Balance Sheet Components

3 Months Ended

Mar. 31, 2020

Balance Sheet Related Disclosures [Abstract]

Inventories

Inventories consisted of the following (in thousands):



	March 31, 2020		December 31, 2019
Raw materials	$	7,364	$	9,504
Work in process	64,678		49,307
Finished goods	1,973		1,386
Total inventories	$	74,015	$	60,197

Balance Sheet Classification
Inventories	$	3,576	$	4,101
Inventories, noncurrent portion	70,439		56,096
Total inventories	$	74,015	$	60,197

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. As of March 31, 2020 and December 31, 2019, long-term inventories of $70.4 million and $56.1 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 March 31, 2020 and December 31, 2019, 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 March 31, 2020 and December 31, 2019, long-term prepaid manufacturing of $0.9 million and $4.7 million, respectively, are classified as prepaid and other long-term assets.

We recorded an excess and obsolescence inventory charge of $2.1 million and $3.9 million to cost of sales during the three months ended March 31, 2020 and 2019, respectively. In developing our inventory reserve estimate, we consider forecasted demand, current inventory levels and our firm purchase commitments. If it is determined that inventory utilization will further diminish based on estimates of demand compared to product expiration, additional inventory write-downs may be required.

Accrued and Other Liabilities

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



	March 31, 2020		December 31, 2019
Manufacturing related	$	4,055	$	11,485
Compensation and employee benefits	12,495		16,099
Product revenue reserves	9,420		7,680
Current portion of lease liability	5,133		4,715
Accruals for sponsorship	2,600		4,433
Others	6,217		5,361
Total accrued and other liabilities	$	39,920	$	49,773