Balance Sheet Account Detail | BALANCE SHEET ACCOUNT DETAIL The composition of selected financial statement captions that comprise the accompanying Condensed Consolidated Balance Sheets are summarized below: (a) Cash and Cash Equivalents and Marketable Securities As of September 30, 2016 and December 31, 2015 , our holdings included within “cash and cash equivalents” and “marketable securities” were at major financial institutions. Our investment policy requires that investments in marketable securities be in only highly-rated instruments, which are primarily U.S. treasury bills or U.S. treasury-backed securities, and limited investments in securities of any single issuer. We maintain cash balances in excess of federally insured limits with reputable financial institutions. To a limited degree, the Federal Deposit Insurance Corporation ("FDIC") and other third parties insure these investments. However, these investments are not insured against the possibility of a complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. We manage such risks on our portfolio by investing in highly liquid, highly rated instruments, and limit investing in long-term maturity instruments. The carrying amount of our equity securities, money market funds, bank certificates of deposits, and mutual funds approximates their fair value (utilizing Level 1 or Level 2 inputs – see Note 2(xiii) ) because of our ability to immediately convert these instruments into cash with minimal expected change in value. The following is a summary of our “cash and cash equivalents” and “marketable securities”: Marketable Securities Cost Gross Gross Estimated Cash and Cash Current Long September 30, 2016 Bank deposits $ 28,134 $ — $ — $ 28,134 $ 28,134 $ — $ — Money market funds 138,472 — — 138,472 138,472 — — Bank certificates of deposits 5,246 — — 5,246 4,999 247 — Total cash and cash equivalents and marketable securities $ 171,852 $ — $ — $ 171,852 $ 171,605 $ 247 $ — December 31, 2015 Bank deposits $ 59,625 $ — $ — $ 59,625 $ 59,625 $ — $ — Money market funds 80,116 — — 80,116 80,116 — — Bank certificates of deposits 245 — — 245 — 245 — Total cash and cash equivalents and marketable securities $ 139,986 $ — $ — $ 139,986 $ 139,741 $ 245 $ — As of September 30, 2016 , none of these securities had been in a continuous unrealized loss position longer than one year. (b) Property and Equipment, Net of Accumulated Depreciation “Property and equipment, net of accumulated depreciation” consist of the following: September 30, 2016 December 31, 2015 Computer hardware and software $ 3,823 $ 3,785 Laboratory equipment 622 608 Office furniture 354 355 Leasehold improvements 2,880 2,872 Property and equipment, at cost 7,679 7,620 (Less): Accumulated depreciation (7,141 ) (6,702 ) Property and equipment, net of accumulated depreciation $ 538 $ 918 Depreciation expense (included within “total operating costs and expenses” in the accompanying Condensed Consolidated Statements of Operations) for the nine months ended September 30, 2016 and 2015 , was $0.4 million and $0.5 million , respectively. In February 2016, the FASB issued ASU 2016-02 , which amends the FASB Accounting Standards Codification and creates Topic 842, “Leases.” The new topic supersedes Topic 840, “Leases,” and requires lease assets and lease liabilities (including for operating leases) to be presented on the balance sheet at its "gross amount" and requires additional disclosures regarding lease arrangements. The guidance is effective for us beginning January 1, 2019, and mandates a "modified retrospective" transition method. We are currently assessing the impact this guidance will have on our consolidated financial statements. We presently do not have any capital lease arrangements, though we have several operating lease agreements that primarily relate to our principal executive office in Henderson, Nevada, and our research and development facility in Irvine, California, in addition to several other administrative office leases. (c) Inventories “Inventories” consist of the following: September 30, 2016 December 31, 2015 Raw materials $ 2,632 $ 1,606 Work-in-process* 10,091 4,228 Finished goods 1,380 1,498 (Less:) Non-current portion of inventories included within "other assets" ** (6,800 ) (3,156 ) Inventories $ 7,303 $ 4,176 * In January 2016, we received $3.4 million of ZEVALIN antibody materials for its future manufacture (representing strategic long-term supply). ** The "non-current" portion of inventories is presented within "other assets" in the accompanying Condensed Consolidated Balance Sheet at September 30, 2016 and December 31, 2015, respectively. This value of $6.8 million at September 30, 2016 represents product that we expect to sell beyond September 30, 2017. (d) Prepaid expenses and other assets “Prepaid expenses and other assets” consist of the following: September 30, 2016 December 31, 2015 Prepaid operating expenses $ 2,702 $ 3,507 Current portion of debt