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Balance sheet information | 6 Months Ended | 12 Months Ended
--- | --- | ---
Jul. 03, 2021 | Dec. 31, 2020
Balance sheet information | 2. Balance sheet information Cash, cash equivalents and restricted cash A summary of cash and cash equivalents and restricted cash is as follows:
|  | July 3, 2021 |  |  | December 31, 2020 |
Cash and cash equivalents |  | $ | 136,065 |  |  | $ | 86,839 |
Restricted cash |  |  | 2,003 |  |  |  | — |
|  | $ | 138,068 |  |  | $ | 86,839 |
Restricted cash consists of deposits into escrow with a financial institution for the purpose of paying specific indebtedness of a company acquired as part of a business combination (refer to Note 3. Business combinations and investments ). Accounts receivable, net Accounts receivable, net are amounts billed and currently due from customers. The Company records the amounts due net of allowance for credit losses. Collection of the consideration that the Company expects to receive typically occurs within 30 to 90 days of billing. The Company applies the practical expedient for contracts with payment terms of one year or less which does not consider the effects of the time value of money. Occasionally, the Company enters into payment agreements with patients that allow payment terms beyond one year. In those cases, the financing component is not deemed significant to the contract. Accounts receivable, net of allowances, consisted of the following as of:
|  | July 3, 2021 |  |  | December 31, 2020 |
Accounts receivable |  | $ | 105,048 |  |  | $ | 92,273 |
Less: Allowance for credit losses |  |  | (3,019 | ) |  |  | (3,990 | )
|  | $ | 102,029 |  |  | $ | 88,283 |
The Company maintains an allowance for credit losses for estimated losses resulting from the inability of its customers to make required payments. The allowance for credit losses is calculated by region and by customer type, where appropriate considering several factors including age of accounts, collection history, historical account write-offs, current economic conditions, and supportable forecasted economic expectations. Due to the short-term nature of its receivables, the estimate of expected credit losses is based on aging of the account receivable balances. The allowance is adjusted on a specific identification basis for certain accounts as well as pooling of accounts with similar characteristics. An increase in the provision for credit losses may be required when the financial condition of the Company’s customers or its collection experience deteriorates. The Company has a diverse customer base with no single customer representing ten percent of sales or accounts receivable. Historically, the Company’s reserves have been adequate to cover credit losses. The Company’s exposure to credit losses may increase if its customers are adversely affected by changes in health care laws, coverage and reimbursement, economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the COVID-19 pandemic, or other customer-specific factors. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and determined that the estimate of credit losses was not significantly impacted. Estimates are used to determine the allowance, which are based on an assessment of anticipated payment and all other historical, current and future information that is reasonably available. Changes in credit losses were as follows :
|  | Three Months Ended |  |  | Six Months Ended |
|  | July 3, 2021 |  |  | June 27, 2020 |  |  | July 3, 2021 |  |  | June 27, 2020 |
Beginning balance |  | $ | (3,811 | ) |  | $ | (4,684 | ) |  | $ | (3,990 | ) |  | $ | (4,146 | )
Recovery (provision) |  |  | 550 |  |  |  | (619 | ) |  |  | 359 |  |  |  | (1,162 | )
Write-offs |  |  | 278 |  |  |  | 167 |  |  |  | 684 |  |  |  | 252 |
Recoveries |  |  | (36 | ) |  |  | (113 | ) |  |  | (72 | ) |  |  | (193 | )
Ending balance |  | $ | (3,019 | ) |  | $ | (5,249 | ) |  | $ | (3,019 | ) |  | $ | (5,249 | )
