Inventories, net

9 Months Ended

Sep. 30, 2018

Note 7. Inventories, net

The components of inventories are as follows:


	September 30,		December 31,
	2018		2017
	(in thousands)
Raw materials	$	91,782	$	82,313
Work in process		23,849		31,651
Finished goods (completed systems)		8,377		6,580
Inventories, net	$	124,008	$	120,544

When recorded, inventory reserves reduce the carrying value of inventories to their net realizable value. The Company establishes inventory reserves when conditions exist that indicate inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for the Company’s products or market conditions. The Company regularly evaluates the ability to realize the value of inventories based on a combination of factors including the following: forecasted sales or usage, estimated product end of life dates, estimated current and future market value and new product introductions. Purchasing and usage alternatives are also explored to mitigate inventory exposure.