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Balance Sheet Components
 6 Months Ended
Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
4. Balance Sheet Components
Prepaid Expenses and Other Current Assets
The Company’s prepaid expenses and other current assets as of June 30, 2017 and December 31, 2016 were comprised of the following (in thousands):
 
 
June 30,
2017
 
December 31,
2016
Prepaid tax
 
$
1,505

 
$
4,656

Prepaid expenses
 
4,729

 
4,573

Other current assets
 
8,165

 
9,498

Prepaid expenses and other current assets
 
$
14,399

 
$
18,727





Marketable Investments
The Company’s marketable investments as of June 30, 2017 and December 31, 2016 were as follows (in thousands):
 
 
June 30, 2017
 
 
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Commercial paper
 
$
24,198

 
$
1

 
$
(3
)
 
$
24,196

U.S. Treasury
 
9,003

 
—

 
(6
)
 
8,997

U.S. agency and government sponsored securities
 
6,850

 
—

 
(13
)
 
6,837

U.S. states and municipalities
 
8,263

 
—

 
(7
)
 
8,256

Corporate bonds
 
93,851

 
35

 
(104
)
 
93,782

Total
 
$
142,165

 
$
36

 
$
(133
)
 
$
142,068

 
 
December 31, 2016
 
 
Amortized Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Commercial paper
 
$
4,237

 
$
1

 
$
—

 
$
4,238

U.S. Treasury
 
4,996

 
—

 
—

 
4,996

U.S. agency and government sponsored securities
 
8,803

 
3

 
(12
)
 
8,794

U.S. states and municipalities
 
27,429

 
1

 
(75
)
 
27,355

Corporate bonds
 
69,009

 
36

 
(120
)
 
68,925

Non-U.S. government debt securities
 
1,209

 
—

 
—

 
1,209

Total
 
$
115,683

 
$
41

 
$
(207
)
 
$
115,517


The following tables present the gross unrealized losses and the fair value for those marketable investments that were in an unrealized loss position for less than twelve months as of June 30, 2017 and December 31, 2016 (in thousands):
 
 
June 30, 2017
 
 
Fair Value
 
Gross Unrealized Losses
Commercial paper
 
$
19,769

 
$
(3
)
U.S. Treasury
 
8,997

 
(6
)
U.S. agency and government sponsored securities
 
6,837

 
(13
)
U.S. states and municipalities
 
8,256

 
(7
)
Corporate bonds
 
51,843

 
(104
)
Total
 
$
95,702

 
$
(133
)
 
 
December 31, 2016
 
 
Fair Value
 
Gross Unrealized Losses
U.S. agency and government sponsored securities
 
$
3,291

 
$
(12
)
U.S. states and municipalities
 
22,286

 
(75
)
Corporate bonds
 
29,748

 
(120
)
Total
 
$
55,325

 
$
(207
)

As of June 30, 2017 and December 31, 2016, there were no securities that had been in a loss position for more than twelve months.
The contractual maturities of the Company’s marketable investments as of June 30, 2017 and December 31, 2016 were as follows (in thousands):
 
 
June 30,
2017
 
December 31, 2016
 
 
Fair Value
 
Fair Value
Due in less than one year
 
$
121,290

 
$
71,051

Due in one to five years
 
20,778

 
44,466

Total
 
$
142,068

 
$
115,517


 Non-Marketable Equity Investments
In May 2017, the Company and an unrelated third-party formed a privately-held company, MVI Health Inc. (“MVI”), with each party holding 50% of the issued and outstanding equity of MVI. The Company accounted for its investment under the equity method and is not required to consolidate under the voting model. As of June 30, 2017, the Company determined that MVI was not a variable interest entity (“VIE”). The Company will reassess in subsequent periods whether MVI becomes a VIE due to changes in facts and circumstances, including changes to the sufficiency of the equity investment at risk, management and governance structure or capital structure. As of June 30, 2017, the carrying value of the non-marketable equity investment was approximately $4.9 million, representing the Company’s contributions to MVI offset by the Company’s share of equity method investee losses. The non-marketable equity method investment is included in other non-current assets on the condensed consolidated balance sheet. The Company reflects the equity method investee losses as a component of other expense, net, in the condensed consolidated statements of operations and comprehensive (loss) income. The Company held no non-marketable equity investments in 2016.
Inventories
The components of inventories as of June 30, 2017 and December 31, 2016 consisted of the following (in thousands):
 
 
June 30,
2017
 
December 31,
2016
Raw materials
 
$
11,068

 
$
11,367

Work in process
 
3,747

 
3,663

Finished goods
 
66,326

 
57,982

Inventories
 
$
81,141

 
$
73,012


Accrued Liabilities
The following table shows the components of accrued liabilities as of June 30, 2017 and December 31, 2016 (in thousands):
 
 
June 30,
2017
 
December 31,
2016
Payroll and employee-related cost
 
$
18,865

 
$
16,956

Sales return reserve
 
2,994

 
2,753

Preclinical and clinical trial cost
 
1,305

 
2,054

Royalty
 
1,165

 
802

Product warranty
 
1,037

 
1,254

Other accrued liabilities
 
7,811

 
7,871

Total accrued liabilities
 
$
33,177

 
$
31,690


The estimated product warranty accrual as of June 30, 2017 and December 31, 2016 was as follows (in thousands):
 
 
June 30,
2017
 
December 31,
2016
Balance at the beginning of the period
 
$
1,254

 
$
713

Accruals of warranties issued
 
142

 
1,176

Settlements of warranty claims
 
(359
)
 
(635
)
Balance at the end of the period
 
$
1,037

 
$
1,254