2015 Q4 Form 10-Q Financial Statement

#000123252415000157 Filed on November 09, 2015

View on sec.gov

Income Statement

Concept 2015 Q4 2015 Q3 2014 Q3
Revenue $340.9M $340.9M $306.6M
YoY Change 3.88% 11.18% 32.06%
Cost Of Revenue $24.00M $28.40M $27.00M
YoY Change -16.67% 5.19% 11.11%
Gross Profit $314.9M $310.4M $277.4M
YoY Change 6.59% 11.88% 34.58%
Gross Profit Margin 92.38% 91.05% 90.49%
Selling, General & Admin $124.3M $104.0M $93.50M
YoY Change 19.75% 11.28% 24.72%
% of Gross Profit 39.47% 33.52% 33.7%
Research & Development $29.50M $50.78M $22.42M
YoY Change 4816.67% 126.48% 89.61%
% of Gross Profit 9.37% 16.36% 8.08%
Depreciation & Amortization $26.50M $28.70M $32.40M
YoY Change -22.29% -11.42% 58.82%
% of Gross Profit 8.42% 9.25% 11.68%
Operating Expenses $177.5M $209.3M $248.5M
YoY Change 29483.33% -15.77% 88.87%
Operating Profit $137.4M $131.5M $58.04M
YoY Change -53.4% 126.64% -42.29%
Interest Expense -$10.10M -$12.65M -$14.53M
YoY Change -31.29% -12.94% 134.28%
% of Operating Profit -7.35% -9.62% -25.04%
Other Income/Expense, Net -$977.0K
YoY Change
Pretax Income $96.50M $117.9M $49.99M
YoY Change -16.23% 135.86% -46.67%
Income Tax $13.70M $29.95M $24.22M
% Of Pretax Income 14.2% 25.4% 48.45%
Net Earnings $82.76M $87.96M $25.77M
YoY Change 1.41% 241.38% -65.83%
Net Earnings / Revenue 24.28% 25.8% 8.4%
Basic Earnings Per Share $1.35 $1.43 $0.43
Diluted Earnings Per Share $1.32 $1.39 $0.41
COMMON SHARES
Basic Shares Outstanding 61.50M shares 61.44M shares 60.31M shares
Diluted Shares Outstanding 63.15M shares 62.68M shares

Balance Sheet

Concept 2015 Q4 2015 Q3 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $988.8M $998.9M $575.0M
YoY Change 44.56% 73.72% -2.29%
Cash & Equivalents $988.8M $998.9M $575.0M
Short-Term Investments $0.00 $999.0M $575.0M
Other Short-Term Assets $19.05M $18.97M $18.36M
YoY Change -10.67% 3.31% -1.02%
Inventory $19.45M $30.02M $37.61M
Prepaid Expenses $20.70M $21.28M $24.21M
Receivables $209.7M $195.8M $187.6M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.258B $1.315B $878.5M
YoY Change 23.81% 49.68% 8.45%
LONG-TERM ASSETS
Property, Plant & Equipment $85.57M $83.45M $44.21M
YoY Change 46.62% 88.78% 266.54%
Goodwill $657.1M $669.0M $724.4M
YoY Change -6.49% -7.64% 62.12%
Intangibles $1.186B $1.271B $1.551B
YoY Change -17.52% -18.05% 88.25%
Long-Term Investments
YoY Change
Other Assets $9.271M $25.39M $13.48M
YoY Change -41.81% 88.35% 110.95%
Total Long-Term Assets $2.075B $2.149B $2.469B
YoY Change -10.68% -12.95% 79.51%
TOTAL ASSETS
Total Short-Term Assets $1.258B $1.315B $878.5M
Total Long-Term Assets $2.075B $2.149B $2.469B
Total Assets $3.333B $3.464B $3.348B
YoY Change -0.19% 3.49% 53.17%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $21.81M $29.12M $29.67M
YoY Change -13.21% -1.84% 32.26%
Accrued Expenses $164.1M $166.4M $161.5M
YoY Change -0.01% 3.03% 51.78%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $37.59M $117.6M $9.444M
YoY Change 298.67% 1145.12% 69.49%
Total Short-Term Liabilities $226.6M $340.2M $223.7M
YoY Change 4.54% 52.05% 10.02%
LONG-TERM LIABILITIES
Long-Term Debt $1.151B $1.172B $1.331B
YoY Change -13.66% -11.96% 144.03%
Other Long-Term Liabilities $69.25M $59.67M $33.60M
YoY Change 80.38% 77.6% 100.61%
Total Long-Term Liabilities $1.220B $1.232B $1.365B
YoY Change -11.03% -9.76% 142.74%
TOTAL LIABILITIES
Total Short-Term Liabilities $226.6M $340.2M $223.7M
Total Long-Term Liabilities $1.220B $1.232B $1.365B
Total Liabilities $1.447B $1.572B $1.589B
YoY Change -8.91% -1.05% 107.49%
SHAREHOLDERS EQUITY
Retained Earnings $302.7M $260.2M -$34.67M
YoY Change 772.19% -850.52% 1196.41%
Common Stock $1.563B $1.534B $1.432B
YoY Change 7.19% 7.14% 19.19%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.706B $1.563B $1.341B
YoY Change
Total Liabilities & Shareholders Equity $3.333B $3.464B $3.348B
YoY Change -0.19% 3.49% 53.17%