issuance costs* — — Prepaid expenses and other assets $ 2,702 $ 3,507 * Beginning January 1, 2016, our debt issuance costs (current and non-current portions) were retrospectively reclassified from “prepaid expenses and other assets” and "other assets" to a reduction of the carrying amount of “convertible senior notes” (i.e., contra-liability - see Note 14 ) within our accompanying Consolidated Balance Sheets, in accordance w ith the FASB-issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). These amounts were $1.7 million and $2.2 million (including current and non-current portions) as of September 30, 2016 and December 31, 2015, respectively. (e) Other receivables “Other receivables” consist of the following: September 30, 2016 December 31, 2015 Income tax receivable $ 1,264 $ 1,301 Insurance receivable 350 7,100 Mundipharma promissory note — 2,215 CASI note - short term* 1,500 — Eagle receivable for services and support costs ( Note 13 ) 1,896 — Research and development expenses - reimbursements due 1,726 1,699 Other miscellaneous receivables 355 257 Other receivables $ 7,091 $ 12,572 * This full balance was prospectively reclassified beginning March 31, 2016 to "other receivables" (presented within current assets on the accompanying Condensed Consolidated Balance Sheets) from "other assets" (presented within non-current assets) due to this note's maturity date of March 17, 2017 (i.e., within 12 months of September 30, 2016 ) - see Note 10 . (f) Intangible Assets and Goodwill “Intangible assets, net of accumulated amortization and impairment charges” consist of the following: September 30, 2016 Historical Accumulated Foreign Impairment Net Amount Full Remaining MARQIBO IPR&D (NHL and other novel indications) $ 17,600 $ — $ — $ — $ 17,600 n/a n/a EVOMELA distribution rights (1) 7,700 (296 ) — — 7,404 156 150 BELEODAQ distribution rights 25,000 (4,219 ) — — 20,781 160 133 MARQIBO distribution rights 26,900 (11,783 ) — — 15,117 81 42 FOLOTYN distribution rights (2) 118,400 (37,767 ) — — 80,633 152 74 ZEVALIN distribution rights – U.S. 41,900 (33,214 ) — — 8,686 123 30 ZEVALIN distribution rights – Ex-U.S. 23,490 (14,159 ) (3,818 ) — 5,513 96 42 FUSILEV distribution rights (3) 16,778 (9,618 ) — (7,160 ) — 56 0 FOLOTYN out-license (4) 27,900 (11,151 ) — (1,023 ) 15,726 110 70 Total intangible assets $ 305,668 $ (122,207 ) $ (3,818 ) $ (8,183 ) $ 171,460 (1) The FDA approval of EVOMELA in March 2016 triggered a $6 million payment due to CyDex Pharmaceuticals, Inc. (a wholly-owned subsidiary of Ligand Pharmaceuticals Incorporated ("Ligand")). This event also resulted in a reclassification of our $7.7 million "EVOMELA IPR&D" to "EVOMELA distribution rights" due to our ability to begin its commercialization with this FDA approval. Amortization commenced on April 1, 2016, in accordance with our capitalization policy for intangible assets. (2) Beginning June 2016, we adjusted the amortization period of our FOLOTYN distribution rights to November 2022 from March 2025, representing the period through which we expect to have patent protection from generic competition (see Note 16(g) ). (3) On February 20, 2015, the U.S. District Court for the District of Nevada found the patent covering FUSILEV to be invalid, which was upheld on appeal. On April 24, 2015, Sandoz began to commercialize a generic version of FUSILEV. This represented a “triggering event” under applicable GAAP in evaluating the value of our FUSILEV distribution rights as of March 31, 2015, resulting in a $7.2 million impairment charge (non-cash) in the first quarter of 2015. We accelerated amortization expense recognition in 2015 for the then remaining net book value of FUSILEV distribution rights. (4) On May 29, 2013, we amended our FOLOTYN collaboration agreement with Mundipharma International Corporation Limited ("Mundipharma"). As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and their royalty rates and milestone payments to us were modified. This constituted a change under which we originally valued the FOLOTYN out-license as part of business combination accounting, resulting in an impairment charge (non-cash) of $1.0 million in the second quarter of 2013. December 31, 2015 Historical Accumulated Foreign Impairment Net Amount MARQIBO IPR&D (NHL and other novel indications) $ 17,600 $ — $ — $ — $ 17,600 EVOMELA IPR&D 7,700 — — — 7,700 BELEODAQ distribution rights 25,000 (2,812 ) — — 22,188 MARQIBO distribution rights 26,900 (8,544 ) — — 18,356 FOLOTYN distribution rights 118,400 (29,474 ) — — 88,926 ZEVALIN distribution rights – U.S. 41,900 (30,608 ) — — 11,292 ZEVALIN distribution rights – Ex-U.S. 23,490 (12,632 ) (4,353 ) — 6,505 FUSILEV distribution rights 16,778 (9,618 ) — (7,160 ) — FOLOTYN out-license 27,900 (9,109 ) — (1,023 ) 17,768 Total intangible assets $ 305,668 $ (102,797 ) $ (4,353 ) $ (8,183 ) $ 190,335 Intangible asset amortization expense recognized during the nine months ended September 30, 2016 was $19.1 