Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2016

Discontinued Operations [Abstract]

Summary of assets and liabilities presented as discontinued operations

The following table represents the carrying value of Aptevo's assets and liabilities distributed as part of the Separation on August 1, 2016:

(in thousands)	August 1, 2016
Assets:
Cash and cash equivalents	$	45,000
Accounts receivable, net		4,465
Inventories		11,959
Other current assets		4,870
Current assets of discontinued operations		66,294
Property, plant and equipment, net		6,128
In-process research and development		41,800
Intangible assets, net		15,402
Goodwill		13,902
Non-current assets of discontinued operations		77,232
Total assets of discontinued operations	$	143,526
Liabilities:
Accounts payable	$	6,285
Accrued expenses and other current liabilities		64
Accrued compensation		2,456
Contingent consideration		191
Provisions for chargebacks		2,341
Deferred revenue, current portion		433
Current liabilities of discontinued operations		11,770
Deferred revenue, net of current portion		3,232
Other liabilities		91
Non-current liabilities of discontinued operations		3,323
Total liabilities of discontinued operations	$	15,093

The following table represents Aptevo's assets and liabilities presented as discontinued operations and classified as held-for-disposition as of December 31, 2015:

(in thousands)	December 31, 2015
Assets:
Cash and cash equivalents	$	4,492
Accounts receivable, net		6,861
Inventories		16,049
Prepaid expenses and other current assets		1,880
Current assets of discontinued operations		29,282
Property, plant and equipment, net		4,046
In-process research and development		41,800
Intangible assets, net		16,617
Goodwill		13,902
Non-current assets of discontinued operations		76,365
Total assets of discontinued operations	$	105,647
Liabilities:
Accounts payable	$	8,134
Accrued expenses and other current liabilities		22
Accrued compensation		2,684
Contingent consideration, current portion		306
Provisions for chargebacks		2,238
Deferred revenue, current portion		3,964
Current liabilities of discontinued operations		17,348
Deferred revenue, net of current portion		3,163
Other liabilities		71
Non-current liabilities of discontinued operations		3,234
Total liabilities of discontinued operations	$	20,582

Summarized results of discontinued operations included in consolidated statements of income

The following table summarizes results from discontinued operations of Aptevo included in the consolidated statements of operations:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2016			2015			2016			2015
Revenues:
Product sales	$	3,019		$	6,441		$	21,183		$	19,704
Collaborations		68			121			187			5,434
Total revenues		3,087			6,562			21,370			25,138
Operating expense:
Cost of product sales		907			3,270			11,556			11,442
Research and development		2,509			7,689			18,024			27,678
Selling, general and administrative		7,499			5,756			23,792			16,239
Loss from operations		(7,828	)		(10,153	)		(32,002	)		(30,221	)
Other income (expense), net:		(116	)		83			(41	)		(464	)
Loss from discontinued operations before benefit from income taxes		(7,944	)		(10,070	)		(32,043	)		(30,685	)
Benefit from income taxes		(8,896	)		(4,925	)		(16,189	)		(11,283	)
Net loss from discontinued operations	$	952		$	(5,145	)	$	(15,854	)	$	(19,402	)

Summary of disposal groups including discontinued operations cash flow

The following table summarizes the cash flows of Aptevo included in the September 30, 2016 and 2015 consolidated statements of cash flows:

	Nine Months Ended September 30,
(in thousands)	2016			2015
Net cash (used in) provided by operating activities	$	(17,813	)	$	1,414
Net cash used in investing activities		(1,925	)		(970	)
Net cash provided by (used in) financing activities		15,247			(679	)
Net increase (decrease) in cash and cash equivalents	$	(4,491	)	$	(235	)