Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Captions

v3.20.1
Composition of Certain Financial Statement Captions
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
(In thousands)
March 31,
2020
 
December 31,
2019
Accounts receivable, net:
 
 
 
Accounts receivable
$
134,223

 
$
136,551

Less: allowance for credit losses
(1,747
)
 
(1,934
)
 
$
132,476

 
$
134,617

Inventories, net:
 
 
 
Consumable supplies
$
28,010

 
$
23,005

Finished products
23,729

 
25,142

Work in-process
4,260

 
3,238

Raw materials
4,591

 
4,586

Less: inventory reserve
(1,893
)
 
(2,537
)
 
$
58,697

 
$
53,434

Other current assets and prepaid expenses:
 
 
 
Taxes recoverable
$
13,577

 
$
19,808

Prepaid expenses
12,602

 
8,147

Prepaid insurance
6,143

 
3,486

Other receivables
646

 
3,262

Other
15,786

 
15,839

 
$
48,754

 
$
50,542

Intangible assets, net:
 
 
 
Customer relationships
$
444,328

 
$
445,408

Technologies
296,169

 
296,246

Trade names
49,760

 
49,786

Covenants not to compete
16,315

 
16,318

Licenses
5,766

 
5,766

Product registrations
6,876

 
7,578

Other
6,007

 
6,094

Less: accumulated amortization
(311,710
)
 
(298,234
)
 
$
513,511

 
$
528,962

Accrued expenses:
 
 
 
Contract liabilities
$
10,455

 
$
19,196

Employee benefits
35,325

 
33,671

Commitments and Contingencies
37,647

 
38,635

Clinical trials
7,540

 
8,122

Contingent consideration
2,375

 
2,375

Finance leases short-term
2,598

 
2,743

Professional fees
903

 
1,333

Other
68,096

 
58,850

 
$
164,939

 
$
164,925

 
 
 
 

(In thousands)
March 31,
2020
 
December 31,
2019
Other long-term liabilities:
 
 
 
Line of credit
$
39,311

 
$
44,749

Contingent consideration
6,448

 
7,308

Mortgages and other debts payable
3,538

 
3,906

Finance leases long-term
3,489

 
4,046

Contract liabilities
1,861

 
2,571

Other
23,115

 
25,224

 
$
77,762

 
$
87,804


Our intangible assets and goodwill relate principally to our completed acquisitions of OPKO Renal, OPKO Biologics, 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 - 7-17 years, customer relationships - 7-20 years, product registrations - 7-10 years, covenants not to compete - 5 years, trade names - 5-10 years, other 9-13 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 three months ended March 31, 2020 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 by reporting unit during the three months ended March 31, 2020.
 
2020
(In thousands)
Balance at January 1
 
Foreign exchange and other
 
Balance at March 31st
Pharmaceuticals
 
 
 
 
 
Rayaldee
$
85,605

 
$
(1,602
)
 
$
84,003

OPKO Chile
4,348

 
(614
)
 
3,734

OPKO Biologics
139,784

 

 
139,784

OPKO Health Europe
7,394

 
(142
)
 
7,252

 
 
 
 
 
 
Diagnostics
 
 
 
 
 
BioReference
434,809

 

 
434,809

 
$
671,940

 
$
(2,358
)
 
$
669,582