million , as compared to $27.9 million of amortization and impairment expense recognized in the prior year period (of which $7.2 million relates to the impairment of the FUSILEV distribution rights, and the remaining $20.7 million relates to scheduled amortization expense). Estimated intangible asset amortization expense for the remainder of 2016 and the five succeeding fiscal years and thereafter is as follows: Years Ending December 31, Remainder of 2016 $ 6,909 2017 27,635 2018 27,635 2019 25,029 2020 19,740 2021 18,266 2022 and thereafter 28,646 $ 153,860 “Goodwill” is comprised of the following: September 30, 2016 December 31, 2015 Acquisition of Talon (MARQIBO rights) $ 10,526 $ 10,526 Acquisition of ZEVALIN Ex-U.S. distribution rights 2,525 2,525 Acquisition of Allos (FOLOTYN rights) 5,346 5,346 Foreign currency exchange translation effects (380 ) (437 ) Goodwill $ 18,017 $ 17,960 (g) Other assets “Other assets” are comprised of the following: September 30, 2016 December 31, 2015 Equity securities and secured promissory note - CASI (see Note 10)* $ 9,146 $ 6,689 Supplies and deposits 181 185 2018 Convertible Notes issuance costs (excluding current portion)** — — Executive officer life insurance – cash surrender value 11,845 9,181 Inventories - non-current portion 6,800 3,156 Other miscellaneous assets 43 — Other assets $ 28,015 $ 19,211 * These equity securities were excluded from “marketable securities” (see Note 3(a) ) due to our intent to hold these securities for at least one year beyond September 30, 2016 , as discussed in Note 10 . The “unrealized gain on available-for-sale securities" within the Condensed Consolidated Statements of Comprehensive Loss, totaled $3.0 million , net of income tax, for the nine months ended September 30, 2016 . ** Beginning January 1, 2016, our debt issuance costs (current and non-current portions) were retrospectively reclassified from “prepaid expenses and other assets” and "other assets" to a reduction of the carrying amount of “convertible senior notes” (i.e., contra-liability - see Note 14 ) within our accompanying Consolidated Balance Sheets, in accordance w ith ASU 2015-03. These amounts were $1.7 million and $2.2 million (including current and non-current portions) as of September 30, 2016 and December 31, 2015 , respectively. (h) Accounts payable and other accrued liabilities “Accounts payable and other accrued liabilities” are comprised of the following : September 30, 2016 December 31, 2015 Trade accounts payable and other accrued liabilities $ 27,180 $ 26,684 Accrued rebates 10,130 18,166 Accrued product royalty 5,286 4,908 Allowance for returns 2,237 1,394 Accrued data and distribution fees 2,996 1,830 Accrued GPO administrative fees 342 1,058 Accrued inventory management fee 323 498 Allowance for chargebacks 1,483 2,001 Accounts payable and other accrued liabilities $ 49,977 $ 56,539 Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets specifically for GTN estimates (see Note 2(i) ) are as follows: Rebates and Data and Returns Balance as of December 31, 2014 $ 45,822 $ 8,284 $ 1,135 Add: provisions 75,498 15,928 1,486 (Less): credits or actual allowances (101,153 ) (20,826 ) (1,227 ) Balance as of December 31, 2015 20,167 3,386 1,394 Add: provisions 67,390 10,235 1,558 (Less): credits or actual allowances (75,944 ) (9,960 ) (715 ) Balance as of September 30, 2016 $ 11,613 $ 3,661 $ 2,237 (i) Deferred revenue Deferred revenue (current and non-current) is comprised of the following: September 30, 2016 December 31, 2015 Mundipharma deferred revenue (see Note 11 ) $ 1,700 $ — EVOMELA deferred revenue* 3,094 — FUSILEV deferred revenue** — 6,083 Dr. Reddy's out-license (see Note 16(b)(iii) ) 405 430 Deferred revenue $ 5,199 $ 6,513 *We commercialized EVOMELA beginning in April 2016, and have deferred revenue recognition (see Note 2(i)(a) ) for any product shipped to our distributors, but not ordered and received by end-users as of September 30, 2016 . **In the third quarter of 2015, we deferred revenue recognition related to certain FUSILEV product shipments that did not meet our revenue recognition criteria (see Note 2(i)(a )), aggregating $9.9 million . Specifically, this deferral resulted from our inability to concurrently estimate future rebate values (with requisite precision) offered to our customers in order to compete with generic products. During the fourth quarter of 2015, we recognized $3.8 million for these third quarter shipments, and $6.1 million remained deferred as of December 31, 2015 . In the first quarter of 2016, this $6.1 million of deferred revenue was recognized in full. (j) Other long-term liabilities Other long-term liabilities are comprised of the following: September 30, 2016 December 31, 2015 Accrued executive deferred compensation $ 7,797 $ 6,458 Deferred rent (non-current portion) 193 248 Clinical study holdback costs, non-current 44 — Other tax liabilities 738 738 Other long-term liabilities $ 8,772 $ 7,444 |