Balance Sheet Account Detail

6 Months Ended

Jun. 30, 2020

Balance Sheet Related Disclosures [Abstract]

(a) Property and Equipment

Property and equipment consisted of the following:



	June 30, 2020			December 31, 2019
Production equipment, molds and office furniture	$	10,937		$	10,844
Computer hardware and software	7,907			7,897
Leasehold improvements	15,594			15,594
Construction in progress (software and related implementation, production equipment and leasehold improvements)	684			795
Property and equipment, at cost	35,122			35,130
Accumulated depreciation	(23,284		)	(21,978		)
Property and equipment, net	$	11,838		$	13,152

Depreciation expense for property and equipment for the three months ended June 30, 2020 and 2019 was $0.6 million and $0.9 million, respectively. For the six months ended June 30, 2020 and 2019, depreciation expense for property and equipment was $1.3 million and $1.8 million, respectively.

(b) Inventories

Inventories consisted of the following:



	June 30, 2020		December 31, 2019
Raw materials	$	5,480	$	5,362
Work-in-process	4,916		4,132
Finished goods	15,512		16,911
Total Inventories	$	25,908	$	26,405

The change in the carrying amount of goodwill for the six months ended June 30, 2020 was as follows:



Balance at December 31, 2019	$	120,814
Foreign currency translation adjustment	2
Balance at June 30, 2020	$	120,816

Other intangible assets consisted of the following:



	June 30, 2020							December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Indefinite-lived intangible assets:
Trademarks and trade names	$	2,708	N/A			$	2,708	$	2,708	N/A			$	2,708
In-process research and development	$	11,200	N/A			11,200		11,200		N/A			11,200
Total indefinite-lived intangible assets	13,908					13,908		13,908					13,908
Finite-lived intangible assets:
Developed technology	67,600		(14,647		)	52,953		67,600		(13,467		)	54,133
Customer relationships	7,500		(3,313		)	4,187		7,500		(2,938		)	4,562
Total finite-lived intangible assets	75,100		(17,960		)	57,140		75,100		(16,405		)	58,695
Other intangible assets, net	$	89,008	$	(17,960	)	$	71,048	$	89,008	$	(16,405	)	$	72,603

Amortization expense for intangible assets for the three months ended June 30, 2020 and 2019 was $1.0 million and $0.9 million, respectively. For the six months ended June 30, 2020 and 2019, amortization expense for intangible assets was $1.6 million and $1.7 million, respectively.

Estimated amortization expense for the 5 succeeding years and thereafter is as follows:



Remainder of 2020	$	1,629
2021	3,276
2022	3,319
2023	3,378
2024	3,497
2025	3,724
Thereafter	38,317
Total	$	57,140

(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, 2020 and December 31, 2019:



		June 30, 2020								December 31, 2019
		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial liabilities:
Contingently issuable common stock	(a)	$	—	$	—	$	300	$	300	$	—	$	—	$	500	$	500
Derivative liabilities	(b)	$	—	$	—	—		—		—		—		940		940
Total financial liabilities		$	—	$	—	$	300	$	300	$	—	$	—	$	1,440	$	1,440

(a) See Note 10 for additional details.

(b) See Note 7 for additional details.

Changes in the fair value of the Company’s Level 3 liabilities were as follows:



	Contingently issuable common stock (a)			Derivative liabilities (b)
Balance at December 31, 2019	$	500		$	940
Retirement due to debt extinguishment	—			(1,351		)
Additions	—			12,916
Fair value adjustment	(200		)	(12,505		)
Balance at June 30, 2020	$	300		$	—

(a) See Note 10 for additional details.

(b) See Note 7 for additional details.

There were no transfers of financial assets or liabilities into or out of Level 3 during the six months ended June 30, 2020.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

The table below summarizes the carrying and fair values of the Company’s debt:



	June 30, 2020				December 31, 2019
	Carrying value		Fair value		Carrying value		Fair value
Term loan facility	$	143,301	$	115,765	$	141,274	$	131,892
Convertible notes	35,293		30,247		37,111		24,548
Other debt	14,093		11,169		4,281		1,416
	$	192,687	$	157,181	$	182,666	$	157,856

The fair values of the Company’s debt are determined using Level 3 inputs, with the exception of the 3.25% Senior Notes, which are determined using Level 2 inputs. See Note 7 for further details. The carrying value of the Company’s Revolving loan facility approximates fair value.