Composition of Certain Financial Statement Captions |
Composition of Certain Financial Statement Captions | | | | | | | | | | | | | For the years ended December 31, | (In thousands) | 2022 | | 2021 | Accounts receivable, net | | | | Accounts receivable | $ | 131,474 | | | $ | 261,476 | | Less: allowance for doubtful accounts | (4,162) | | | (1,839) | | | $ | 127,312 | | | $ | 259,637 | | Inventories, net | | | | Finished products | $ | 37,139 | | | $ | 44,107 | | Consumable supplies | 31,275 | | | 39,447 | | Work in-process | 2,449 | | | 1,615 | | Raw materials | 6,771 | | | 6,112 | | Less: inventory reserve | (3,574) | | | (4,779) | | | $ | 74,060 | | | $ | 86,502 | | Other current assets and prepaid expenses | | | | | | | | Prepaid supplies | $ | 7,918 | | | $ | 10,641 | | Prepaid insurance | 4,496 | | | 4,383 | | Taxes recoverable | 8,191 | | | 5,598 | | Other receivables | 13,105 | | | 353 | | | | | | | | | | Other | 6,252 | | | 6,195 | | | $ | 39,962 | | | $ | 27,170 | | Property, plant and equipment, net: | | | | Machinery, medical and other equipment | $ | 136,048 | | | $ | 127,633 | | Leasehold improvements | 25,516 | | | 27,478 | | Furniture and fixtures | 11,271 | | | 11,638 | | Automobiles and aircraft | 12,808 | | | 12,602 | | Software | 14,218 | | | 14,507 | | Building | 18,314 | | | 10,661 | | Land | 2,317 | | | 2,421 | | Construction in process | 4,793 | | | 6,113 | | Less: accumulated depreciation | (142,406) | | | (133,326) | | | $ | 82,879 | | | $ | 79,727 | | Intangible assets, net: | | | | Technologies | $ | 826,282 | | | $ | 246,101 | | Customer relationships | 314,854 | | | 314,823 | | Trade names | 49,752 | | | 49,770 | | Covenants not to compete | 12,911 | | | 12,920 | | Licenses | 5,988 | | | 5,766 | | Product registrations | 6,831 | | | 6,995 | | Other | 5,861 | | | 6,128 | | Less: accumulated amortization | (398,959) | | | (320,820) | | | $ | 823,520 | | | $ | 321,683 | |
| | | | | | | | | | | | | For the years ended December 31, | (In thousands) | 2022 | | 2021 | Accrued expenses: | | | | Employee benefits | $ | 33,765 | | | $ | 45,939 | | Inventory received but not invoiced | 7,830 | | | 40,446 | | | | | | | | | | Commitments and contingencies | 4,295 | | | 27,819 | | Clinical trials | 4,700 | | | 4,867 | | Finance leases short-term | 2,809 | | | 2,257 | | Professional fees | 1,820 | | | 2,121 | | | | | | | | | | Contingent consideration | 62 | | | 487 | | Contract liabilities | — | | | 258 | | Other | 42,988 | | | 69,299 | | | $ | 98,269 | | | $ | 193,493 | | | | | | Other long-term liabilities: | | | | Mortgages and other debts payable | $ | 9,098 | | | $ | 2,224 | | Finance leases long-term | 7,089 | | | 2,924 | | Contingent consideration | 974 | | | 2,350 | | | | | | Contract liabilities | 138 | | | 208 | | | | | | | | | | | | | | Other | 10,072 | | | 7,356 | | | $ | 27,371 | | | $ | 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, on December 31, 2021, assets held for sale included $151.8 million of goodwill related to GeneDx. During the year ended December 31, 2022, we reclassified $590.2 million of IPR&D related to Somatrogon (hGH-CTP) from IPR&D in our 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 on December 31, 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 reflects the changes in the allowance for doubtful accounts, provision for inventory reserve and tax valuation allowance accounts: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (In thousands) | Beginning balance | | Charged to expense | | Written-off | | Charged to other | | Ending balance | 2022 | | | | | | | | | | Allowance for doubtful accounts | $ | (1,839) | | | (304) | | | (2,019) | | | — | | | $ | (4,162) | | Inventory reserve | $ | (4,779) | | | (4,059) | | | 5,264 | | | — | | | $ | (3,574) | | Tax valuation allowance | $ | (260,397) | | | (24,579) | | | — | | | 5,764 | | | $ | (279,212) | | 2021 | | | | | | | | | | Allowance for doubtful accounts | $ | (2,055) | | | (369) | | | 585 | | | — | | | $ | (1,839) | | Inventory reserve | $ | (2,321) | | | (6,461) | | | 4,003 | | | — | | | $ | (4,779) | | Tax valuation allowance | $ | (303,326) | | | 34,496 | | | — | | | 8,433 | | | $ | (260,397) | |
The following table summarizes the changes in Goodwill by reporting unit during the years ended December 31, 2022 and 2021. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2022 | | 2021 | (In thousands) | Gross goodwill at January 1 | Cumulative impairment at January 1 | | Acquisition and dispositions | Foreign exchange and other | Balance at December 31st | | Gross goodwill at January 1 | Cumulative impairment at January 1 | | Foreign exchange and other | Balance at December 31st | Pharmaceuticals | | | | | | | | | | | | | CURNA | $ | 4,827 | | $ | (4,827) | | | $ | — | | $ | — | | $ | — | | | $ | 4,827 | | $ | (4,827) | | | $ | — | | $ | — | | Rayaldee | 86,554 | | — | | | — | | (4,768) | | 81,786 | | | 93,418 | | — | | | (6,865) | | 86,554 | | FineTech | 11,698 | | (11,698) | | | — | | — | | — | | | 11,698 | | (11,698) | | | — | | — | | ModeX | — | | | | 80,432 | | — | | 80,432 | | | — | | — | | | — | | — | | OPKO Biologics | 139,784 | | — | | | — | | — | | 139,784 | | | 139,784 | | — | | | — | | 139,784 | | OPKO Chile | 3,760 | | — | | | — | | 7 | | 3,767 | | | 4,505 | | — | | | (745) | | 3,760 | | OPKO Health Europe | 7,478 | | — | | | — | | (421) | | 7,057 | | | 8,086 | | — | | | (608) | | 7,478 | | OPKO Mexico | 100 | | (100) | | | — | | — | | — | | | 100 | | (100) | | | — | | — | | Transition Therapeutics | 3,421 | | (3,421) | | | — | | — | | — | | | 3,421 | | (3,421) | | | — | | — | | | | | | | | | | | | | | | Diagnostics | | | | | | | | | | | | | BioReference | 434,809 | | — | | | (151,784) | | — | | 283,025 | | | 434,809 | | — | | | (151,784) | | 283,025 | | OPKO Diagnostics | 17,977 | | (17,977) | | | — | | — | | — | | | 17,977 | | (17,977) | | | — | | — | | | | | | | | | | | | | | | | $ | 710,408 | | $ | (38,023) | | | $ | (71,352) | | $ | (5,182) | | $ | 595,851 | | | $ | 718,625 | | $ | (38,023) | | | $ | (160,002) | | $ | 520,601 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign exchange and other amounts for the year ended December 31, 2021 includes amounts related to GeneDx which is included as Assets held for sale at December 31, 2021.
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