| COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS |
COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
|
|
|
|
|
|
|
|
|
(In thousands) |
June 30,
2014 |
|
December 31,
2013 |
Accounts receivable, net |
|
|
|
Accounts receivable |
$ |
24,660 |
|
|
$ |
21,652 |
|
Less: allowance for doubtful accounts |
(1,547 |
) |
|
(1,885 |
) |
|
$ |
23,113 |
|
|
$ |
19,767 |
|
Inventories, net |
|
|
|
Finished products |
$ |
12,455 |
|
|
$ |
13,374 |
|
Work in-process |
1,510 |
|
|
1,350 |
|
Raw materials |
4,948 |
|
|
4,132 |
|
Less: inventory reserve |
(579 |
) |
|
(777 |
) |
|
$ |
18,334 |
|
|
$ |
18,079 |
|
Prepaid expenses and other current assets |
|
|
|
Prepaid supplies |
$ |
1,910 |
|
|
$ |
945 |
|
Prepaid insurance |
1,113 |
|
|
892 |
|
Pharmsynthez notes receivable |
— |
|
|
6,151 |
|
Other receivables |
619 |
|
|
1,985 |
|
Taxes recoverable |
1,298 |
|
|
3,458 |
|
Other |
2,613 |
|
|
5,653 |
|
|
$ |
7,553 |
|
|
$ |
19,084 |
|
Intangible assets, net: |
|
|
|
Technologies |
$ |
53,012 |
|
|
$ |
51,660 |
|
Customer relationships |
22,511 |
|
|
22,725 |
|
Product registrations |
9,687 |
|
|
9,692 |
|
Tradenames |
3,615 |
|
|
3,669 |
|
Covenants not to compete |
8,669 |
|
|
8,671 |
|
Other |
1,190 |
|
|
2,519 |
|
Less: accumulated amortization |
(29,625 |
) |
|
(24,403 |
) |
|
$ |
69,059 |
|
|
$ |
74,533 |
|
Accrued expenses: |
|
|
|
Taxes payable |
$ |
406 |
|
|
$ |
702 |
|
Deferred revenue |
6,393 |
|
|
7,639 |
|
Clinical trials |
2,616 |
|
|
3,342 |
|
Professional fees |
1,320 |
|
|
402 |
|
Employee benefits |
5,405 |
|
|
4,399 |
|
Deferred acquisition payments, net of discount |
— |
|
|
5,465 |
|
Contingent consideration |
24,618 |
|
|
28,047 |
|
Other |
14,206 |
|
|
15,878 |
|
|
$ |
54,964 |
|
|
$ |
65,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
June 30,
2014 |
|
December 31,
2013 |
Other long-term liabilities: |
|
|
|
Contingent consideration – OPKO Renal |
$ |
37,141 |
|
|
$ |
34,401 |
|
Contingent consideration – OPKO Spain |
299 |
|
|
504 |
|
Contingent consideration – OPKO Diagnostics |
10,642 |
|
|
8,340 |
|
Contingent consideration – CURNA |
214 |
|
|
316 |
|
Mortgages and other debts payable |
2,948 |
|
|
3,270 |
|
Deferred tax liabilities |
165,226 |
|
|
166,435 |
|
Other, including deferred revenue |
2,020 |
|
|
1,509 |
|
|
$ |
218,490 |
|
|
$ |
214,775 |
|
All of the intangible assets and goodwill acquired relate to our acquisitions of OPKO Chile, including the intangible assets and goodwill related to the ALS acquisition, Exakta-OPKO, CURNA, OPKO Diagnostics, FineTech, OPKO Spain, OPKO Lab, OPKO Renal and OPKO Biologics. The pharmaceutical, nutraceutical and veterinary products from ALS and OPKO Spain do not require ongoing product renewals. 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 the U.S., Chile, Canada, Mexico, Spain, or Israel.
At June 30, 2014, the changes in value of the intangible assets and goodwill are primarily due to foreign currency fluctuations between the Chilean and Mexican pesos, 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, 2014.
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|
2014 |
(In thousands) |
Balance at January 1 |
|
Acquisitions |
|
Foreign exchange, other |
|
Balance at June 30 |
Pharmaceuticals |
|
|
|
|
|
|
|
CURNA |
$ |
4,827 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,827 |
|
Exakta-OPKO |
113 |
|
|
— |
|
|
— |
|
|
113 |
|
OPKO Chile |
6,102 |
|
|
— |
|
|
(310 |
) |
|
5,792 |
|
OPKO Spain |
9,075 |
|
|
— |
|
|
(79 |
) |
|
8,996 |
|
FineTech |
11,698 |
|
|
— |
|
|
— |
|
|
11,698 |
|
SciVac |
1,740 |
|
|
— |
|
|
17 |
|
|
1,757 |
|
OPKO Renal |
2,069 |
|
|
— |
|
|
— |
|
|
2,069 |
|
OPKO Biologics |
139,784 |
|
|
— |
|
|
— |
|
|
139,784 |
|
Diagnostics |
|
|
|
|
|
|
|
Claros |
17,977 |
|
|
— |
|
|
— |
|
|
17,977 |
|
OPKO Lab |
32,988 |
|
|
— |
|
|
— |
|
|
32,988 |
|
|
$ |
226,373 |
|
|
$ |
— |
|
|
$ |
(372 |
) |
|
$ |
226,001 |
|
|