| COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS |
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
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| (In thousands) |
March 31,
2021 |
|
December 31,
2020 |
| Accounts receivable, net: |
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| Accounts receivable |
$ |
322,940 |
|
|
$ |
288,369 |
|
| Less: allowance for credit losses |
(2,478) |
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|
(2,055) |
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|
$ |
320,462 |
|
|
$ |
286,314 |
|
| Inventories, net: |
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|
|
| Consumable supplies |
$ |
114,042 |
|
|
$ |
86,779 |
|
| Finished products |
39,287 |
|
|
36,831 |
|
| Work in-process |
4,706 |
|
|
5,268 |
|
| Raw materials |
5,966 |
|
|
5,784 |
|
| Less: inventory reserve |
(4,897) |
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|
(2,321) |
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|
$ |
159,104 |
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|
$ |
132,341 |
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| Other current assets and prepaid expenses: |
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| Taxes recoverable |
$ |
9,480 |
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|
$ |
13,440 |
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| Prepaid expenses |
13,628 |
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|
7,259 |
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| Prepaid insurance |
1,458 |
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|
3,803 |
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| Other receivables |
351 |
|
|
2,502 |
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| Other |
5,063 |
|
|
5,309 |
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|
$ |
29,980 |
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|
$ |
32,313 |
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| Intangible assets, net: |
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| Customer relationships |
$ |
447,095 |
|
|
$ |
448,751 |
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| Technologies |
288,222 |
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|
296,623 |
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| Trade names |
49,805 |
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|
49,820 |
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|
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| Covenants not to compete |
16,326 |
|
|
16,334 |
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| Licenses |
5,766 |
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|
5,766 |
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| Product registrations |
7,881 |
|
|
8,025 |
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| Other |
6,288 |
|
|
6,513 |
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| Less: accumulated amortization |
(365,074) |
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|
(356,830) |
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|
$ |
456,309 |
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|
$ |
475,002 |
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| Accrued expenses: |
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| Inventory received but not invoiced |
$ |
50,732 |
|
|
$ |
72,160 |
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| Commitments and contingencies |
17,777 |
|
|
15,454 |
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| Employee benefits |
46,428 |
|
|
43,300 |
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| Contract liabilities |
15,031 |
|
|
15,783 |
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| Clinical trials |
6,597 |
|
|
7,112 |
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| Contingent consideration |
— |
|
|
1,188 |
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| Finance leases short-term |
2,287 |
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|
2,453 |
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| Professional fees |
4,790 |
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|
4,985 |
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| Other |
69,477 |
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|
78,434 |
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|
$ |
213,119 |
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|
$ |
240,869 |
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| (In thousands) |
March 31,
2021 |
|
December 31,
2020 |
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| Other long-term liabilities: |
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| Contingent consideration |
$ |
3,564 |
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|
$ |
4,507 |
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| Mortgages and other debts payable |
3,325 |
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|
3,837 |
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| Finance leases long-term |
2,506 |
|
|
2,805 |
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| Contract liabilities |
557 |
|
|
595 |
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| Other |
16,759 |
|
|
25,328 |
|
|
$ |
26,711 |
|
|
$ |
37,072 |
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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 three months ended March 31, 2021 were primarily due to foreign currency fluctuations between the Chilean Peso, and the Euro against the U.S. dollar.
The following table summarizes the changes in Goodwill by reporting unit during the three months ended March 31, 2021.
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2021 |
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| (In thousands) |
Gross goodwill at January 1 |
Cumulative impairment at January 1 |
Goodwill impairment |
Foreign exchange and other |
Balance at March 31 |
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| Pharmaceuticals |
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| CURNA |
$ |
4,827 |
|
$ |
(4,827) |
|
$ |
— |
|
$ |
— |
|
$ |
— |
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| Rayaldee |
93,418 |
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— |
|
— |
|
(3,998) |
|
89,420 |
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| FineTech |
11,698 |
|
(11,698) |
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— |
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— |
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— |
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| OPKO Biologics |
139,784 |
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— |
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— |
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— |
|
139,784 |
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| OPKO Chile |
4,505 |
|
— |
|
— |
|
(88) |
|
4,417 |
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| OPKO Health Europe |
8,086 |
|
— |
|
— |
|
(354) |
|
7,732 |
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| OPKO Mexico |
100 |
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(100) |
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— |
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— |
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— |
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| Transition Therapeutics |
3,421 |
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(3,421) |
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— |
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— |
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— |
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| Diagnostics |
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| BioReference |
434,809 |
|
— |
|
— |
|
— |
|
434,809 |
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| OPKO Diagnostics |
17,977 |
|
(17,977) |
|
— |
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— |
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— |
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|
$ |
718,625 |
|
$ |
(38,023) |
|
$ |
— |
|
$ |
(4,440) |
|
$ |
676,162 |
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