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Inventories, Net and Significant Supplier
6 Months Ended
Jun. 30, 2016
Inventory Disclosure [Abstract]  
Inventories, Net and Significant Supplier
Inventories, Net and Significant Supplier
Inventories, net were as follows:
(In thousands)
June 30, 2016
 
December 31, 2015

Raw materials
$
29,203

 
$
29,290

Components
13,592

 
12,228

Work in process
7,532

 
5,671

Finished goods
72,363

 
78,222

Reserve for excess and obsolete inventory
(3,549
)
 
(3,045
)
Inventories, net
$
119,141

 
$
122,366


 
Reserve for Excess and Obsolete Inventory
Changes in the reserve for excess and obsolete inventory were as follows:
(In thousands)
Six Months Ended June 30,
2016
 
2015
Balance at beginning of period
$
3,045

 
$
2,539

Additions charged to costs and expenses (1)
1,486

 
1,527

Sell through (2)
(537
)
 
(526
)
Write-offs/Foreign exchange effects
(445
)
 
(642
)
Balance at end of period
$
3,549

 
$
2,898


(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 $0.1 million for the six months ended June 30, 2016 and 2015, 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.
Significant Supplier
We purchase integrated circuits, components and finished goods from multiple sources. Texas Instruments provided $11.4 million, or 11.8%, of total inventory purchases during the three months ended June 30, 2016 and $19.9 million, or 11.3%, of total inventory purchases during the six months ended June 30, 2016.

Related Party Supplier
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 Strategic Operations owns 40% of this vendor. Inventory purchases from this supplier were as follows:
 
Three Months Ended June 30,
 
2016
 
2015
 
$ (thousands)
 
% of Total
Inventory Purchases
 
$ (thousands)
 
% of Total
Inventory Purchases
Related party supplier
$
1,977

 
2.0
%
 
$
2,357

 
2.7
%
 
Six Months Ended June 30,
 
2016
 
2015
 
$ (thousands)
 
% of Total
Inventory Purchases
 
$ (thousands)
 
% of Total
Inventory Purchases
Related party supplier
$
3,589

 
2.0
%
 
$
4,451

 
2.8
%
Total accounts payable to this supplier were as follows:
 
June 30, 2016
 
December 31, 2015
 
$ (thousands)
 
% of Accounts Payable
 
$ (thousands)
 
% of Accounts Payable
Related party supplier
$
2,053

 
2.1
%
 
$
2,361

 
2.5
%

Our payment terms and pricing with this supplier are consistent with the terms offered by other suppliers in the ordinary course of business. The accounting policies that we apply to our transactions with our related party supplier are consistent with those applied in transactions with independent third parties. Corporate management routinely monitors purchases from our related party supplier to ensure these purchases remain consistent with our business objectives.