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Balance Sheet Details | 12 Months Ended
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Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract] |
Balance Sheet Details | 4. Balance Sheet Details Inventories Inventories consist of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Raw materials |  | $ | 23,394 |  |  | $ | 13,928 |
Work-in-process |  |  | 950 |  |  |  | 3,032 |
Finished goods |  |  | 112,498 |  |  |  | 84,561 |
Inventories |  | $ | 136,842 |  |  | $ | 101,521 |
Property and Equipment, net Property and equipment, net consist of the following (in thousands, except as indicated):
|  | Useful Life |  | December 31, |
|  | (in years) |  | 2023 |  |  | 2022 |
Surgical instruments |  | 4 |  | $ | 224,357 |  |  | $ | 158,906 |
Machinery and equipment |  | 7 |  |  | 11,633 |  |  |  | 9,502 |
Computer equipment |  | 3 |  |  | 5,778 |  |  |  | 4,753 |
Office furniture and equipment |  | 5 |  |  | 6,225 |  |  |  | 4,760 |
Leasehold improvements |  | various |  |  | 3,986 |  |  |  | 2,965 |
Construction in progress |  | n/a |  |  | 24,732 |  |  |  | 15,360 |
|  |  |  |  | 276,711 |  |  |  | 196,246 |
Less: accumulated depreciation |  |  |  |  | (126,876 | ) |  |  | (94,294 | )
Property and equipment, net |  |  |  | $ | 149,835 |  |  | $ | 101,952 |
Total depreciation expense was $40.9 million, $31.0 million and $20.3 million for the years ended December 31, 2023, 2022 and 2021 respectively. At December 31, 2023 and 2022, assets recorded under financing leases of $1.1 million and $0.4 million, respectively, were included in the property and equipment, net, 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, 2023 included the following (in thousands):
December 31, 2022 |  | $ | 47,367 |
Goodwill acquired during the year |  |  | 24,582 |
Foreign currency fluctuation |  |  | 1,054 |
December 31, 2023 |  | $ | 73,003 |
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, 2023: |  | (in years) |  | Amount |  |  | Amortization |  |  | Assets, net |
Developed product technology |  | 6 |  | $ | 106,782 |  |  | $ | (26,560 | ) |  | $ | 80,222 |
Trademarks and trade names |  | 7 |  |  | 5,588 |  |  |  | (1,561 | ) |  |  | 4,027 |
Customer relationships |  | 3 |  |  | 14,504 |  |  |  | (8,692 | ) |  |  | 5,812 |
Distribution network |  | 1 |  |  | 2,413 |  |  |  | (2,242 | ) |  |  | 171 |
Total amortized intangible assets |  |  |  |  | 129,287 |  |  |  | (39,055 | ) |  |  | 90,232 |
Software in development |  | n/a |  |  | 7,934 |  |  |  | — |  |  |  | 7,934 |
In-process research and development |  | n/a |  |  | 4,285 |  |  |  | — |  |  |  | 4,285 |
Total intangible assets |  |  |  | $ | 141,506 |  |  | $ | (39,055 | ) |  | $ | 102,451 |
|  |  |  | . |  |  |  |  |  |  |
|  | 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 |
During the year ended December 31, 2023, in connection with the Company's acquisition of Valence, as further described in Note 2, the Company recorded additions to developed product technology and goodwill in the amount of $26.9 million and $24.6 million, respectively. The intangible asset acquired will be amortized on a straight-line basis over a useful life of seven years. Total expense related to amortization of intangible assets was $15.2 million, $10.2 million and $6.4 million for the years ended December 31, 2023, 2022 and 2021, 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 and software in development assets both begin amortizing when the related products reach full commercial launch or are approved and ready for their intended use. Future amortization expense related to intangible assets as of December 31, 2023 is as follows (in thousands):
Year Ending December 31, |  |  |
2024 |  | $ | 16,699 |
2025 |  |  | 15,211 |
2026 |  |  | 15,211 |
2027 |  |  | 12,989 |
2028 |  |  | 11,057 |
Thereafter |  |  | 19,065 |
Total |  | $ | 90,232 |
Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Payroll and payroll related |  | $ | 29,207 |  |  | $ | 19,764 |
Commissions and sales milestones |  |  | 21,414 |  |  |  | 17,444 |
Accrued legal expenses |  |  | 10,994 |  |  |  | 8,345 |
Royalties |  |  | 7,968 |  |  |  | 4,758 |
Administration fees |  |  | 2,732 |  |  |  | 1,912 |
Inventory in-transit |  |  | 2,251 |  |  |  | 3,548 |
Other taxes payable |  |  | 1,985 |  |  |  | 1,955 |
Interest |  |  | 1,753 |  |  |  | 1,122 |
Professional fees |  |  | 1,384 |  |  |  | 1,238 |
Orthotec litigation settlement obligation |  |  | — |  |  |  | 3,968 |
Debt issuance costs |  |  | — |  |  |  | 2,690 |
Other |  |  | 8,024 |  |  |  | 5,638 |
Total accrued expenses and other current liabilities |  | $ | 87,712 |  |  | $ | 72,382 |
Other Long-Term Liabilities Other long-term liabilities consist of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Income tax-related liabilities |  | $ | 5,838 |  |  | $ | 6,526 |
Contract liabilities |  |  | 2,561 |  |  |  | 3,047 |
Royalties |  |  | 1,065 |  |  |  | 5,739 |
Other |  |  | 1,739 |  |  |  | 1,777 |
Other long-term liabilities |  | $ | 11,203 |  |  | $ | 17,089 |

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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 -Topic 210 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//210/tableOfContent + Details
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