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Balance Sheet Details | 12 Months Ended
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Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract] |
Balance Sheet Details | 4. Balance Sheet Details Inventories Inventories consist of the following (in thousands):
|  | December 31, |
|  | 2022 |  |  | 2021 |
Raw materials |  | $ | 13,928 |  |  | $ | 14,671 |
Work-in-process |  |  | 3,032 |  |  |  | 5,712 |
Finished goods |  |  | 84,561 |  |  |  | 71,320 |
Inventories |  | $ | 101,521 |  |  | $ | 91,703 |
Property and Equipment, net Property and equipment, net consist of the following (in thousands, except as indicated):
|  | Useful Life |  | December 31, |
|  | (in years) |  | 2022 |  |  | 2021 |
Surgical instruments |  | 4 |  | $ | 158,906 |  |  | $ | 130,432 |
Machinery and equipment |  | 7 |  |  | 9,502 |  |  |  | 11,092 |
Computer equipment |  | 3 |  |  | 4,753 |  |  |  | 5,694 |
Office furniture and equipment |  | 5 |  |  | 4,760 |  |  |  | 3,861 |
Leasehold improvements |  | various |  |  | 2,965 |  |  |  | 1,754 |
Construction in progress |  | n/a |  |  | 15,360 |  |  |  | 7,292 |
|  |  |  |  | 196,246 |  |  |  | 160,125 |
Less: accumulated depreciation |  |  |  |  | (94,294 | ) |  |  | (72,724 | )
Property and equipment, net |  |  |  | $ | 101,952 |  |  | $ | 87,401 |
Total depreciation expense was $31.0 million, $20.3 million and $9.2 million for the years ended December 31, 2022, 2021 and 2020 respectively. At December 31, 2022 and 2021, assets recorded under financing leases of $0.4 million were included in the machinery and equipment balance. Amortization of assets under financing leases is included in depreciation expense. Goodwill The change in the carrying amount of goodwill during the year ended December 31, 2022 included the following (in thousands):
December 31, 2021 |  | $ | 39,689 |
Purchase price allocation adjustment |  |  | 1,628 |
Foreign currency fluctuation |  |  | (1,542 | )
December 31, 2022 |  | $ | 39,775 |
Intangible Assets, net Intangible assets, net consist of the following (in thousands, except as indicated):
|  | Remaining Weighted Avg. Useful Life |  | Gross |  |  | Accumulated |  |  | Intangible |
December 31, 2022: |  | (in years) |  | Amount |  |  | Amortization |  |  | Assets, net |
Developed product technology |  | 7 |  | $ | 75,896 |  |  | $ | (13,420 | ) |  | $ | 62,476 |
Trademarks and trade names |  | 8 |  |  | 5,421 |  |  |  | (987 | ) |  |  | 4,434 |
Customer relationships |  | 4 |  |  | 14,240 |  |  |  | (6,906 | ) |  |  | 7,334 |
Distribution network |  | 2 |  |  | 2,413 |  |  |  | (2,041 | ) |  |  | 372 |
Total amortized intangible assets |  |  |  |  | 97,970 |  |  |  | (23,354 | ) |  |  | 74,616 |
Software in development |  | n/a |  |  | 2,503 |  |  |  |  |  |  | 2,503 |
In-process research and development |  | n/a |  |  | 5,662 |  |  |  |  |  |  | 5,662 |
Total intangible assets |  |  |  | $ | 106,135 |  |  | $ | (23,354 | ) |  | $ | 82,781 |
|  |  |  | . |  |  |  |  |  |  |
|  | Remaining Weighted Avg. Useful Life |  | Gross |  |  | Accumulated |  |  | Intangible |
December 31, 2021: |  | (in years) |  | Amount |  |  | Amortization |  |  | Assets, net |
Developed product technology |  | 12 |  | $ | 74,543 |  |  | $ | (5,768 | ) |  | $ | 68,775 |
Trademarks and trade names |  | 10 |  |  | 5,732 |  |  |  | (477 | ) |  |  | 5,255 |
Customer relationships |  | 5 |  |  | 14,732 |  |  |  | (5,264 | ) |  |  | 9,468 |
Distribution network |  | 3 |  |  | 2,413 |  |  |  | (1,840 | ) |  |  | 573 |
Total amortized intangible assets |  |  |  |  | 97,420 |  |  |  | (13,349 | ) |  |  | 84,071 |
In-process research and development |  | n/a |  |  | 1,203 |  |  |  |  |  |  | 1,203 |
Total intangible assets |  |  |  | $ | 98,623 |  |  | $ | (13,349 | ) |  | $ | 85,274 |
During the year ended December 31, 2021, in connection with the expiration and termination of the product manufacture and supply agreement (the “Supply Agreement”) with Globus Medical Ireland, Ltd., a subsidiary of Globus Medical, Inc., and its affiliated entities (collectively “Globus Medical”), the Company wrote off $32.6 million in fully amortized intangible assets. During the year ended December 31, 2021, in connection with the Company’s acquisition of EOS, as further described in Note 2, the Company recorded additions to definite-lived intangible assets in the amount of $71.5 million. Total expense related to amortization of intangible assets was $10.2 million, $6.4 million and $1.8 million for the years ended December 31, 2022, 2021 and 2020, respectively. Software in development assets begin amortizing when the projects are complete and the assets are ready for their intended use. In-process research and development assets begin amortizing when the related products reach full commercial launch. Future amortization expense related to intangible assets as of December 31, 2022 is as follows (in thousands):
Year Ending December 31, |  |  |
2023 |  | $ | 12,402 |
2024 |  |  | 12,300 |
2025 |  |  | 10,811 |
2026 |  |  | 10,811 |
2027 |  |  | 8,939 |
Thereafter |  |  | 19,353 |
Total |  | $ | 74,616 |
Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands):
|  | December 31, |
|  | 2022 |  |  | 2021 |
Payroll and payroll related |  | $ | 19,764 |  |  | $ | 18,449 |
Commissions and sales milestones |  |  | 17,444 |  |  |  | 12,420 |
Accrued legal expenses |  |  | 8,345 |  |  |  | 4,290 |
Royalties |  |  | 4,758 |  |  |  | 3,466 |
Orthotec litigation settlement obligation |  |  | 3,968 |  |  |  | 4,400 |
Inventory in -transit |  |  | 3,548 |  |  |  | 2,089 |
Debt issuance costs |  |  | 2,690 |  |  |  | — |
Administration fees |  |  | 1,912 |  |  |  | 1,698 |
Other taxes payable |  |  | 1,955 |  |  |  | 3,004 |
Professional fees |  |  | 1,238 |  |  |  | 394 |
Interest |  |  | 1,122 |  |  |  | 1,045 |
Other |  |  | 5,638 |  |  |  | 4,294 |
Total accrued expenses and other current liabilities |  | $ | 72,382 |  |  | $ | 55,549 |
Other Long-Term Liabilities Other long-term liabilities consist of the following (in thousands):
|  | December 31, |
|  | 2022 |  |  | 2021 |
Royalties |  | $ | 5,739 |  |  | $ | 5,833 |
Orthotec litigation settlement obligation |  |  | — |  |  |  | 3,587 |
Income tax-related liabilities |  |  | 980 |  |  |  | 1,522 |
Contract liabilities |  |  | 3,047 |  |  |  | 2,897 |
Other |  |  | 1,777 |  |  |  | 3,222 |
Other long-term liabilities |  | $ | 11,543 |  |  | $ | 17,061 |

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI https://asc.fasb.org/topic&trid=2122208 + Details
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