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Accounts Receivable, net

Accounts receivable, net consist of the following (in thousands):



	September 30, 2014			December 31, 2013
Accounts receivable	$	41,062		$	42,443
Allowance for doubtful accounts	(1,009		)	(1,048		)
Accounts receivable, net	$	40,053		$	41,395

Inventories, net

Inventories, net consist of the following (in thousands):



	September 30, 2014							December 31, 2013
	Gross		Reserve for excess and obsolete			Net		Gross		Reserve for excess and obsolete			Net
Raw materials	$	4,526	$	—		$	4,526	$	4,375	$	—		$	4,375
Work-in-process	1,017		—			1,017		531		—			531
Finished goods	57,317		(20,874		)	36,443		60,979		(23,946		)	37,033
Inventories	$	62,860	$	(20,874	)	$	41,986	$	65,885	$	(23,946	)	$	41,939

Property and Equipment, net

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



	Useful lives (in years)	September 30, 2014			December 31, 2013
Surgical instruments	4	$	63,019		$	62,636
Machinery and equipment	7	15,461			14,692
Computer equipment	3	3,193			3,357
Office furniture and equipment	5	3,823			3,703
Leasehold improvements	various	3,719			4,161
Building	39	72			52
Land	n/a	10			10
Construction in progress	n/a	1,016			1,228
		90,313			89,839
Less accumulated depreciation and amortization		(63,803		)	(61,809		)
Property and equipment, net		$	26,510		$	28,030

Total depreciation expense was $2.9 million and $3.7 million for the three months ended September 30, 2014 and 2013, respectively. Total depreciation expense was $9.2 million and $10.9 million for the nine months ended September 30, 2014 and 2013, respectively. At September 30, 2014, assets recorded under capital leases of $3.2 million were included in the machinery and equipment balance. At December 31, 2013, assets recorded under capital leases of $1.8 million were included in the machinery and equipment balance and $0.6 million were included in the construction in progress balance. Amortization of assets under capital leases was included in depreciation expense.

Intangible Assets, net

Intangible assets, net consist of the following (in thousands except for useful lives):



	Useful lives (in years)	September 30, 2014			December 31, 2013
Developed product technology	3-8	$	22,880		$	23,633
Distribution rights	3	2,270			2,343
Intellectual property	5	1,004			1,004
License agreements	1-7	16,716			17,686
Core technology	10	4,740			5,137
Trademarks and trade names	3-9	3,674			3,920
Customer-related	12-15	21,026			22,161
Distribution network	10-12	4,027			4,027
Physician education programs	10	2,916			3,160
Supply agreement	10	225			225
		79,478			83,296
Less accumulated amortization		(47,050		)	(44,232		)
Intangible assets, net		$	32,428		$	39,064

Total amortization expense was $1.6 million and $3.7 million for the three months ended September 30, 2014 and 2013, respectively. Total amortization expense was $4.8 million and $9.1 million for the nine months ended September 30, 2014 and 2013, respectively.

Future amortization expense related to intangible assets as of September 30, 2014 is as follows (in thousands):



Year Ending December 31,
Remainder of 2014	$	1,493
2015	5,792
2016	5,281
2017	4,984
2018	3,127
Thereafter	11,751
	$	32,428

Accrued Expenses

Accrued expenses consist of the following (in thousands):



	September 30, 2014		December 31, 2013
Legal	$	570	$	2,139
Accounting	949		928
Severance	459		297
Restructuring	730		9,170
Sales milestones	96		1,828
Accrued taxes	811		1,120
Deferred rent	884		1,163
Royalties	2,443		2,347
Commissions	5,275		6,180
Payroll and related	8,013		9,369
Litigation settlements	8,386		22,600
Accrued interest	887		416
Other	5,492		5,439
Total accrued expenses	$	34,995	$	62,996

Goodwill

The changes in the carrying amount of goodwill from December 31, 2013 through September 30, 2014 are as follows (in thousands):




Balance at December 31, 2013	$	183,004
Effect of foreign exchange rate on goodwill	(7,915		)
Balance at September 30, 2014	$	175,089