Composition of Certain Financial Statement Captions

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS


(In thousands)	September 30, 2020		December 31, 2019
Accounts receivable, net:
Accounts receivable	$	243,540	$	136,551
Less: allowance for credit losses	(1,996)		(1,934)
	$	241,544	$	134,617
Inventories, net:
Consumable supplies	$	72,518	$	23,005
Finished products	30,268		25,142
Work in-process	6,425		3,238
Raw materials	6,343		4,586
Less: inventory reserve	(3,681)		(2,537)
	$	111,873	$	53,434
Other current assets and prepaid expenses:
Taxes recoverable	$	14,072	$	19,808
Prepaid expenses	9,435		8,147



Prepaid insurance	6,635		3,486
Other receivables	714		3,262
Other	7,542		15,839
	$	38,398	$	50,542
Intangible assets, net:
Customer relationships	$	446,794	$	445,408
Technologies	296,429		296,246
Trade names	49,791		49,786

Covenants not to compete	16,326		16,318
Licenses	5,766		5,766
Product registrations	7,430		7,578
Other	6,296		6,094
Less: accumulated amortization	(342,414)		(298,234)
	$	486,418	$	528,962
Accrued expenses:
Inventory received but not invoiced	$	84,768	$	13,751
Commitments and Contingencies	22,669		38,635
Employee benefits	37,671		33,671
Contract liabilities	14,099		19,196
Clinical trials	5,912		8,122

Contingent consideration	2,374		2,375
Finance leases short-term	2,343		2,743

Professional fees	5,340		1,333


Other	73,246		45,099
	$	248,422	$	164,925


(In thousands)	September 30, 2020		December 31, 2019

Other long-term liabilities:

Line of credit (see Note)	$	—	$	44,749
Contingent consideration	8,643		7,308

Mortgages and other debts payable	4,010		3,906
Finance leases long-term	2,538		4,046
Contract liabilities	2,951		2,571
Other	26,889		25,224
	$	45,031	$	87,804

Note: Our line of credit with JPMorgan Chase Bank, N.A. was fully repaid as of September 30, 2020.

Our intangible assets and goodwill relate principally to our completed acquisitions of OPKO Renal, OPKO Biologics, EirGen Pharma Limited (“EirGen”) and BioReference. We amortize intangible assets with definite lives on a straight-line basis over their estimated useful lives. The estimated useful lives by asset class are as follows: technologies - 7-17 years, customer relationships - 7-20 years, product registrations - 7-10 years, covenants not to compete - 5 years, trade names - 5-10 years, other 9-13 years. We do not anticipate capitalizing the cost of product registration renewals, rather we expect to expense these costs, as incurred. Our goodwill is not tax deductible for income tax purposes in any jurisdiction in which we operate.

The changes in value of the intangible assets and goodwill during the nine months ended September 30, 2020 were primarily due to foreign currency fluctuations between the Chilean Peso, the Euro and the Shekel against the U.S. dollar.

The following table summarizes the changes in Goodwill by reporting unit during the nine months ended September 30, 2020.


	2020
(In thousands)	Balance at January 1		Foreign exchange and other		Balance at September 30th
Pharmaceuticals

Rayaldee	$	85,605	$	3,791	$	89,396

OPKO Chile	4,348		(272)		4,076
OPKO Biologics	139,784		—		139,784
OPKO Health Europe	7,394		336		7,730




Diagnostics
BioReference	434,809		—		434,809


	$	671,940	$	3,855	$	675,795