INVENTORIES

At September 30, 2013 and December 31, 2012, inventories consisted of the following (in thousands):



	September 30, 2013		December 31, 2012
Raw materials	$	10,415	$	11,167
Work-in-process	27,309		35,562
Finished goods	33,318		37,734
Total	$	71,042	$	84,463

Short-term portion	$	62,665	$	72,691
Long-term portion	6,357		11,772

Inventory at September 30, 2013 includes unamortized fair value step-up in basis of $7.6 million as a result of the Acquisition that will be fully amortized by June 30, 2014. Amortization expense on the fair value step-up during the nine months ended September 30, 2013 was $7.4 million.

Included in the balance as of September 30, 2013 was the Company's Anatrace inventory with a carrying value of $2.0 million that was reclassified to held-for-sale on the Company's Condensed Consolidated Balance Sheet. Refer to Note 16. "Subsequent Events" for further details regarding the sale of Anatrace inventory.