Inventory Inventory consisted of the following as of:
|  | July 3, 2021 |  |  | December 31, 2020 |
Raw materials and supplies |  | $ | 4,202 |  |  | $ | 3,665 |
Finished goods |  |  | 31,538 |  |  |  | 26,323 |
Gross |  |  | 35,740 |  |  |  | 29,988 |
Excess and obsolete reserves |  |  | (1,720 | ) |  |  | (868 | )
|  | $ | 34,020 |  |  | $ | 29,120 |
Accrued liabilities Accrued liabilities consisted of the following as of:
|  | July 3, 2021 |  |  | December 31, 2020 |
Gross-to-net deductions |  | $ | 63,980 |  |  | $ | 43,656 |
Bonus and commission |  |  | 12,493 |  |  |  | 15,188 |
Compensation and benefits |  |  | 7,932 |  |  |  | 5,875 |
Income and other taxes |  |  | 2,385 |  |  |  | 2,434 |
Other liabilities |  |  | 18,456 |  |  |  | 21,034 |
|  | $ | 105,246 |  |  | $ | 88,187 |
The Company completed a restructuring plan during the fourth quarter of 2020 and the remaining $247 accrued liabilities were paid during the six months ended July 3, 2021. |
Bio Ventus LLC [Member] |  |
Balance sheet information |  | 3. Balance sheet information​​​​​​​ Accounts receivable, net Accounts receivable, net of allowances, consisted of the following as of December 31:
|  | 2020 |  |  | 2019 |
Accounts receivable |  | $ | 92,273 |  |  | $ | 89,274 |
Less: Allowance for credit losses |  |  | (3,990 | ) |  |  | (4,146 | )
|  | $ | 88,283 |  |  | $ | 85,128 |
The Company maintains an allowance for credit losses for estimated losses resulting from the inability of its customers to make required payments. The allowance for credit losses is calculated by region and by customer type, where appropriate considering several factors including age of accounts, collection history, historical account write-offs, current economic conditions, and supportable forecasted economic expectations. Due to the short-term nature of its receivables, the estimate of expected credit losses is based on aging of the account receivable balances. The allowance is adjusted on a specific identification basis for certain accounts as well as pooling of accounts with similar characteristics. An increase in the provision for credit losses may be required when the financial condition of the Company’s customers or its collection experience deteriorates. The Company has a diverse customer base with no single customer representing ten percent of sales or accounts receivable. Historically, the Company’s reserves have been adequate to cover credit losses. The Company’s exposure to credit losses may increase if its customers are adversely affected by changes in health care laws, coverage and reimbursement, economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the COVID-19 pandemic, or other customer-specific factors. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and determined that the estimate of credit losses was not significantly impacted. Estimates are used to determine the allowance, which are based on an assessment of anticipated payment and all other historical, current and future information that is reasonably available. Changes in credit losses were as follows for the years ended December 31:
|  | 2020 |  |  | 2019 |
Beginning balance |  | $ | (4,146 | ) |  | $ | (4,497 | )
Provision for credit losses |  |  | (1,215 | ) |  |  | (2,242 | )
Write-offs |  |  | 1,787 |  |  |  | 2,949 |
Recoveries |  |  | (416 | ) |  |  | (356 | )
Ending balance |  | $ | (3,990 | ) |  | $ | (4,146 | )
Inventory Inventory consisted of the following as of December 31:
|  | 2020 |  |  | 2019 |
Raw materials and supplies |  | $ | 3,665 |  |  | $ | 3,349 |
Finished goods |  |  | 26,323 |  |  |  | 24,509 |
Gross |  |  | 29,988 |  |  |  | 27,858 |
Excess and obsolete reserves |  |  | (868 | ) |  |  | (532 | )
|  | $ | 29,120 |  |  | $ | 27,326 |
Changes in excess and obsolete reserves for inventory were as follows for the years ended December 31:
|  | 2020 |  |  | 2019 |
Balance, beginning of period |  | $ | (532 | ) |  | $ | (570 | )
