Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Captions

v3.19.2
Composition of Certain Financial Statement Captions
6 Months Ended
Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
(In thousands)
June 30,
2019
 
December 31,
2018
Accounts receivable, net:
 
 
 
Accounts receivable
$
150,414

 
$
145,665

Less: allowance for doubtful accounts
(2,127
)
 
(1,758
)
 
$
148,287

 
$
143,907

Inventories, net:
 
 
 
Consumable supplies
$
22,008

 
$
23,264

Finished products
21,481

 
15,259

Work in-process
3,096

 
2,473

Raw materials
4,741

 
4,259

Less: inventory reserve
(3,033
)
 
(2,956
)
 
$
48,293

 
$
42,299

Other current assets and prepaid expenses:
 
 
 
Taxes recoverable
18,176

 
15,708

Other receivables
661

 
2,368

Prepaid supplies
10,584

 
9,693

Prepaid insurance
3,878

 
3,436

Other
3,234

 
3,847

 
$
36,533

 
$
35,052

Intangible assets, net:
 
 
 
Customer relationships
$
446,144

 
$
446,296

Technologies
340,702

 
340,729

Trade names
50,420

 
50,404

Licenses
5,766

 
5,766

Covenants not to compete
16,321

 
16,322

Product registrations
8,016

 
7,861

Other
5,586

 
5,613

Less: accumulated amortization
(291,649
)
 
(258,539
)
 
$
581,306

 
$
614,452

Accrued expenses:
 
 
 
Contract liabilities
$
50,388

 
$
63,503

Employee benefits
39,453

 
45,621

Clinical trials
9,936

 
10,401

Contingent consideration
5,387

 
2,375

Finance leases short-term
3,031

 
3,280

Milestone payment
4,968

 
4,871

Professional fees
3,317

 
7,935

Other
81,902

 
65,527

 
$
198,382

 
$
203,513

 
 
 
 

(In thousands)
June 30,
2019
 
December 31,
2018
Other long-term liabilities:
 
 
 
Contract liabilities
$
3,665

 
$
27,566

Line of credit
65,112

 
105,198

Contingent consideration
20,181

 
22,162

Mortgages and other debts payable
4,500

 
4,654

Finance leases long-term
4,650

 
5,620

Other
29,643

 
33,768

 
$
127,751

 
$
198,968


Our intangible assets and goodwill relate principally to our prior acquisitions of OPKO Renal, OPKO Biologics, EirGen Pharma Limited (“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 - 5-17 years, customer relationships - 7-20 years, product registrations - 7-10 years, covenants not to compete - 5 years, trade names - 5-10 years, other 9-10 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, 2019 were 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, 2019.
 
2019
(In thousands)
Balance at January 1
 
Foreign exchange and other
 
Balance at June 30th
Pharmaceuticals
 
 
 
 
 
CURNA
$
4,827

 
$

 
$
4,827

EirGen
85,245

 
(551
)
 
84,694

FineTech

 

 

OPKO Chile
4,614

 
112

 
4,726

OPKO Biologics
139,784

 

 
139,784

OPKO Health Europe
7,545

 
(49
)
 
7,496

OPKO Renal
2,069

 

 
2,069

Transition Therapeutics
3,323

 
137

 
3,460

 
 
 
 
 
 
Diagnostics
 
 
 
 
 
BioReference
401,821

 

 
401,821

OPKO Diagnostics
17,977

 

 
17,977

OPKO Lab
32,988

 

 
32,988

 
$
700,193

 
$
(351
)
 
$
699,842