Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The following table presents the various elements of “income from discontinued operations, net of income taxes” as reported in the accompanying Consolidated Statements of Operations:

	Year ended December 31,
	2019			2018			2017
Revenues:
Product sales, net*	$	22,325		$	103,736		$	115,237
License fees and service revenue	290			4,867			12,189
Total revenues	$	22,615		$	108,603		$	127,426
Operating costs and expenses:
Cost of sales (excluding amortization of intangible assets)	12,007			26,756			42,859
Cost of service revenue	—			—			4,359
Selling, general and administrative	5,801			28,010			19,508
Research and development	2,624			19,799			14,370
Amortization of intangible assets	1,248			28,098			27,647
Restructuring charges - employee severance (Note 13)	3,858			—			—
Total operating costs and expenses	$	25,538		$	102,663		$	108,743
Income (loss) from discontinued operations	$	(2,923	)	$	5,940		$	18,683
Other income (expense):
Change in fair value of contingent consideration	(1,478		)	1,927			(4,957		)
Gain on sale of Commercial Product Portfolio**	34,568			—			—
Total other income (expense)	$	33,090		$	1,927		$	(4,957	)
Income from discontinued operations before income taxes	30,167			7,867			13,726
Provision for income taxes from discontinued operations***	(7,470		)	(1,902		)	(5,163		)
Income from discontinued operations, net of income taxes	$	22,697		$	5,965		$	8,563

* This revenue for the year ended December 31, 2019 includes: (i) sales from our Commercial Product Portfolio in January and February 2019 (prior to the completion of the Commercial Product Portfolio Transaction) and (ii) EVOMELA sales to a specific licensee through October 2019 (see Note 8).

** This pre-tax gain on sale represents the $158.8 million gross proceeds from the Commercial Product Portfolio Transaction less our $121.2 book value of transferred net assets (inclusive of assumed liabilities) to Acrotech on the March 1, 2019 closing date less legal and banker fees aggregating $3.9 million. In the third quarter of 2019, we reduced this gain for a $0.2 million contract cancellation fee associated with our sold commercial operations; this value was deducted from the $4.0 million escrow account (reported as “restricted cash” on the Consolidated Balance Sheets until its release on November 5, 2019). In the fourth quarter of 2019, we increased this gain by $1.1 million to correct for certain inventory that did not contractually transfer to the buyer.

*** This income tax provision represents an allocation of taxes as required under intraperiod allocation guidance (see Note 11). Due to our aggregate net operating loss-carryforwards, no federal or state income tax payments are expected to be made relating to our current year activity, inclusive of our recognized gain on sale of the Commercial Product Portfolio.

Consolidated Balance Sheets

Accounts receivable derived from our product sales on and prior to February 28, 2019 were not transferred to Acrotech as part of the Commercial Product Portfolio Transaction, nor were our GTN liabilities and trade accounts payable assumed by Acrotech that were associated with our commercial activities on and prior to February 28, 2019 (see Note 3(h)). Accordingly, these specific assets and liabilities remain presented within “accounts receivable, net of allowance for doubtful accounts” and “accounts payable and other accrued liabilities” on the accompanying Consolidated Balance Sheets.

The following table presents a summary of our “discontinued operations, assets” and “discontinued operations, liabilities” as of December 31, 2018 within the accompanying Consolidated Balance Sheets (representing those assets and liabilities transferred to Acrotech as part of the Commercial Product Portfolio Transaction):

	December 31, 2018
Inventories	$	3,550
Prepaid expenses and other assets	2,005
Discontinued operations, current assets	5,555
Intangible assets, net of accumulated amortization	111,594
Goodwill	18,061
Other assets	2,970
Discontinued operations, non-current assets	132,625
FOLOTYN development liability	2,311
Discontinued operations, current liabilities	2,311
FOLOTYN development liability, less current portion	9,686
Acquisition-related contingent obligations	4,345
Discontinued operations, non-current liabilities	$	14,031

Consolidated Statement of Cash Flows

The following table presents significant non-cash items for our discontinued operations that are included as adjustments in the accompanying Consolidated Statements of Cash Flows:

	Year ended December 31,
	2019		2018			2017
Depreciation and amortization	$	1,263	$	28,187		$	27,661
Stock-based compensation	$	3,404	$	5,649		$	4,076
Change in fair value of contingent consideration	$	1,478	$	(1,927	)	$	4,957