INVENTORIES

12 Months Ended

Dec. 31, 2023

Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We write down the carrying value of inventory for estimated obsolescence by an amount equal to the difference between the cost of inventory and the estimated market value when warranted based on assumptions of future demand, market conditions, remaining shelf life, or product functionality. If actual market conditions or results of estimated functionality are less favorable than those we estimated, additional inventory write-downs may be required, which would have a negative effect on results of operations.

Unpaid inventory reflected within accounts payable in our consolidated balance sheets was $58.9 million, $59.4 million, and $64.4 million at December 31, 2023, 2022, and 2021, respectively. Instrument inventory transferred to property and equipment related to rental and operating-type reagent rental programs was $14.6 million, $17.4 million, $11.6 million during the years ended December 31, 2023, 2022, and 2021, respectively.

The components of inventories are as follows:


(in thousands)	December 31, 2023		December 31, 2022

Raw materials	$	106,392	$	92,796
Work-in-process	28,989		28,041
Finished goods	244,901		246,986
Inventories	$	380,282	$	367,823