Balance Sheet Account Detail

(a) Property and Equipment

Property and equipment consisted of the following:



	June 30, 2018			December 31, 2017
Production equipment, molds, and office furniture	$	12,086		$	12,118
Computer hardware and software	8,274			8,115
Leasehold improvements	15,535			15,499
Construction in progress (software and related implementation, production equipment, and leasehold improvements)	941			743
Property and equipment, at cost	$	36,836		$	36,475
Accumulated depreciation	(19,133		)	(17,263		)
Property and equipment, net	$	17,703		$	19,212

Depreciation expense for property and equipment for the three months ended June 30, 2018 and 2017 was $1.0 million and $1.3 million, respectively. For the six months ended June 30, 2018 and 2017, depreciation expense for property and equipment was $1.9 million and $2.7 million, respectively.

(b) Inventories

Inventories consisted of the following:



	June 30, 2018		December 31, 2017
Raw materials	$	10,424	$	12,226
Work-in-process	6,758		7,736
Finished goods	25,618		25,191
Total Inventories	$	42,800	$	45,153

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



	June 30, 2018			December 31, 2017
Goodwill	$	120,883		$	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	(8,798		)	(7,167		)
Developed technology, net	$	58,802		$	60,433

Customer relationships	$	7,500		$	7,500
Accumulated amortization	(1,812		)	(1,438		)
Customer relationships, net	$	5,688		$	6,062

Intangible assets (excluding goodwill), net	$	78,398		$	80,403

The change in the carrying amount of goodwill for the six months ended June 30, 2018 is as follows (in thousands):



Balance at December 31, 2017	120,927
Foreign currency translation adjustment	(44		)
Balance at June 30, 2018	$	120,883

Amortization expense for intangible assets for the three months ended June 30, 2018 and 2017 was $1.0 million and $1.0 million, respectively. For the six months ended June 30, 2018 and 2017, amortization expense for intangible assets was $2.0 million and $1.9 million, respectively.

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



Remainder of 2018	$	2,006
2019	4,056
2020	4,179
2021	6,354
2022	8,894
2023 & Thereafter	39,001
Total	$	64,490

(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 June 30, 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 June 30, 2018
Cash and cash equivalents	$	35,629	$	—	$	—	$	35,629
Restricted cash	$	2,010	$	—	$	—	$	2,010
Contingently issuable common stock	$	—	$	—	$	10,000	$	10,000
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 six months ended June 30, 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 six months ended June 30, 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 $123.2 million as of June 30, 2018 and $131.2 million as of December 31, 2017.

The Company measures the fair value of its Term Loan with Deerfield Capital (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 $105.4 million as of June 30, 2018 and $101.9 million as of December 31, 2017.