Inventories, net

9 Months Ended

Sep. 30, 2023

Inventories, net

Inventories, net

Note 9.  Inventories, net

The components of inventories are as follows:

	September 30,		December 31,
	2023		2022
	(in thousands)
Raw materials	$	226,601	$	187,313
Work in process		55,825		35,069
Finished goods (completed systems)		29,797		20,024
Inventories, net	$	312,223	$	242,406

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We establish inventory reserves when conditions exist that indicate inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for the Company’s products or market conditions.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.