Inventories, net

6 Months Ended

Jun. 30, 2021

Inventories, net

Inventories, net

Note 9.  Inventories, net

The components of inventories are as follows:

	June 30,		December 31,
	2021		2020
	(in thousands)
Raw materials	$	109,795	$	100,254
Work in process		40,233		33,867
Finished goods (completed systems)		42,293		26,955
Inventories, net	$	192,321	$	161,076

When recorded, inventory reserves reduce the carrying value of inventories to their net realizable value. We establish inventory reserves when conditions exist that indicate inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for the Company’s products or market conditions. We regularly evaluate 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.