Balance Sheet Details (Tables)

12 Months Ended

Dec. 31, 2012

Accounts Receivable

Accounts receivable consist of the following (in thousands):

	December 31,
	2012			2011
Accounts receivable	$	42,086		$	42,766
Allowance for doubtful accounts		(1,074	)		(1,055	)
Accounts receivables, net	$	41,012		$	41,711

Inventories

Inventories consist of the following (in thousands):

	December 31, 2012							December 31, 2011
	Gross		Reserve for excess and obsolete			Net		Gross		Reserve for excess and obsolete			Net
Raw materials	$	5,863	$	—		$	5,863	$	3,715	$	—		$	3,715
Work-in-process		1,350		—			1,350		2,088		—			2,088
Finished goods		59,864		(17,222	)		42,642		53,287		(13,174	)		40,113
Inventories	$	67,077	$	(17,222	)	$	49,855	$	59,090	$	(13,174	)	$	45,916

Property and Equipment

Property and equipment consist of the following (in thousands):

	Useful lives (in years)		December 31,
			2012			2011
Surgical instruments		4	$	56,712		$	52,690
Machinery and equipment		7		13,996			12,462
Computer equipment		5		3,269			3,013
Office furniture and equipment		5		3,528			3,578
Leasehold improvements		various		4,092			3,657
Building		39		64			71
Land		n/a		13			14
Construction in progress		n/a		1,045			634
				82,719			76,119
Less accumulated depreciation and amortization				(52,316	)		(44,643	)
Property and equipment, net			$	30,403		$	31,476

Intangible Assets

Intangibles assets consist of the following (in thousands):

	Useful lives (in years)		December 31,
			2012			2011
Developed product technology		5-8	$	23,253		$	22,875
Distribution rights		3		4,281			4,531
Intellectual property		5		1,004			1,004
License agreements		1-7		17,423			14,297
Core technology		10		4,940			3,489
In-process technology		Indefinite		—			1,680
Trademarks and trade names		5-9		3,796			3,671
Customer-related		15		19,221			15,476
Distribution network		10		3,906			1,614
Physician education programs		10		3,039			2,972
Supply agreement		10		225			225
				81,088			71,834
Less accumulated amortization				(34,232	)		(24,690	)
Intangible assets, net			$	46,856		$	47,144

Future Expected Amortization Expense Related to Intangible Assets

The future expected amortization expense related to intangible assets as of December 31, 2012 is as follows (in thousands):

Year Ending December 31,
2013	$	10,217
2014		6,300
2015		5,802
2016		5,457
2017		4,993
Thereafter		14,087
Total	$	46,856

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	December 31,
	2012		2011
Legal	$	939	$	249
Accounting		847		1,033
Phygen purchase price payable		3,936		—
Severance		749		—
Restructuring		—		123
Sales milestones		2,423		2,344
Accrued taxes payable		1,605		1,457
Deferred rent		1,483		1,746
Royalties		1,911		2,409
Commissions		5,371		4,120
Payroll and related		7,027		6,348
Litigation settlement		4,102		7,000
Other		8,097		5,754
Total accrued expenses	$	38,490	$	32,583

Schedule of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill from December 31, 2011 through December 31, 2012 were as follows (in thousands):

	December 31,
	2012		2011
Balance at December 31, 2011 and 2010	$	168,609	$	170,194
Acquisition of Phygen		10,124		—
Effect of foreign exchange rate on goodwill		2,105		(1,585	)
Balance at December 31,	$	180,838	$	168,609