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Composition of Certain Financial Statement Captions
12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Composition of Certain Financial Statement Captions Composition of Certain Financial Statement Captions
For the years ended December 31,
(In thousands)20222021
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 supplies31,275 39,447 
Work in-process2,449 1,615 
Raw materials6,771 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 insurance4,496 4,383 
Taxes recoverable8,191 5,598 
Other receivables13,105 353 
Other6,252 6,195 
$39,962 $27,170 
Property, plant and equipment, net:
Machinery, medical and other equipment$136,048 $127,633 
Leasehold improvements25,516 27,478 
Furniture and fixtures11,271 11,638 
Automobiles and aircraft12,808 12,602 
Software14,218 14,507 
Building18,314 10,661 
Land2,317 2,421 
Construction in process4,793 6,113 
Less: accumulated depreciation(142,406)(133,326)
$82,879 $79,727 
Intangible assets, net:
Technologies$826,282 $246,101 
Customer relationships314,854 314,823 
Trade names49,752 49,770 
Covenants not to compete12,911 12,920 
Licenses5,988 5,766 
Product registrations6,831 6,995 
Other5,861 6,128 
Less: accumulated amortization(398,959)(320,820)
$823,520 $321,683 
For the years ended December 31,
(In thousands)20222021
Accrued expenses:
Employee benefits$33,765 $45,939 
Inventory received but not invoiced7,830 40,446 
Commitments and contingencies4,295 27,819 
Clinical trials4,700 4,867 
Finance leases short-term2,809 2,257 
Professional fees1,820 2,121 
Contingent consideration62 487 
Contract liabilities— 258 
Other42,988 69,299 
$98,269 $193,493 
Other long-term liabilities:
Mortgages and other debts payable$9,098 $2,224 
Finance leases long-term7,089 2,924 
Contingent consideration974 2,350 
Contract liabilities138 208 
Other10,072 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 $590.2 million of IPR&D related to Somatrogon (hGH-CTP) from IPR&D in our Consolidated Balance Sheet upon the approval of NGENLA (Somatrogon (hGH-CTP)) in Europe and Japan. The assets will be amortized on a straight-line basis over their estimated useful life of approximately 12 years. Other changes in value of the intangible assets and goodwill on December 31, 2022 and 2021, were primarily due to foreign currency fluctuations between the Chilean Peso, and the Euro against the U.S. dollar.
The following table reflects the changes in the allowance for doubtful accounts, provision for inventory reserve and tax valuation allowance accounts:
(In thousands)Beginning
balance
Charged
to
expense
Written-offCharged
to other
Ending
balance
2022
Allowance for doubtful accounts$(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.
20222021
(In thousands)Gross goodwill at January 1Cumulative impairment at January 1Acquisition and dispositionsForeign exchange and otherBalance at December 31stGross goodwill at January 1Cumulative impairment at January 1Foreign exchange and otherBalance at December 31st
Pharmaceuticals
CURNA$4,827 $(4,827)$— $— $— $4,827 $(4,827)$— $— 
Rayaldee86,554 — — (4,768)81,786 93,418 — (6,865)86,554 
FineTech11,698 (11,698)— — — 11,698 (11,698)— — 
ModeX— 80,432 — 80,432 — — — — 
OPKO Biologics139,784 — — — 139,784 139,784 — — 139,784 
OPKO Chile3,760 — — 3,767 4,505 — (745)3,760 
OPKO Health Europe7,478 — — (421)7,057 8,086 — (608)7,478 
OPKO Mexico100 (100)— — — 100 (100)— — 
Transition Therapeutics3,421 (3,421)— — — 3,421 (3,421)— — 
Diagnostics
BioReference434,809 — (151,784)— 283,025 434,809 — (151,784)283,025 
OPKO Diagnostics17,977 (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.