Provision for losses |  |  | (904 | ) |  |  | (870 | )
Write-offs |  |  | 568 |  |  |  | 908 |
|  | $ | (868 | ) |  | $ | (532 | )
Property and equipment, net Property and equipment consisted of the following as of December 31:
|  | 2020 |  |  | 2019 |
Computer equipment and software |  | $ | 20,547 |  |  | $ | 16,854 |
Leasehold improvements |  |  | 3,126 |  |  |  | 2,918 |
Furniture and fixtures |  |  | 1,474 |  |  |  | 1,451 |
Machinery and equipment |  |  | 1,234 |  |  |  | 1,138 |
Assets not yet placed in service |  |  | 819 |  |  |  | 370 |
|  |  | 27,200 |  |  |  | 22,731 |
Less accumulated depreciation |  |  | (20,321 | ) |  |  | (18,242 | )
|  | $ | 6,879 |  |  | $ | 4,489 |
Depreciation expense was $2,106, $2,579 and $3,439 for the years ended December 31, 2020, 2019 and 2018, respectively. Goodwill and intangible assets, net There were no changes to goodwill during the years ended December 31, 2020 and 2019. Following is a summary of goodwill by reportable segment:
|  | U.S. |  |  | International |  |  | Consolidated |
Balance at December 31, 2020 and 2019 |  | $ | 41,040 |  |  | $ | 8,760 |  |  | $ | 49,800 |
Intangible assets consisted of the following as of December 31:
|  | 2020 |  |  | 2019 |
Intellectual property |  | $ | 263,422 |  |  | $ | 263,422 |
Distribution rights |  |  | 60,700 |  |  |  | 59,700 |
Customer relationships |  |  | 57,700 |  |  |  | 57,700 |
IPR&D |  |  | 1,445 |  |  |  | 11,095 |
Developed technology and other |  |  | 13,999 |  |  |  | 4,649 |
Total carrying amount |  |  | 397,266 |  |  |  | 396,566 |
Less accumulated amortization: |  |  |  |  |  |  |  |
Intellectual property |  |  | (117,281 | ) |  |  | (100,982 | )
Distribution rights |  |  | (34,461 | ) |  |  | (28,716 | )
Customer relationships |  |  | (51,247 | ) |  |  | (46,407 | )
Developed technology and other |  |  | (3,786 | ) |  |  | (3,404 | )
Total accumulated amortization |  |  | (206,775 | ) |  |  | (179,509 | )
Intangible assets, net before currency translation |  |  | 190,491 |  |  |  | 217,057 |
Currency translation |  |  | 1,159 |  |  |  | (547 | )
|  | $ | 191,650 |  |  | $ | 216,510 |
The Company filed a 510(k) in 2019 and began commercializing a next-generation surgical product in the third quarter of 2020. As a result, $9,650 of IPR&D was reclassified to developed technology and will be amortized over 10 years. On December 22, 2020, the Company entered into an amended and restated distribution agreement with the sole supplier of the Company’s five injection OA product. This agreement provided non-exclusive U.S. market distribution rights until December 31, 2028. The amended and restated distribution agreement created a $1,000 distribution right that will be amortized over 8 years, which was capitalized as an intangible asset and included in accrued liabilities on the consolidated balance sheets as of December 31, 2020.​​​​​​​ Amortization expense related to intangible assets was $27,565, $26,252 and $26,622 for the years ended December 31, 2020, 2019 and 2018 of which $7,455, $6,416 and $7,766 are included in ending inventory at December 31, 2020, 2019 and 2018, respectively. Estimated amortization expense for the years ended December 31, 2021 through 2025 is expected to be $28,262, $23,910, $22,297, $22,297 and $21,259, respectively. Accrued liabilities Accrued liabilities consisted of the following at December 31:
|  | 2020 |  |  | 2019 |
Gross-to-net deductions |  | $ | 43,656 |  |  | $ | 14,622 |
Bonus and commission |  |  | 15,188 |  |  |  | 14,200 |
Reserve for estimated overpayments from third-party payers |  |  | 2,790 |  |  |  | 6,801 |
Compensation and benefits |  |  | 5,875 |  |  |  | 3,231 |
Income and other taxes |  |  | 2,434 |  |  |  | 2,555 |
Other liabilities |  |  | 18,244 |  |  |  | 11,418 |
|  | $ | 88,187 |  |  | $ | 52,827 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
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