Inventory

12 Months Ended

Dec. 31, 2023

Inventory consisted of the following (in thousands):


	December 31,
	2023		2022
Raw materials	$	6,614	$	13,912
Semi-finished goods	7,392		21,410
Finished goods	27,690		1,361
Total inventory	$	41,696	$	36,683

Inventory write-downs as a result of excess, obsolescence, expiry, or other reasons, and losses on firm purchase commitments are recorded as a component of Cost of sales in the consolidated statements of operations. For the year ended December 31, 2023, inventory write-downs were $72.4 million and losses on firm purchase commitments were $73.5 million. In addition, for the year ended December 31, 2023, the Company recorded recoveries on firm purchase commitments of $40.2 million related primarily to negotiated reductions to previously recognized firm purchase commitments. Also, during the year ended December 31, 2023, the Company recorded an impairment charge of $6.1 million in Cost of sales related to an embedded lease agreement with a CMO for production capacity in excess of production needs. For the year ended December 31, 2022, inventory write-downs and losses on firm purchase commitments were $447.6 million and $155.9 million respectively. There were no inventory write-downs or losses on firm purchase commitments during 2021. Inventory reserves for write-downs are relieved when the inventory is disposed of through scrap or sale. Activity in the reserve for excess and obsolete inventory was as follows (in thousands):


	Year Ended December 31,
	2023		2022
Balance at January 1,	$	368,383	$	—
Charged to Cost of sales, including impairments	72,441		447,597
Other additions	65,049		—
Deductions	(239,814)		(79,214)
Balance at December 31,	$	266,059	$	368,383

Other additions include receipts of inventory previously recorded as losses on firm purchase commitments.