SUPPLEMENTAL FINANCIAL STATEMENTS INFORMATION

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL FINANCIAL STATEMENTS INFORMATION

Supplemental Balance Sheet Information

Inventory consisted of the following:


	March 31, 2022		December 31, 2021
Raw materials	$	92,110	$	80,269
Work-in-process	402,319		415,261
Finished goods	291,927		281,139
Total inventory	$	786,356	$	776,669

Inventory as of March 31, 2022, included manufacturing-related costs for the commercial production of valoctocogene roxaparvovec inventory totaling $11.3 million. Valoctocogene roxaparvovec is an investigational gene therapy product candidate for the treatment of severe hemophilia A. The Company must receive marketing approval from the applicable regulators before the valoctocogene roxaparvovec inventory can be sold commercially. Starting in the first quarter of 2022, the Company believed that material uncertainties related to the ultimate regulatory approval of valoctocogene roxaparvovec by the European Medicines Agency had been significantly reduced and the Company expects to realize economic benefit in the future. A number of factors were taken into consideration, including the current status in the drug development process, pivotal clinical trial results for the underlying product candidate, results from meetings and correspondence with the relevant regulatory authorities following the submission of the additional two-year follow-up safety and efficacy data requested by the regulatory agencies in the third quarter of 2020, historical experience, as well as potential impediments to the approval process such as product safety or efficacy, and commercialization and marketplace trends.

See Note 1 – Business Overview and Significant Accounting Policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 for additional information related to the Company’s policies on inventory produced prior to regulatory approval.

Property, Plant and Equipment, Net consisted of the following:


	March 31, 2022		December 31, 2021
Property, plant and equipment, gross	$	1,780,711	$	1,756,035
Accumulated depreciation	(741,167)		(720,574)
Total property, plant and equipment, net	$	1,039,544	$	1,035,461

Depreciation expense, net of amounts capitalized into inventory, for the three months ended March 31, 2022 and March 31, 2021 was $11.7 million and $12.5 million, respectively.

Intangible Assets, Net consisted of the following:


	March 31, 2022		December 31, 2021
Finite-lived intangible assets	$	678,601	$	677,350
Accumulated amortization	(304,350)		(288,698)
Net carrying value	$	374,251	$	388,652

Accounts Payable and Accrued Liabilities consisted of the following:


	March 31, 2022		December 31, 2021
Accounts payable and accrued operating expenses	$	187,810	$	193,003
Accrued compensation expense	127,938		204,446
Accrued rebates payable	56,295		47,987
Accrued royalties payable	16,026		15,215
Foreign currency exchange forward contracts	12,716		6,263
Lease liabilities	10,829		10,464
Value added taxes payable	5,096		1,935
Accrued income taxes	3,347		1,213
Deferred revenue	306		6,956
Other	6,055		4,108
Total accounts payable and accrued liabilities	$	426,418	$	491,590

Supplemental Statement of Comprehensive Income Information

Gain on Sale of Nonfinancial Assets, Net in the first quarter of 2022 consisted of the completed sale of a Rare Pediatric Disease Priority Review Voucher (PRV) the Company received from the FDA in connection with the U.S. approval of Voxzogo. As a result of the PRV sale, the Company recognized a $108.0 million net gain on sale of nonfinancial assets in the Company's Consolidated Statement of Comprehensive Income.