Inventories, Net And Deferred Preservation Costs

3 Months Ended

Mar. 31, 2022

Inventories, Net And Deferred Preservation Costs [Abstract]

Inventories, Net And Deferred Preservation Costs

4. Inventories, net and Deferred Preservation Costs 

Inventories at March 31, 2022 and December 31, 2021 were comprised of the following (in thousands): 

	March 31,		December 31,
	2022		2021
Raw materials and supplies	$	35,075	$	35,780
Work-in-process		11,440		9,712
Finished goods		29,693		31,479
Total inventories, net	$	76,208	$	76,971

To facilitate product usage, we maintain consignment inventory of our On-X heart valves at domestic hospital locations and On-X heart valves and aortic stent grafts at international hospital locations. We retain title and control over this consignment inventory until the device is implanted, at which time we invoice the hospital and recognize revenue. As of March 31, 2022 we had $14.7 million in consignment inventory, with approximately 37% in domestic locations and 63% in international locations. As of December 31, 2021 we had $12.9 million in consignment inventory, with approximately 43% in domestic locations and 57% in international locations.

Total deferred preservation costs were $44.0 million and $42.9 million as of March 31, 2022 and December 31, 2021, respectively.

Inventory and deferred preservation costs obsolescence reserves were $2.7 million and $3.2 million as of March 31, 2022 and December 31, 2021, respectively.