4. Inventories

Inventories as of December 31, 2014 and 2013 consist of the following:


	Year Ended December 31,
	2014			2013
Finished goods		40,404			43,734
Semi-finished goods and work-in-process		68,153			92,030
Raw materials		7,520			9,464
Materials in-transit and other		6,745			1,870
Less: inventory reserve		(47,488	)		(72,400	)

Inventories, net	$	75,334		$	74,698

Changes in inventory reserve for the years ended December 31, 2014 and 2013 are as follows:


	Year Ended December 31,
	2014			2013
Beginning balance	$	(72,400	)	$	(25,429	)
Change in reserve		(883	)		(48,015	)
Write off		23,765			3,086
Translation adjustments		2,030			(2,042	)

Ending balance	$	(47,488	)	$	(72,400	)

Inventory reserve represents the Company’s best estimate in value lost due to excessive inventory level, physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Inventory reserve relates to inventory items including finished goods, semi-finished goods and work-in-process. Write off of this reserve is recognized only when the related inventory has been disposed or scrapped.