Use of Estimates and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Property, Plant and Equipment

Property and equipment are stated at cost and depreciated on a straight-line basis over the following estimated useful lives:

	Useful Life
Office furniture	Seven years
Computer hardware	Three years
Computer software	Three to eight years
Production equipment and molds	Three to seven years
Leasehold improvements	Shorter of expected useful life or remaining term of lease

Property and equipment consisted of the following:

	September 30, 2013			December 31, 2012
Production equipment, molds, and office furniture	$	7,668		$	7,256
Computer hardware and software	3,184			2,265
Leasehold improvements	3,055			2,819
Construction in progress (software and related implementation, production equipment, and leasehold improvements)	274			556
Property and equipment, at cost	$	14,181		$	12,896
Accumulated depreciation	(9,144		)	(7,912		)
Property and equipment, net	$	5,037		$	4,984

The Company recognized depreciation expense on property and equipment during the three and nine months ended September 30, 2013 and 2012 as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Depreciation expense	$	475	$	336	$	1,589	$	1,003

Schedule of Intangible Assets and Goodwill

Intangible assets with definite lives are amortized over their estimated useful lives using a method that reflects the pattern over which the economic benefit is expected to be realized, and is as follows:

	Useful Life
Goodwill	Indefinite lived
Trademarks and tradenames	Indefinite lived
In-process research and development	Indefinite lived until commercial launch of underlying technology
Developed technology	Thirteen years
Patents and license	Three to five years
Customer relationships	Three years

The following table is a summary of goodwill, indefinite lived intangible assets, finite lived intangible assets, and related accumulated amortization:

	September 30, 2013			December 31, 2012
Goodwill (1)	$	29,067		$	29,022
Intangible assets:
Indefinite lived intangibles
In-process research and development (2)	$	—		$	40,100
Trademarks and trade names	2,708			2,708
Total indefinite lived intangibles	$	2,708		$	42,808
Finite lived intangibles
Developed technology (2)	$	40,100		$	—
Accumulated amortization	(33		)	—
Developed technology, net	$	40,067		$	—
Patent	$	100		$	100
Accumulated amortization	(90		)	(75		)
Patent, net	$	10		$	25
License	$	100		$	100
Accumulated amortization	(34		)	(12		)
License, net	$	66		$	88
Customer relationships	$	533		$	522
Accumulated amortization	(222		)	(87		)
Customer relationships, net	$	311		$	435
Intangible assets (excluding goodwill), net	$	43,162		$	43,356

(1) Difference in goodwill value between these dates is solely due to a foreign currency translation adjustment.

(2) Was reclassified in the first quarter of 2013 to finite lived intangibles, which coincided with the European commercial launch of the product (Nellix System) associated with this intangible asset. A significant portion of this intangible asset will not begin amortization until the U.S. launch of this product, currently scheduled for 2016.