3. Inventories

Inventories as of June 30, 2016 and December 31, 2015 consist of the following:


	June 30, 2016			December 31, 2015
Finished goods	$	21,528			18,427
Semi-finished goods and work-in-process		55,396			47,131
Raw materials		6,692			5,987
Materials in-transit		1,820			2,107
Less: inventory reserve		(14,997	)		(16,033	)

Inventories, net	$	70,439		$	57,619


	Three Months Ended			Six Months Ended			Three Months Ended			Six Months Ended
	June 30, 2016						June 30, 2015
Beginning balance	$	(17,246	)	$	(16,033	)	$	(41,818	)	$	(47,488	)
Change in reserve		547			(1,181	)		(4,977	)		(5,864	)
Write off		1,526			2,297			14,912			21,240
Translation adjustments		176			(80	)		522			751

Ending balance	$	(14,997	)	$	(14,997	)	$	(31,361	)	$	(31,361	)

Inventory reserve represents the Company’s best estimate in value lost due to excessive inventory level, physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Inventory reserve relates to inventory items including finished goods, semi-finished goods and work-in-process. Write off of this reserve is recognized only when the related inventory has been disposed or scrapped.