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Balance Sheet Account Detail
 12 Months Ended
Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Account Detail
Balance Sheet Account Detail
(a) Property and Equipment
Property and equipment consisted of the following:
 
December 31,
 
2017
 
2016
Production equipment, molds, and office furniture
$
12,118


$
11,714

Computer hardware and software
8,115


8,162

Leasehold improvements
15,499


15,495

Construction in progress (software and related implementation, production equipment, and leasehold improvements)
743


839

Property and equipment, at cost
36,475


36,210

Accumulated depreciation
(17,263
)

(12,945
)
Property and equipment, net
$
19,212


$
23,265


Depreciation expense for property and equipment for the years ended December 31, 2017, 2016, and 2015 was $5.0 million, $5.3 million, and $4.6 million, respectively.

(b) Inventories
Inventories consisted of the following:

December 31,

2017

2016
Raw materials
$
12,226


$
13,133

Work-in-process
7,736


10,139

Finished goods
25,191


17,888

Inventories
$
45,153


$
41,160


(c) Goodwill and Intangible Assets
The following table presents goodwill, indefinite lived intangible assets, finite lived intangible assets, and related accumulated amortization:
 
December 31,
 
2017

2016
Goodwill
$
120,927


$
120,711





Intangible assets:





Indefinite lived intangibles



Trademarks and trade names
$
2,708


$
2,708

In-process research and development
11,200


11,200





Finite lived intangibles



Developed technology
$
67,600


$
67,600

Accumulated amortization
(7,167
)

(3,810
)
 Developed technology, net
$
60,433


$
63,790





Customer relationship
$
7,500


$
7,500

Accumulated amortization
(1,438
)

(687
)
 Customer relationship, net
$
6,062


$
6,813





 Intangible assets (excluding goodwill), net
$
80,403


$
84,511


The change in the carrying amount of goodwill for the year ended December 31, 2017 is as follows (in thousands):
Balance at January 1, 2017


120,711

Foreign currency translation adjustment


216

Balance at December 31, 2017


$
120,927


Amortization expense for intangible assets for the years ended December 31, 2017, 2016, and 2015 was $4.1 million, $3.8 million, and $1.3 million, respectively.
Estimated amortization expense for the five succeeding years and thereafter is as follows:

Amortization Expense
2018
$
4,095

2019
4,300

2020
4,944

2021
7,020

2022
8,734

2023 and thereafter
37,402

Total
$
66,495











(d) Marketable securities

Investments in held-to-maturity marketable securities consist of the following at December 31, 2016:


December 31, 2016


Amortized
Cost

Gross
Unrealized
Gain
 
Gross
Unrealized
Loss
 
Fair Value
Agency bonds

$
6,488


$
2

 
$
—


$
6,490

Corporate bonds

10,513


—


(21
)

$
10,492

Commercial paper

3,987


—


—


3,987

Total

$
20,988


$
2


$
(21
)

$
20,969


At December 31, 2017, the Company had no marketable securities. There were no realized gains or losses on the investments for the year ended December 31, 2017.

(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, 2017 and 2016:


 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, 2017








Cash and cash equivalents

$
57,991


$
—


$
—


$
57,991

Restricted cash

$
2,608


$
—


$
—


$
2,608

Contingently issuable common stock

$
—


$
—


$
9,300


$
9,300

At December 31, 2016












Cash and cash equivalents

$
26,120


$
—


$
—


$
26,120

Restricted cash

$
2,001


$
—


$
—


$
2,001

Contingently issuable common stock

$
—


$
—


$
12,200


$
12,200



There were no remeasurements to fair value during the years ended December 31, 2017 and 2016 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, 2017 and 2016.
(f) Instruments Not Recorded at Fair Value on a Recurring Basis
The Company measures the fair value of their 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 Senior Notes was $131.2 million as of December 31, 2017 and $187.6 million as of December 31, 2016.

The Company measures the fair value of its Term Loan carried at amortized cost quarterly for disclosure purposes. The estimated fair value of the Term Loan is determined by Level 3 inputs and is based primarily on unobservable inputs that are not corroborated by market data. The fair value of the Company's Term Loan was $101.9 million as of December 31, 2017.

Due to its short-term nature, the Company believes that the carrying value of its revolving line of credit approximated its fair value at December 31, 2017.

The Company measures 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.