Inventories, Net and Significant Supplier(s) (Tables)

9 Months Ended

Sep. 30, 2015

Inventories, net were as follows:



(In thousands)	September 30, 2015			December 31, 2014
Raw materials	$	29,472		$	24,763
Components	14,483			16,170
Work in process	4,667			2,622
Finished goods	66,952			56,458
Reserve for excess and obsolete inventory	(2,576		)	(2,539		)
Inventories, net	$	112,998		$	97,474

Schedule of Reserve for Excess and Obsolete Inventory

Changes in the reserve for excess and obsolete inventory were as follows:



(In thousands)	Nine Months Ended September 30,
(In thousands)	2015			2014
Balance at beginning of period	$	2,539		$	2,714
Additions charged to costs and expenses ⁽¹⁾	2,012			2,141
Sell through ⁽²⁾	(774		)	(728		)
Write-offs/FX effects	(1,201		)	(1,862		)
Balance at end of period	$	2,576		$	2,265


⁽¹⁾	The additions charged to costs and expenses do not include inventory directly written-off that was scrapped during production totaling $0.2 million and $0.2 million for the nine months ended September 30, 2015 and 2014, respectively. These amounts are production waste and are not included in management's reserve for excess and obsolete inventory.


⁽²⁾	These amounts represent the reduction in reserves associated with inventory items that were sold during the period.

Schedule of Related Party Transactions

We purchase certain printed circuit board assemblies from a related party supplier. The supplier is considered a related party for financial reporting purposes because our Senior Vice President of Manufacturing owns 40% of this vendor. Inventory purchases from this supplier were as follows:



	Three Months Ended September 30,
	2015				2014
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Related party supplier	$	2,115	2.3	%	$	2,372	3.0	%



	Nine Months Ended September 30,
	2015				2014
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Related party supplier	$	6,566	2.6	%	$	6,602	3.0	%

Total accounts payable to this supplier were as follows:



	September 30, 2015				December 31, 2014
	$ (thousands)		% of Accounts Payable		$ (thousands)		% of Accounts Payable
Related party supplier	$	2,142	2.4	%	$	2,378	3.4	%