Annual report pursuant to Section 13 and 15(d)

Balance Sheet Account Details

v3.8.0.1
Balance Sheet Account Details
12 Months Ended
Dec. 31, 2017
Other Balance Sheet Details [Abstract]  
Balance Sheet Account Details
Balance Sheet Account Details

Short-term Investments
The following table summarizes the various investment categories at December 31, 2017 and 2016 (in thousands):
 
Cost
 
Gross unrealized
gains
 
Gross unrealized
losses
 
Estimated
fair value
December 31, 2017
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
     Bank deposits
$
80,095

 
$
6

 
$
(42
)
 
$
80,059

     Corporate bonds
55,335

 

 
(96
)
 
55,239

     Corporate equity securities
207

 
1,689

 

 
1,896

     Commercial paper
27,933

 

 
(20
)
 
27,913

     Agency bonds
4,991

 

 
(1
)
 
4,990

     U.S. Government bonds
8,939

 

 
(10
)
 
8,929

     Municipal bonds
2,028

 

 
(13
)
 
2,015

 
$
179,528

 
$
1,695

 
$
(182
)
 
$
181,041

December 31, 2016
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
     Bank deposits
$
40,715

 
$
19

 
$

 
$
40,734

     Corporate bonds
11,031

 

 
(5
)
 
11,026

     Corporate equity securities
1,512

 
1,542

 

 
3,054

     Commercial paper
33,074

 
2

 
(9
)
 
33,067

     Agency bonds
7,294

 
1

 

 
7,295

     U.S. Government bonds
7,508

 

 
(1
)
 
7,507

     Municipal bonds
19,624

 

 
(11
)
 
19,613

 
$
120,758

 
$
1,564

 
$
(26
)
 
$
122,296



Other current assets consist of the following (in thousands):
 
December 31,
 
2017
 
2016
Prepaid expenses
$
1,017

 
$
1,864

Other receivables
497

 
311

 
$
1,514

 
$
2,175



Property and equipment is stated at cost and consists of the following (in thousands):
 
December 31,
 
2017
 
2016
Lab and office equipment
$
3,460

 
$
1,067

Leasehold improvements
1,917

 
1,754

Computer equipment and software
697

 
569

 
6,074

 
3,390

Less accumulated depreciation and amortization
(1,862
)
 
(1,571
)
 
$
4,212

 
$
1,819


Depreciation of equipment is computed using the straight-line method over the estimated useful lives of the assets which range from three to ten years. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or their related lease term, whichever is shorter. Depreciation expense of $0.4 million, $0.2 million, and $0.2 million was recognized for the years ended December 31, 2017, 2016, and 2015, respectively and is included in operating expenses.

Goodwill and identifiable intangible assets consist of the following (in thousands):
 
December 31,
 
2017
 
2016
Indefinite lived intangible assets
 
 
 
     IPR&D
$
7,923

 
$
12,246

     Goodwill
85,959

 
72,207

Definite lived intangible assets
 
 
 
     Complete technology
222,900

 
182,577

          Less: Accumulated amortization
(23,301
)
 
(12,792
)
     Trade name
2,642

 
2,642

          Less: Accumulated amortization
(916
)
 
(784
)
     Customer relationships
29,600

 
29,600

          Less: Accumulated amortization
(10,264
)
 
(8,784
)
Total goodwill and other identifiable intangible assets, net
$
314,543

 
$
276,912



Amortization of finite lived intangible assets is computed using the straight-line method over the estimated useful life of the asset of 20 years. Amortization expense of $11.3 million, $10.6 million, and $2.4 million was recognized for the years ended December 31, 2017 and 2016, and 2015. Estimated amortization expense for the years ending December 31, 2018 through 2022 is $12.8 million per year. For each of the years ended December 31, 2017, 2016, and 2015, there was no impairment of intangible assets with finite lives.

    

Accrued liabilities consist of the following (in thousands):
 
December 31,
 
2017
 
2016
Compensation
$
4,085

 
$
2,603

Legal
430

 
829

Amounts owed to former licensees
396

 
899

Royalties owed to third parties
954

 
942

Deferred revenue
173

 

Other
1,339

 
1,124

 
$
7,377

 
$
6,397



In connection with the acquisition of CyDex in January 2011, we issued a series of CVRs and also assumed certain contingent liabilities. We may be required to make additional payments upon achievement of certain clinical and regulatory milestones to the CyDex shareholders and former license holders. We paid CyDex shareholders, through 2016, 20% of all CyDex-related revenue, but only to the extent that, and beginning only when, CyDex-related revenue for the year exceeds $15.0 million; plus an additional 10% of all CyDex-related revenue recognized during such year, but only to the extent, and beginning only when aggregate CyDex-related revenue for such year exceeds $35.0 million.

In connection with the acquisition of Metabasis in January 2010, we entered into four CVR agreements with Metabasis shareholders. The CVRs entitle the holders to cash payments as frequently as every six months as proceeds are received by us upon the sale or licensing of any of the Metabasis drug development programs and upon the achievement of specified milestones.
  
Contingent liabilities consist of the following (in millions):
 
December 31, 2015
Payments
Fair Value Adjustment
December 31, 2016
Payments
Fair Value Adjustment
Additions
December 31, 2017
Cydex
$
9.5

$
(6.2
)
$
3.3

$
6.6

(5.0
)
$

$

$
1.6

Metabasis
4.0

(2.6
)
0.1

1.5


2.5


4.0

Crystal






8.4

8.4

Total
$
13.5

$
(8.8
)
$
3.4

$
8.1

$
(5.0
)
$
2.5

$
8.4

$
14.0


Other long-term liabilities consist of the following (in thousands):
 
December 31,
 
2017
 
2016
Deferred rent
$
321

 
$
357

Deposits
43

 
43

Other
359

 
287

 
$
723

 
$
687