Cashflow Statement

Concept 2015 Q4 2015 Q3 2014 Q3
OPERATING ACTIVITIES
Net Income $82.76M $87.96M $25.77M
YoY Change 1.41% 241.38% -65.83%
Depreciation, Depletion And Amortization $26.50M $28.70M $32.40M
YoY Change -22.29% -11.42% 58.82%
Cash From Operating Activities $119.7M $175.1M $129.7M
YoY Change -10.87% 35.0% -0.84%
INVESTING ACTIVITIES
Capital Expenditures -$3.400M -$5.200M -$83.10M
YoY Change -76.06% -93.74% 2496.88%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 $0.00
YoY Change
Cash From Investing Activities -$3.400M -$5.200M -$83.20M
YoY Change -75.89% -93.75% 2500.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -123.8M -94.50M 263.3M
YoY Change 1079.05% -135.89% -676.15%
NET CHANGE
Cash From Operating Activities 119.7M 175.1M 129.7M
Cash From Investing Activities -3.400M -5.200M -83.20M
Cash From Financing Activities -123.8M -94.50M 263.3M
Net Change In Cash -7.500M 75.40M 309.8M
YoY Change -106.84% -75.66% 278.27%
FREE CASH FLOW
Cash From Operating Activities $119.7M $175.1M $129.7M
Capital Expenditures -$3.400M -$5.200M -$83.10M
Free Cash Flow $123.1M $180.3M $212.8M
YoY Change -17.1% -15.27% 58.81%

