v2.4.0.8
Select Balance Sheet Details
3 Months Ended
Mar. 31, 2014
Balance Sheet Related Disclosures [Abstract]  
Select Balance Sheet Details
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Accounts Receivable, net
Accounts receivable, net consist of the following (in thousands):
 
 
March 31, 2014
 
December 31, 2013
Accounts receivable
$
39,968

 
$
42,443

Allowance for doubtful accounts
(1,130
)
 
(1,048
)
Accounts receivables, net
$
38,838

 
$
41,395


Inventories, net
Inventories, net consist of the following (in thousands):
 
 
March 31, 2014
 
December 31, 2013
 
Gross
 
Reserve for
excess and
obsolete
 
Net
 
Gross
 
Reserve for
excess and
obsolete
 
Net
Raw materials
$
3,996

 
$

 
$
3,996

 
$
4,375

 
$

 
$
4,375

Work-in-process
645

 

 
645

 
531

 

 
531

Finished goods
60,852

 
(22,951
)
 
37,901

 
60,979

 
(23,946
)
 
37,033

Inventories
$
65,493

 
$
(22,951
)
 
$
42,542

 
$
65,885

 
$
(23,946
)
 
$
41,939


Property and Equipment, net
Property and equipment, net consist of the following (in thousands except as indicated):
 
Useful lives
(in years)
 
March 31, 2014
 
December 31, 2013
Surgical instruments
4
 
$
62,602

 
$
62,636

Machinery and equipment
7
 
14,414

 
14,692

Computer equipment
3
 
3,143

 
3,357

Office furniture and equipment
5
 
3,861

 
3,703

Leasehold improvements
various
 
3,733

 
4,161

Building
39
 
77

 
52

Land
n/a
 
11

 
10

Construction in progress
n/a
 
1,270

 
1,228

 
 
 
89,111

 
89,839

Less accumulated depreciation and amortization
 
 
(60,975
)
 
(61,809
)
Property and equipment, net
 
 
$
28,136

 
$
28,030


Total depreciation expense was $3.3 million and $3.5 million for the three months ended March 31, 2014 and 2013, respectively. At March 31, 2014, assets recorded under capital leases of $2.4 million were included in the machinery and equipment balance. At December 31, 2013, assets recorded under capital leases of $1.8 million were included in the machinery and equipment balance and $0.6 million in construction in progress balance. Amortization of assets under capital leases was included in depreciation expense.
Intangible Assets, net
Intangible assets, net consist of the following (in thousands except for useful lives):
 
 
Useful lives
(in years)
 
March 31, 2014
 
December 31, 2013
Developed product technology
3-8
 
$
23,641

 
$
23,633

Distribution rights
3
 
2,388

 
2,343

Intellectual property
5
 
1,004

 
1,004

License agreements
1-7
 
16,716

 
17,686

Core technology
10
 
5,140

 
5,137

Trademarks and trade names
3-9
 
3,922

 
3,920

Customer-related
12-15
 
22,171

 
22,161

Distribution network
10-12
 
4,027

 
4,027

Physician education programs
10
 
3,163

 
3,160

Supply agreement
10
 
225

 
225

 
 
 
82,397

 
83,296

Less accumulated amortization
 
 
(45,221
)
 
(44,232
)
Intangible assets, net
 
 
$
37,176

 
$
39,064


Total amortization expense was $1.6 million and $2.7 million for the three months ended March 31, 2014 and 2013, respectively.
Future amortization expense related to intangible assets subject to amortization are as follows (in thousands):
Year Ending December 31,
 
Remainder of 2014
$
4,739

2015
6,060

2016
5,537

2017
5,240

2018
3,288

Thereafter
12,312

 
$
37,176


 Accrued Expenses
Accrued expenses consist of the following (in thousands):
 
 
March 31, 2014
 
December 31, 2013
Legal
$
1,376

 
$
2,139

Accounting
782

 
928

Severance
173

 
297

Restructuring
9,307

 
9,170

Sales milestones
1,958

 
1,828

Accrued taxes
924

 
1,120

Deferred rent
1,073

 
1,163

Royalties
2,436

 
2,347

Commissions
4,376

 
6,180

Payroll and related
10,196

 
9,369

Litigation settlements
22,708

 
22,600

Other
7,145

 
5,855

Total accrued expenses
$
62,454

 
$
62,996


Goodwill
The changes in the carrying amount of goodwill from December 31, 2013 through March 31, 2014 are as follows (in thousands):
 
 
 
Balance at December 31, 2013
$
183,004

Effect of foreign exchange rate on goodwill
84

Balance at March 31, 2014
$
183,088