Balance Sheet Account Detail

(a) Property and Equipment

Property and equipment consisted of the following:



	March 31, 2018			December 31, 2017
Production equipment, molds, and office furniture	$	12,137		$	12,118
Computer hardware and software	8,151			8,115
Leasehold improvements	15,499			15,499
Construction in progress (software and related implementation, production equipment, and leasehold improvements)	1,080			743
Property and equipment, at cost	$	36,867		$	36,475
Accumulated depreciation	(18,269		)	(17,263		)
Property and equipment, net	$	18,598		$	19,212

Depreciation expense for property and equipment for the three months ended March 31, 2018 and 2017 was $1.0 million and $1.4 million, respectively.

(b) Inventories

Inventories consisted of the following:



	March 31, 2018		December 31, 2017
Raw materials	$	12,343	$	12,226
Work-in-process	7,489		7,736
Finished goods	25,977		25,191
Total Inventories	$	45,809	$	45,153

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



	March 31, 2018			December 31, 2017
Goodwill	$	120,977		$	120,927

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	(8,003		)	(7,167		)
Developed technology, net	$	59,597		$	60,433

Customer relationships	$	7,500		$	7,500
Accumulated amortization	(1,625		)	(1,438		)
Customer relationships, net	$	5,875		$	6,062

Intangible assets (excluding goodwill), net	$	79,380		$	80,403

The change in the carrying amount of goodwill for the three months ended March 31, 2018 is as follows (in thousands):



Balance at December 31, 2017	120,927
Foreign currency translation adjustment	50
Balance at March 31, 2018	$	120,977

Amortization expense for intangible assets for the three months ended March 31, 2018 and 2017 was $1.0 million and $0.9 million, respectively.

Estimated amortization expense for the five succeeding years and thereafter is as follows:



Remainder of 2018	$	3,071
2019	4,300
2020	4,945
2021	7,020
2022	8,734
2023 & Thereafter	37,402
Total	$	65,472

(d) 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 March 31, 2018 and December 31, 2017:



	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 March 31, 2018
Cash and cash equivalents	$	48,020	$	—	$	—	$	48,020
Restricted cash	$	2,067	$	—	$	—	$	2,067
Contingently issuable common stock	$	—	$	—	$	8,200	$	8,200
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

There were no re-measurements to fair value during the three months ended March 31, 2018 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 three months ended March 31, 2018.

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

The Company measures the fair value of its 2.25% Convertible Senior Notes due 2018 and 3.25% Convertible Senior Notes due 2020 (collectively, the “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 securities. Based on the market prices, the fair value of the Senior Notes was $128.0 million as of March 31, 2018 and $131.2 million as of December 31, 2017.

The Company measures the fair value of its Term Loan (see Note 6 of the Notes to the Condensed Consolidated Financial Statements) 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 $103.2 million as of March 31, 2018.