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Inventory

9 Months Ended

Sep. 30, 2024

6. INVENTORY

Inventory consisted of the following:


	As of		As of
(In thousands)	September 30, 2024		December 31, 2023
Raw materials	$	114,873	$	152,140
Work in process		10,942		17,239
Finished goods		157,111		192,916
Total inventory, net	$	282,926	$	362,295

Inventory reserves are established for estimated excess and obsolete inventory equal to the difference between the cost of the inventory and the estimated net realizable value of the inventory based on estimated reserve percentages, which considers historical usage, known trends, inventory age and market conditions.

During the three and nine months ended September 30, 2024, we renegotiated $0.3 million related to charges and an inventory write-down of $(0.3) million and $8.6 million, respectively, as a result of a strategy shift which included discontinuance of certain product lines in connection with the Business Efficiency Program of which $4.1 million relates to inventory write-downs and $4.5 million relates to other charges all of which are included in cost of revenue in the Condensed Consolidated Statements of Loss. In connection with the Company’s restructuring efforts, during the quarter ended September 30, 2023, management determined that there would be a discontinuation of product lines in the Network solutions segment and, as a result, wrote-down related inventories of $21.0 million, which is included in cost of revenue in the Condensed Consolidated Statements of Loss.