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Balance Sheet Details | 12 Months Ended
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Dec. 31, 2015
Balance Sheet Related Disclosures [Abstract] |
Balance Sheet Details | Balance Sheet Details Accounts Receivable Accounts receivable consist of the following (in thousands):
| December 31,
| 2015 |  | 2014
Accounts receivable | $ | 39,380 |  |  | $ | 41,233 |
Less allowance for doubtful accounts | (1,061 | ) |  | (793 | )
Accounts receivables, net | $ | 38,319 |  |  | $ | 40,440 |
Inventories Inventories consist of the following (in thousands):
| December 31,
| 2015 |  | 2014
Raw materials | $ | 7,237 |  |  | $ | 5,020 |
Work-in-process | 1,908 |  |  | 1,032 |
Finished goods | 55,393 |  |  | 57,020 |
| 64,538 |  |  | 63,072 |
Less reserve for excess and obsolete finished goods | (19,630 | ) |  | (21,325 | )
Inventories, net | $ | 44,908 |  |  | $ | 41,747 |
Property and Equipment Property and equipment consist of the following (in thousands except for useful lives):
| Useful lives (in years) |  | December 31,
2015 |  | 2014
Surgical instruments | 4 |  | $ | 65,723 |  |  | $ | 62,872 |
Machinery and equipment | 7 |  | 15,520 |  |  | 15,382 |
Computer equipment | 3 |  | 3,984 |  |  | 3,180 |
Office furniture and equipment | 5 |  | 3,746 |  |  | 3,789 |
Leasehold improvements | various |  | 3,856 |  |  | 3,841 |
Building | 39 |  | 65 |  |  | 65 |
Land | n/a |  | 9 |  |  | 9 |
Construction in progress | n/a |  | 354 |  |  | 1,320 |
|  |  | 93,257 |  |  | 90,458 |
Less accumulated depreciation and amortization |  |  | (71,312 | ) |  | (64,418 | )
Property and equipment, net |  |  | $ | 21,945 |  |  | $ | 26,040 |
Total depreciation expense was $13.0 million, $12.2 million and $14.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. At December 31, 2015, assets recorded under capital leases of $2.6 million were included in the machinery and equipment balance and $0.1 million are included in the construction in progress balance. At December 31, 2014, assets recorded under capital leases of $3.2 million were included in the machinery and equipment balance and $0.6 million are included in the construction in progress balance. Amortization of assets under capital leases is included in depreciation expense. Intangible Assets Intangible assets consist of the following (in thousands except for useful lives):
| Remaining Avg. Useful lives (in years) |  | December 31,
2015 |  | 2014
Developed product technology | 1 |  | $ | 21,633 |  |  | $ | 22,526 |
Distribution rights | 4 |  | 2,100 |  |  | 2,095 |
Intellectual property | — |  | 1,004 |  |  | 1,004 |
License agreements | 1 |  | 16,714 |  |  | 16,716 |
Core technology | 4 |  | 4,086 |  |  | 4,554 |
Trademarks and trade names | 2 |  | 3,245 |  |  | 3,559 |
Customer-related | 9 |  | 19,169 |  |  | 20,493 |
Distribution network | 5 |  | 4,027 |  |  | 4,027 |
Physician education programs | — |  | 2,513 |  |  | 2,802 |
Supply agreement | — |  | 225 |  |  | 225 |
|  |  | 74,716 |  |  | 78,001 |
Less accumulated amortization |  |  | (53,100 | ) |  | (47,742 | )
Intangible assets, net |  |  | $ | 21,616 |  |  | $ | 30,259 |
Total expense related to amortization of intangible assets was $6.1 million, $6.2 million and $11.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. In 2015, the Company determined that the physician education intangible asset acquired in the Scient’x acquisition was impaired. As a result, the Company recorded a $0.9 million expense, which is included in goodwill and intangible impairment in the year ended December 31, 2015. Prior to the impairment, amortization of the physician eduction intangible asset had been recorded in amortization of acquired intangible assets within operating expenses. On June 19, 2015, the Company entered into an exclusive distribution agreement with a third party to market a biologic product that would replace its existing NEXoss Synthetic Bone Graft. The Company expensed $0.3 million as an impairment charge in cost of goods sold for the write-off of an intangible asset related to this product. Additionally, due to a revised marketing strategy for the Company's Epicage interbody fusion device, the Company evaluated the related intangible asset for impairment in June 2015. As a result of this impairment analysis the Company expensed $0.9 million as an impairment charge in cost of goods sold for the write-off of an intangible asset related to this product. During 2013, the Company decided to discontinue marketing and selling of an adult stem cell product sold under the Company's private label name of PureGen and two additional products. The Company expensed $1.3 million as impairment charges in cost of goods sold in the year ended December 31, 2013 for the write-off of intangible assets related to these products. The future expected amortization expense related to intangible assets as of December 31, 2015 is as follows (in thousands):
Year Ending December 31, |
2016 | $ | 4,001 |
2017 | 3,995 |
2018 | 2,844 |
2019 | 2,410 |
2020 | 1,811 |
Thereafter | 6,555 |
Total | $ | 21,616 |
Goodwill The changes in the carrying amount of goodwill from December 31, 2014 through December 31, 2015 were as follows (in thousands):
| 2015 |  | 2014
Balance at January 1 | $ | 171,333 |  |  | $ | 183,004 |
Impairment charge | (164,266 | ) |  | — |
Effect of foreign exchange rate on goodwill | (7,067 | ) |  | (11,671 | )
Balance at December 31 | $ | — |  |  | $ | 171,333 |
Accrued Expenses Accrued expenses consist of the following (in thousands):
| December 31,
| 2015 |  | 2014
Commissions and sales milestones | $ | 5,920 |  |  | $ | 6,259 |
Payroll and payroll related | 5,577 |  |  | 8,291 |
Litigation settlements | 4,400 |  |  | 7,393 |
Accrued professional fees | 2,203 |  |  | 2,342 |
Royalties | 1,578 |  |  | 2,129 |
Restructuring and severance accruals | 1,358 |  |  | 849 |
Accrued taxes | 1,074 |  |  | 1,344 |
Accrued interest | 999 |  |  | 946 |
Other | 6,682 |  |  | 5,840 |
Total accrued expenses | $ | 29,791 |  |  | $ | 35,393 |

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