Quarterly report pursuant to Section 13 or 15(d)

Composition of Certain Financial Statement Captions

v3.20.2
Composition of Certain Financial Statement Captions
6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
(In thousands) June 30,
2020
December 31,
2019
Accounts receivable, net:
Accounts receivable $ 215,925    $ 136,551   
Less: allowance for credit losses (1,573)   (1,934)  
$ 214,352    $ 134,617   
Inventories, net:
Consumable supplies $ 41,298    $ 23,005   
Finished products 24,259    25,142   
Work in-process 4,711    3,238   
Raw materials 5,826    4,586   
Less: inventory reserve (3,129)   (2,537)  
$ 72,965    $ 53,434   
Other current assets and prepaid expenses:
Taxes recoverable $ 12,135    $ 19,808   
Prepaid expenses 12,999    8,147   
Prepaid insurance 6,274    3,486   
Other receivables 661    3,262   
Other 19,056    15,839   
$ 51,125    $ 50,542   
Intangible assets, net:
Customer relationships $ 445,144    $ 445,408   
Technologies 296,251    296,246   
Trade names 49,771    49,786   
Covenants not to compete 16,318    16,318   
Licenses 5,766    5,766   
Product registrations 7,109    7,578   
Other 6,100    6,094   
Less: accumulated amortization (327,334)   (298,234)  
$ 499,125    $ 528,962   
Accrued expenses:
Inventory received but not invoiced $ 49,005    $ 13,751   
Commitments and Contingencies 38,668    38,635   
Employee benefits 34,086    33,671   
Contract liabilities 16,570    19,196   
Clinical trials 6,079    8,122   
Contingent consideration 2,375    2,375   
Finance leases short-term 2,435    2,743   
Professional fees 4,009    1,333   
Other 56,884    45,099   
$ 210,111    $ 164,925   
(In thousands) June 30,
2020
December 31,
2019
Other long-term liabilities:
Line of credit $ 51,489    $ 44,749   
Contingent consideration 7,559    7,308   
Mortgages and other debts payable 4,201    3,906   
Finance leases long-term 2,960    4,046   
Contract liabilities 1,170    2,571   
Other 24,274    25,224   
$ 91,653    $ 87,804   

Our intangible assets and goodwill relate principally to our completed 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 - 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 six months ended June 30, 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 six months ended June 30, 2020.
2020
(In thousands) Balance at January 1 Foreign exchange and other Balance at June 30th
Pharmaceuticals
Rayaldee $ 85,605    $ 100    $ 85,705   
OPKO Chile 4,348    (450)   3,898   
OPKO Biologics 139,784    —    139,784   
OPKO Health Europe 7,394      7,403   
Diagnostics
BioReference 434,809    —    434,809   
$ 671,940    $ (341)   $ 671,599