Balance Sheet Account Detail

(a) Property and Equipment

Property and equipment consisted of the following:



	December 31,
	2015			2014
Production equipment, molds, and office furniture	$	13,603		$	12,943
Computer hardware and software	6,380			6,457
Leasehold improvements	14,345			15,729
Construction in progress (software and related implementation, production equipment, and leasehold improvements)	510			2,564
Property and equipment, at cost	34,838			37,693
Accumulated depreciation	(11,483		)	(11,997		)
Property and equipment, net	$	23,355		$	25,696

Depreciation expense for property and equipment for the years ended December 31, 2015, 2014, and 2013 was $4.6 million, $2.7 million, and $2.1 million, respectively.

(b) Inventories

Inventories consisted of the following:



	December 31,
	2015		2014
Raw materials	$	7,701	$	6,728
Work-in-process	4,355		5,946
Finished goods	15,804		18,651
Inventories	$	27,860	$	31,325

The following table presents goodwill, indefinite lived intangible assets, finite lived intangible assets, and related accumulated amortization:



	December 31,
	2015			2014
Goodwill (1)	$	28,685		$	28,866

Intangible assets:
Indefinite lived intangibles
Trademarks and trade names	$	2,708		$	2,708

Finite lived intangibles
Developed technology (2)	$	40,100		$	40,100
Accumulated amortization	(690		)	(285		)
Developed technology, net	$	39,410		$	39,815

License	$	100		$	100
Accumulated amortization	(100		)	(71		)
License, net	$	—		$	29

Customer relationship	$	—		$	480
Accumulated amortization	—			(400		)
Customer relationship, net	$	—		$	80

Acquired Shonin approval (3)	$	1,000		$	1,000
Accumulated amortization	(1,000		)	(167		)
Acquired Shonin approval, net	$	—		$	833

Intangible assets (excluding goodwill), net	$	42,118		$	43,465

(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.

(3) Regulatory approval for Intuitrak in Japan acquired through an amendment with a distributor in the fourth quarter of 2014.

Amortization expense for intangible assets for the years ended December 31, 2015, 2014, and 2013 was $1.3 million, $0.6 million, and $0.3 million, respectively.

Estimated amortization expense for the five succeeding years and thereafter (which includes amortization of intangible assets which commenced in February 2013 with the commercial launch of the Nellix System in Europe) is as follows:



	Amortization Expense
2016	$	609
2017	1,724
2018	3,219
2019	4,414
2020	5,724
2021 and thereafter	23,720
Total	$	39,410

(d) Marketable securities

Investments in held-to-maturity marketable securities, consist of the following at December 31, 2015 and December 31, 2014:



	December 31, 2015
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
Agency bonds	$	8,000	$	—	$	(20	)	$	7,980
Government securities	40,824		1		(33		)	40,792
Commercial paper	3,944		—		—			3,944
Total	$	52,768	$	1	$	(53	)	$	52,716



	December 31, 2014
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value

Asset backed securities	$	3,633	$	—	$	—		$	3,633
Corporate bonds	15,707		—		(8		)	$	15,699
Commercial paper	40,531		5		—			$	40,536
Total	$	59,871	$	5	$	(8	)	$	59,868

At December 31, 2015, the Company’s investments included 12 held-to-maturity debt securities in unrealized loss positions with a total unrealized loss of approximately $53,000 and a total fair market value of approximately $44.7 million. All investments with gross unrealized losses have been in unrealized loss positions for less than 10 months. The unrealized losses were caused by interest rate fluctuations. There was no change in the credit risk of the securities. The Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities before the expected recovery of their amortized cost bases. There were no realized gains or losses on the investments for year ended December 31, 2015. Investments of held-to-maturity securities all mature within less than 12 months with an average maturity of 7 months.

(e) Fair Value Measurements

The following fair value hierarchy table presents information about each major category of the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2015:



	Fair value measurement at reporting date using:
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
At December 31, 2015
Cash and cash equivalents	$	124,553	$	—	$	—	$	124,553
Contingently issuable common stock	$	—	$	—	$	14,700	$	14,700
At December 31, 2014
Cash and cash equivalents	$	26,798	$	—	$	—	$	26,798
Contingently issuable common stock	$	—	$	—	$	14,600	$	14,600

There were no remeasurements to fair value during the years ended December 31, 2015 and 2014 of financial assets and liabilities that are not measured at fair value on a recurring basis. There were no transfers between Level 1, Level 2, or Level 3 securities during the years ended December 31, 2015 and 2014.

(f) Instruments Not Recorded at Fair Value on a Recurring Basis

We measure the fair value of our Senior Notes carried at amortized cost quarterly for disclosure purposes. The estimated fair value of the Senior Notes is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. Based on the market prices, the fair value of our long-term debt was $207.9 million as of December 31, 2015 and $84.5 million as of December 31, 2014.

We measure the fair value of our held-to-maturity marketable securities carried at amortized cost quarterly for disclosure purposes. The fair value of certain marketable securities is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar instruments.