3. Select Condensed Consolidated Balance Sheet Details

Accounts Receivable, net

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

	March 31, 2017			December 31, 2016
Accounts receivable	$	15,190		$	19,870
Allowance for doubtful accounts		(978	)		(1,358	)
Accounts receivable, net	$	14,212		$	18,512

Inventories, net

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

	March 31, 2017			December 31, 2016
Raw materials	$	5,664		$	7,301
Work-in-process		969			823
Finished goods		38,538			38,469
		45,171			46,593
Less reserve for excess and obsolete finished goods		(15,083	)		(16,500	)
Inventories, net	$	30,088		$	30,093

Property and Equipment, net

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

	Useful lives (in years)		March 31, 2017			December 31, 2016
Surgical instruments		4	$	54,364		$	53,095
Machinery and equipment		7		5,492			5,435
Computer equipment		3		3,512			3,511
Office furniture and equipment		5		2,707			2,695
Leasehold improvements	various			1,653			3,467
Construction in progress	n/a			-			445
				67,728			68,648
Less accumulated depreciation and amortization				(52,320	)		(53,572	)
Property and equipment, net			$	15,408		$	15,076

Total depreciation expense was $1.6 million and $2.3 million for the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017 and December 31, 2016, assets recorded under capital leases of $2.1 million were included in the machinery and equipment balance. Amortization of assets under capital leases is included in depreciation expense.

Intangible Assets, net

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

	Remaining Avg. Useful lives (in years)		March 31, 2017			December 31, 2016
Developed product technology		—	$	13,876		$	13,876
Intellectual property		—		1,004			1,004
License agreements		2		5,265			5,265
Trademarks and trade names		—		732			732
Customer-related		8		7,458			7,458
Distribution network		8		4,027			4,027
				32,362			32,362
Less accumulated amortization				(26,885	)		(26,651	)
Intangible assets, net			$	5,477		$	5,711

Total amortization expense was $0.2 million and $0.3 million for the three months ended March 31, 2017 and 2016, respectively.

Future amortization expense related to intangible assets as of March 31, 2017 is as follows (in thousands):

Year Ending December 31,
Remainder of 2017	$	702
2018		750
2019		688
2020		688
2021		688
Thereafter		1,961
	$	5,477

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	March 31, 2017		December 31, 2016
Commissions and sales milestones	$	4,156	$	4,202
Payroll and payroll related		2,419		2,384
Litigation settlements		4,400		4,400
Globus related accruals		767		3,830
Accrued professional fees		2,308		3,093
Royalties		1,350		1,347
Restructuring and severance accruals		1,619		1,328
Accrued taxes		419		404
Guaranteed collaboration compensation, current		4,661		2,228
Accrued interest		388		387
Other		3,686		3,986
Total accrued expenses	$	26,173	$	27,589