Composition of Certain Financial Statement Captions

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS


(In thousands)	September 30, 2022		December 31, 2021
Accounts receivable, net:
Accounts receivable	$	129,576	$	261,476
Less: allowance for credit losses	(6,388)		(1,839)
	$	123,188	$	259,637
Inventories, net:
Consumable supplies	$	30,211	$	39,447
Finished products	37,188		44,107
Work in-process	2,580		1,615
Raw materials	6,417		6,112
Less: inventory reserve	(4,967)		(4,779)
	$	71,429	$	86,502
Other current assets and prepaid expenses:
Taxes recoverable	$	5,161	$	5,598
Prepaid expenses	9,785		10,641



Prepaid insurance	7,331		4,383
Other receivables	9,899		353
Other	6,340		6,195
	$	38,516	$	27,170
Intangible assets, net:
Customer relationships	$	309,758	$	314,823
Technologies	812,118		246,101
Trade names	49,713		49,770

Covenants not to compete	12,897		12,920
Licenses	5,969		5,766
Product registrations	6,119		6,995
Other	5,483		6,128
Less: accumulated amortization	(366,921)		(320,820)
	$	835,136	$	321,683
Accrued expenses:
Inventory received but not invoiced	$	13,545	$	40,446
Commitments and contingencies	1,647		27,819
Employee benefits	45,124		45,939
Contract liabilities	257		258
Clinical trials	4,073		4,867

Contingent consideration	—		487
Finance leases short-term	2,580		2,257

Professional fees	1,630		2,121


Other	43,159		69,299
	$	112,015	$	193,493


(In thousands)	September 30, 2022		December 31, 2021
Other long-term liabilities:


Contingent consideration	$	1,671	$	2,350

Mortgages and other debts payable	8,970		2,224
Finance leases long-term	4,350		2,924
Contract liabilities	136		208
Other	7,425		7,356
	$	22,552	$	15,062

Our intangible assets and goodwill relate principally to our completed acquisitions of OPKO Renal, OPKO Biologics, EirGen, BioReference and ModeX. 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 - 5-20 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.

As of December 31, 2021, GeneDx met the held-for-sale accounting criteria and its related assets and liabilities were recognized at the lower of carrying value or fair value less costs to sell in the consolidated balance sheet. In addition, at December 31, 2021, Assets held for sale included $151.8 million of goodwill related to GeneDx.

In the first quarter of 2022, we reclassified $590.2 million of IPR&D related to Somatrogon (hGH-CTP) from IPR&D in our Condensed Consolidated Balance Sheet upon the approval of NGENLA (Somatrogon (hGH-CTP)) in Europe and Japan. The assets will be amortized on a straight-line basis over their estimated useful life of approximately 12 years. Other changes in value of the intangible assets and goodwill during the nine months ended September 30, 2022 and 2021 were primarily due to foreign currency fluctuations between the Chilean Peso, and the Euro against the U.S. dollar.

The following table summarizes the changes in Goodwill by reporting unit during the nine months ended September 30, 2022.


	2022
(In thousands)	Gross goodwill at January 1		Cumulative impairment at January 1		Acquisitions and dispositions		Foreign exchange and other		Balance at September 30
Pharmaceuticals
CURNA	$	4,827	$	(4,827)	$	—	$	—	$	—
Rayaldee	86,554		—		—		(11,509)		75,045
FineTech	11,698		(11,698)		—		—		—
ModeX	—		—		65,865		—		65,865
OPKO Biologics	139,784		—		—		—		139,784
OPKO Chile	3,760		—		—		(440)		3,320
OPKO Health Europe	7,478		—		—		(1,018)		6,460
OPKO Mexico	100		(100)		—		—		—
Transition Therapeutics	3,421		(3,421)		—		—		—

Diagnostics
BioReference	434,809		—		(151,784)		—		283,025
OPKO Diagnostics	17,977		(17,977)		—		—		—
	$	710,408	$	(38,023)	$	(85,919)	$	(12,966)	$	573,499