3. Inventories

Inventories as of September 30, 2018 and December 31, 2017 consist of the following (in thousands):


	September 30, 2018			December 31, 2017
Finished goods	$	11,799		$	13,737
Semi-finished goods and work-in-process		42,322			53,148
Raw materials		17,469			12,445
Materials in-transit		3,792			134
Less: inventory reserve		(3,850	)		(6,391	)

Inventories, net	$	71,532		$	73,073

Changes in inventory reserve for the three and nine months ended September 30, 2018 and 2017 are as follows (in thousands):


	Three Months Ended			Nine Months Ended			Three Months Ended			Nine Months Ended
	September 30, 2018						September 30, 2017
Beginning balance	$	(4,699	)	$	(6,391	)	$	(5,297	)	$	(7,177	)
Change in reserve
Inventory reserve charged to costs of sales		(980	)		(2,837	)		(2,084	)		(3,479	)
Sale of previously reserved inventory		1,208			1,681			816			3,380

		228			(1,156	)		(1,268	)		(99	)
Write off		656			3,497			433			1,584
Translation adjustments		(35	)		200			43			(397	)

Ending balance	$	(3,850	)	$	(3,850	)	$	(6,089	)	$	(6,089	)

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, work-in-process and raw materials. Write off of this reserve is recognized only when the related inventory has been disposed or scrapped.