Balance Sheet Details

12 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Details

4. Balance Sheet Details

Inventories

Inventories consist of the following (in thousands):

	December 31,
	2023		2022
Raw materials	$	23,394	$	13,928
Work-in-process		950		3,032
Finished goods		112,498		84,561
Inventories	$	136,842	$	101,521

Property and Equipment, net

Property and equipment, net consist of the following (in thousands, except as indicated):

	Useful Life	December 31,
	(in years)	2023			2022
Surgical instruments	4	$	224,357		$	158,906
Machinery and equipment	7		11,633			9,502
Computer equipment	3		5,778			4,753
Office furniture and equipment	5		6,225			4,760
Leasehold improvements	various		3,986			2,965
Construction in progress	n/a		24,732			15,360
			276,711			196,246
Less: accumulated depreciation			(126,876	)		(94,294	)
Property and equipment, net		$	149,835		$	101,952

Total depreciation expense was $40.9 million, $31.0 million and $20.3 million for the years ended December 31, 2023, 2022 and 2021 respectively. At December 31, 2023 and 2022, assets recorded under financing leases of $1.1 million and $0.4 million, respectively, were included in the property and equipment, net, balance. Amortization of assets under financing leases is included in depreciation expense.

Goodwill

The change in the carrying amount of goodwill during the year ended December 31, 2023 included the following (in thousands):

December 31, 2022	$	47,367
Goodwill acquired during the year		24,582
Foreign currency fluctuation		1,054
December 31, 2023	$	73,003

Intangible Assets, net

Intangible assets, net consist of the following (in thousands, except as indicated):

	Remaining Weighted Avg. Useful Life	Gross		Accumulated			Intangible
December 31, 2023:	(in years)	Amount		Amortization			Assets, net
Developed product technology	6	$	106,782	$	(26,560	)	$	80,222
Trademarks and trade names	7		5,588		(1,561	)		4,027
Customer relationships	3		14,504		(8,692	)		5,812
Distribution network	1		2,413		(2,242	)		171
Total amortized intangible assets			129,287		(39,055	)		90,232
Software in development	n/a		7,934		—			7,934
In-process research and development	n/a		4,285		—			4,285
Total intangible assets		$	141,506	$	(39,055	)	$	102,451
		.
	Remaining Weighted Avg. Useful Life	Gross		Accumulated			Intangible
December 31, 2022:	(in years)	Amount		Amortization			Assets, net
Developed product technology	7	$	75,896	$	(13,420	)	$	62,476
Trademarks and trade names	8		5,421		(987	)		4,434
Customer relationships	4		14,240		(6,906	)		7,334
Distribution network	2		2,413		(2,041	)		372
Total amortized intangible assets			97,970		(23,354	)		74,616
Software in development	n/a		2,503					2,503
In-process research and development	n/a		5,662					5,662
Total intangible assets		$	106,135	$	(23,354	)	$	82,781

During the year ended December 31, 2023, in connection with the Company's acquisition of Valence, as further described in Note 2, the Company recorded additions to developed product technology and goodwill in the amount of $26.9 million and $24.6 million, respectively. The intangible asset acquired will be amortized on a straight-line basis over a useful life of seven years.

Total expense related to amortization of intangible assets was $15.2 million, $10.2 million and $6.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. Software in development assets begin amortizing when the projects are complete and the assets are ready for their intended use. In-process research and development assets and software in development assets both begin amortizing when the related products reach full commercial launch or are approved and ready for their intended use.

Future amortization expense related to intangible assets as of December 31, 2023 is as follows (in thousands):

Year Ending December 31,
2024	$	16,699
2025		15,211
2026		15,211
2027		12,989
2028		11,057
Thereafter		19,065
Total	$	90,232

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):

	December 31,
	2023		2022
Payroll and payroll related	$	29,207	$	19,764
Commissions and sales milestones		21,414		17,444
Accrued legal expenses		10,994		8,345
Royalties		7,968		4,758
Administration fees		2,732		1,912
Inventory in-transit		2,251		3,548
Other taxes payable		1,985		1,955
Interest		1,753		1,122
Professional fees		1,384		1,238
Orthotec litigation settlement obligation		—		3,968
Debt issuance costs		—		2,690
Other		8,024		5,638
Total accrued expenses and other current liabilities	$	87,712	$	72,382

Other Long-Term Liabilities

Other long-term liabilities consist of the following (in thousands):

	December 31,
	2023		2022
Income tax-related liabilities	$	5,838	$	6,526
Contract liabilities		2,561		3,047
Royalties		1,065		5,739
Other		1,739		1,777
Other long-term liabilities	$	11,203	$	17,089