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Accounts Receivable, net

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



	March 31, 2015			December 31, 2014
Accounts receivable	$	39,674		$	41,233
Allowance for doubtful accounts	(760		)	(793		)
Accounts receivable, net	$	38,914		$	40,440

Inventories, net

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



	March 31, 2015							December 31, 2014
	Gross		Reserve for excess and obsolete			Net		Gross		Reserve for excess and obsolete			Net
Raw materials	$	4,537	$	—		$	4,537	$	5,020	$	—		$	5,020
Work-in-process	828		—			828		1,032		—			1,032
Finished goods	56,795		(20,388		)	36,407		57,020		(21,325		)	35,695
Inventories	$	62,160	$	(20,388	)	$	41,772	$	63,072	$	(21,325	)	$	41,747

Property and Equipment, net

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



	Useful lives (in years)	March 31, 2015			December 31, 2014
Surgical instruments	4	$	63,139		$	62,872
Machinery and equipment	7	15,510			15,382
Computer equipment	3	3,252			3,180
Office furniture and equipment	5	3,750			3,789
Leasehold improvements	various	3,859			3,841
Building	39	66			65
Land	n/a	9			9
Construction in progress	n/a	1,791			1,320
		91,376			90,458
Less accumulated depreciation and amortization		(65,463		)	(64,418		)
Property and equipment, net		$	25,913		$	26,040

Total depreciation expense was $2.8 million and $3.3 million for the three months ended March 31, 2015 and 2014, respectively. At March 31, 2015, assets recorded under capital leases of $3.2 million were included in the machinery and equipment balance and $0.6 million were included in the construction in progress balance. At December 31, 2014, assets recorded under capital leases of $3.2 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)	March 31, 2015			December 31, 2014
Developed product technology	3-8	$	21,606		$	22,526
Distribution rights	3	2,114			2,095
Intellectual property	5	1,004			1,004
License agreements	1-7	16,716			16,716
Core technology	10	4,069			4,554
Trademarks and trade names	3-9	3,258			3,559
Customer-related	12-15	19,107			20,493
Distribution network	10-12	4,027			4,027
Physician education programs	10	2,505			2,802
Supply agreement	10	225			225
		74,631			78,001
Less accumulated amortization		(47,517		)	(47,742		)
Intangible assets, net		$	27,114		$	30,259

Total amortization expense was $1.4 million and $1.6 million for the three months ended March 31, 2015 and 2014, respectively.

Future amortization expense related to intangible assets as of March 31, 2015 is as follows (in thousands):



Year Ending December 31,
Remainder of 2015	$	3,964
2016	4,854
2017	4,556
2018	2,859
2019	2,675
Thereafter	8,206
	$	27,114

Accrued Expenses

Accrued expenses consist of the following (in thousands):



	March 31, 2015		December 31, 2014
Legal	$	572	$	967
Accounting	856		1,262
Severance	114		318
Restructuring	336		531
Sales milestones	118		107
Accrued taxes	906		1,344
Deferred rent	681		785
Royalties	2,094		2,129
Commissions	4,390		6,152
Payroll and related	6,454		8,291
Litigation settlements	6,397		7,393
Accrued interest	997		946
Other	6,465		5,168
Total accrued expenses	$	30,380	$	35,393

Goodwill

The changes in the carrying amount of goodwill from December 31, 2014 through March 31, 2015 are as follows (in thousands):




Balance at December 31, 2014	$	171,333
Effect of foreign exchange rate on goodwill	(9,631		)
Balance at March 31, 2015	$	161,702