Facts In Submission

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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents Continuing Operations
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CY2015Q3 us-gaap Effective Income Tax Rate Continuing Operations
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0.254
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us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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4075000 USD
us-gaap Excess Tax Benefit From Share Based Compensation Financing Activities
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us-gaap Excess Tax Benefit From Share Based Compensation Operating Activities
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4075000 USD
us-gaap Excess Tax Benefit From Share Based Compensation Operating Activities
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24172000 USD
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2339000 USD
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0 USD
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us-gaap Impairment Of Intangible Assets Finitelived
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0 USD
us-gaap Impairment Of Intangible Assets Finitelived
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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us-gaap Income Tax Expense Benefit
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CY2015Q3 us-gaap Income Tax Expense Benefit
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29945000 USD
us-gaap Income Tax Expense Benefit
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92651000 USD
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us-gaap Increase Decrease In Accounts Payable
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4826000 USD
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50690000 USD
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10661000 USD
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19003000 USD
us-gaap Increase Decrease In Accrued Income Taxes Payable
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8993000 USD
us-gaap Increase Decrease In Accrued Liabilities
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19468000 USD
us-gaap Increase Decrease In Accrued Liabilities
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4642000 USD
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us-gaap Increase Decrease In Deferred Revenue
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us-gaap Increase Decrease In Inventories
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3595000 USD
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5775000 USD
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12910000 USD
us-gaap Increase Decrease In Other Noncurrent Liabilities
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18469000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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-4262000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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0 shares
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IncrementalCommonSharesAttributableToCallOptionsAndWarrants
0 shares
us-gaap Incremental Common Shares Attributable To Call Options And Warrants
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0 shares
CY2014Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
CY2015Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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1927000 shares
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3437000 USD
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us-gaap Minority Interest Decrease From Redemptions
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us-gaap Operating Income Loss
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CY2015Q3 us-gaap Operating Leases Future Minimum Payments Due In Two Years
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us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Net Of Tax
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us-gaap Payments For Previous Acquisition
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us-gaap Payments To Acquire Productive Assets
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments Related To Tax Withholding For Share Based Compensation
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us-gaap Payments Related To Tax Withholding For Share Based Compensation
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us-gaap Payments To Acquire Additional Interest In Subsidiaries
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us-gaap Profit Loss
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us-gaap Profit Loss
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us-gaap Repayments Of Lines Of Credit
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us-gaap Repayments Of Secured Debt
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us-gaap Repayments Of Secured Debt
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us-gaap Research And Development Asset Acquired Other Than Through Business Combination Written Off
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202000000 USD
CY2015Q3 us-gaap Research And Development Asset Acquired Other Than Through Business Combination Written Off
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us-gaap Research And Development Asset Acquired Other Than Through Business Combination Written Off
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us-gaap Research And Development Expense
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us-gaap Research And Development Expense
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105798000 USD
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34704000 USD
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CY2014Q3 us-gaap Revenues
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us-gaap Revenues
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340872000 USD
us-gaap Revenues
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304407000 USD
us-gaap Sales Revenue Goods Net
SalesRevenueGoodsNet
838493000 USD
CY2015Q3 us-gaap Sales Revenue Goods Net
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338754000 USD
CY2015Q3 us-gaap Selling General And Administrative Expense
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104044000 USD
CY2014Q3 us-gaap Selling General And Administrative Expense
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93501000 USD
us-gaap Selling General And Administrative Expense
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300420000 USD
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977895000 USD
us-gaap Selling General And Administrative Expense
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323564000 USD
us-gaap Share Based Compensation
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us-gaap Share Based Compensation
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us-gaap Stock Repurchased During Period Value
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us-gaap Stock Repurchased During Period Value
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21302000 USD
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CY2015Q3 us-gaap Stockholders Equity
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CY2013Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2014Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1340613000 USD
CY2014Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2015Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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1563477000 USD
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CY2015Q3 us-gaap Unrecorded Unconditional Purchase Obligation Balance On First Anniversary
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25600000 USD
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
59457000 shares
CY2015Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
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CY2014Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
59457000 shares
CY2015Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
61435000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
61145000 shares
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Concentrations of Risk</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents. Our investment policy permits investments in U.S. federal government and federal agency securities, corporate bonds or commercial paper issued by U.S. corporations, money market instruments, certain qualifying money market mutual funds, certain repurchase agreements, and tax-exempt obligations of U.S. states, agencies and municipalities and places restrictions on credit ratings, maturities, and concentration by type and issuer. We are exposed to credit risk in the event of a default by the financial institutions holding our cash, cash equivalents and marketable securities and issuers of investments to the extent recorded on the balance sheet.</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are also subject to credit risk from our accounts receivable related to our product sales. We monitor our exposure within accounts receivable and record a reserve against uncollectible accounts receivable as necessary. We extend credit to pharmaceutical wholesale distributors and specialty pharmaceutical distribution companies, primarily in the United States, and to other international distributors and hospitals. Customer creditworthiness is monitored and collateral is not required. We monitor deteriorating economic conditions in certain European countries which may result in variability of the timing of cash receipts and an increase in the average length of time that it takes to collect accounts receivable outstanding. Historically, we have not experienced significant credit losses on our accounts receivable and we do not expect to have write-offs or adjustments to accounts receivable which would have a material adverse effect on our financial position, liquidity or results of operations. As of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">September&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">five</font><font style="font-family:inherit;font-size:10pt;"> customers accounted for </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">88%</font><font style="font-family:inherit;font-size:10pt;"> of gross accounts receivable, including Express Scripts Specialty Distribution Services, Inc. and its affiliates, or Express Scripts, which accounted for </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">67%</font><font style="font-family:inherit;font-size:10pt;"> of gross accounts receivable and McKesson Corporation and its affiliates, or McKesson, which accounted for </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> of gross accounts receivable. As of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">, </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">five</font><font style="font-family:inherit;font-size:10pt;"> customers accounted for </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">86%</font><font style="font-family:inherit;font-size:10pt;"> of gross accounts receivable, including Express Scripts, which accounted for </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">66%</font><font style="font-family:inherit;font-size:10pt;"> of gross accounts receivable, and IDIS Limited, which accounted for </font><font style="font-family:inherit;font-size:10pt;">11%</font><font style="font-family:inherit;font-size:10pt;"> of gross accounts receivable.&#160;</font></div><div style="line-height:120%;padding-top:12px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We depend on single source suppliers and manufacturers for each of our products, product candidates and their active pharmaceutical ingredients.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates.</font></div></div>

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