Balance Sheet Components

9 Months Ended

Sep. 30, 2019

Balance Sheet Related Disclosures [Abstract]

Inventories

Inventories consisted of the following (in thousands):



	September 30, 2019		December 31, 2018
Raw materials	$	13,716	$	279
Work in process	21,118		14,395
Finished goods	819		2,844
Total inventories	$	35,653	$	17,518

Balance Sheet Classification
Inventories	$	2,357	$	7,873
Inventories, noncurrent portion	33,296		9,645
Total inventories	$	35,653	$	17,518

We began capitalizing inventory for costs associated with Andexxa Gen 1 and Gen 2 supply upon FDA approval on May 3, 2018 and December 31, 2018, respectively. We began capitalizing inventory for costs associated with Bevyxxa during the fourth quarter of 2017 when it was determined that the inventory had a probable future economic benefit. As of September 30, 2019 and December 31, 2018, long-term inventories of $33.3 million and $9.6 million, respectively, are classified as inventories, noncurrent portion, as these inventories are not expected to be sold within the next twelve months, and the amount is deemed recoverable.

As of September 30, 2019 and December 31, 2018, we have made prepayments to manufacturers for the purchase of inventories. We classify prepayments to manufacturers as short or long-term assets based on whether the related inventories are expected to be utilized in the manufacturing process and/or sold within the next twelve months. As of September 30, 2019 and December 31, 2018, long-term prepaid manufacturing of $9.1 million and $10.9 million, respectively, are classified as prepaid and other long-term assets.

We recorded an excess and obsolescence inventory charge to cost of sales of $4.1 million during the nine months ended September 30, 2019. In developing the estimate for inventory reserve, we used estimates of demand compared to shelf life. If it is determined that inventory utilization will further diminish based on estimates of demand, additional inventory write-downs may be required.

Accrued and Other Liabilities

Accrued and other liabilities consist of the following (in thousands):



	September 30, 2019		December 31, 2018
Manufacturing related	$	6,349	$	5,465
Compensation and employee benefits	13,480		10,794
Current portion of lease liability	3,566		—
Others	9,457		6,051
Total accrued and other liabilities	$	32,852	$	22,310