Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Captions

v3.19.3
Composition of Certain Financial Statement Captions
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
(In thousands)
September 30,
2019
 
December 31,
2018
Accounts receivable, net:
 
 
 
Accounts receivable
$
142,605

 
$
145,665

Less: allowance for doubtful accounts
(1,840
)
 
(1,758
)
 
$
140,765

 
$
143,907

Inventories, net:
 
 
 
Consumable supplies
$
23,022

 
$
23,264

Finished products
22,137

 
15,259

Work in-process
3,239

 
2,473

Raw materials
4,264

 
4,259

Less: inventory reserve
(2,553
)
 
(2,956
)
 
$
50,109

 
$
42,299

Other current assets and prepaid expenses:
 
 
 
Taxes recoverable
19,705

 
15,708

Other receivables
194

 
2,368

Prepaid supplies
8,915

 
9,693

Prepaid insurance
5,160

 
3,436

Other
3,327

 
3,847

 
$
37,301

 
$
35,052

Intangible assets, net:
 
 
 
Customer relationships
$
444,524

 
$
446,296

Technologies
340,539

 
340,729

Trade names
49,779

 
50,404

Licenses
5,766

 
5,766

Covenants not to compete
16,314

 
16,322

Product registrations
7,554

 
7,861

Other
5,974

 
5,613

Less: accumulated amortization
(306,140
)
 
(258,539
)
 
$
564,310

 
$
614,452

Accrued expenses:
 
 
 
Contract liabilities
$
30,951

 
$
63,503

Employee benefits
34,138

 
45,621

Clinical trials
9,975

 
10,401

Contingent consideration
2,375

 
2,375

Finance leases short-term
2,983

 
3,280

Milestone payment
5,000

 
4,871

Professional fees
2,877

 
7,935

Other
84,435

 
65,527

 
$
172,734

 
$
203,513

 
 
 
 

(In thousands)
September 30,
2019
 
December 31,
2018
Other long-term liabilities:
 
 
 
Contract liabilities
$
3,257

 
$
27,566

Line of credit
50,644

 
105,198

Contingent consideration
22,084

 
22,162

Mortgages and other debts payable
4,091

 
4,654

Finance leases long-term
4,325

 
5,620

Other
27,558

 
33,768

 
$
111,959

 
$
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 nine months ended September 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 nine months ended September 30, 2019.
 
2019
(In thousands)
Balance at January 1
 
Foreign exchange and other
 
Balance at September 30th
Pharmaceuticals
 
 
 
 
 
CURNA
$
4,827

 
$

 
$
4,827

EirGen
85,245

 
(3,933
)
 
81,312

FineTech

 

 

OPKO Chile
4,614

 
(212
)
 
4,402

OPKO Biologics
139,784

 

 
139,784

OPKO Health Europe
7,546

 
(348
)
 
7,198

OPKO Renal
2,069

 

 
2,069

Transition Therapeutics
3,322

 
98

 
3,420

 
 
 
 
 
 
Diagnostics
 
 
 
 
 
BioReference
401,821

 

 
401,821

OPKO Diagnostics
17,977

 

 
17,977

OPKO Lab
32,988

 

 
32,988

 
$
700,193

 
$
(4,395
)
 
$
695,798