2,031

 
8,798

Prepaid supplies
10,278

 
8,207

Prepaid insurance
3,259

 
3,532

Other
4,764

 
3,838

 
$
41,651

 
$
42,513

Intangible assets, net:
 
 
 
Customer relationships
$
447,225

 
$
448,345

Technologies
340,815

 
340,921

Trade names
50,494

 
50,553

Licenses
10,246

 
10,305

Covenants not to compete
16,367

 
16,372

Product registrations
9,694

 
10,475

Other
5,696

 
5,799

Less: accumulated amortization
(231,996
)
 
(198,935
)
 
$
648,541

 
$
683,835

Accrued expenses:
 
 
 
Contract liabilities
$
61,846

 
$
61,388

Employee benefits
46,621

 
50,377

Clinical trials
11,598

 
12,191

Taxes payable
3,604

 
4,609

Contingent consideration
2,042

 
11,750

Capital leases short-term
3,166

 
3,399

Milestone payment
4,967

 
4,868

Professional fees
1,727

 
2,355

Other
65,421

 
79,364

 
$
200,992

 
$
230,301

 
 
 
 
(In thousands)
June 30,
2018
 
December 31,
2017
Other long-term liabilities:
 
 
 
Contract liabilities
$
47,720

 
$
78,990

Line of credit
105,539

 
104,152

Contingent consideration
25,712

 
29,603

Mortgages and other debts payable
1,704

 
1,567

Capital leases long-term
6,638

 
7,786

Other
22,131

 
17,857

 
$
209,444

 
$
239,955


All of the intangible assets and goodwill acquired relate to our acquisitions of principally OPKO Renal, OPKO Biologics, EirGen Pharma Limited (“EirGen”) and BioReference. 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.
The changes in value of the intangible assets and goodwill during the six months ended June 30, 2018 are 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 during the six months ended June 30, 2018.
 
2018
(In thousands)
Balance at January 1
 
Foreign exchange and other
 
Balance at June 30th
Pharmaceuticals
 
 
 
 
 
CURNA
$
4,827

 
$

 
$
4,827

EirGen
89,226

 
(2,201
)
 
87,025

FineTech
11,698

 

 
11,698

OPKO Chile
5,203

 
(307
)
 
4,896

OPKO Biologics
139,784

 

 
139,784

OPKO Health Europe
7,898

 
(197
)
 
7,701

OPKO Renal
2,069

 

 
2,069

Transition Therapeutics
3,608

 
(160
)
 
3,448

 
 
 
 
 
 
Diagnostics
 
 
 
 
 
BioReference
401,821

 

 
401,821

OPKO Diagnostics
17,977

 

 
17,977

OPKO Lab
32,988

 

 
32,988

 
$
717,099

 
$
(2,865
)
 
$
714,234