Inventory

12 Months Ended

Dec. 31, 2021

The components of inventory are summarized as follows:


	December 31, 2021		December 31, 2020
	(in thousands)
Raw materials	$	1,763	$	2,542
Work in process	62,635		64,076
Finished goods	14,661		19,691
Total inventory	$	79,059	$	86,309

Long-term inventory, which primarily consists of raw materials and work in process, is included in other assets in the Company’s consolidated balance sheets.


	December 31, 2021		December 31, 2020
	(in thousands)
Balance Sheet Classification:
Inventory	$	38,195	$	61,017
Other assets	40,864		25,292
Total inventory	$	79,059	$	86,309

Inventory amounts written down as a result of excess, obsolescence, scrap or other reasons and charged to cost of goods sold totaled $15.6 million, $20.1 million, and $7.1 million during the years ended December 31, 2021, 2020, and 2019 respectively. The decrease in inventory amounts written down for the year ended December 31, 2021 as compared to the year ended December 31, 2020 was primarily due to lower write-downs to inventory reserves related to a previously disclosed manufacturing quality issue related to Auryxia during 2020. In addition, there were $8.7 million, $11.4 million, and $17.1 million in related step-up charges during the years ended December 31, 2021, 2020, and 2019, respectively. During the fourth quarter of 2021, the Company recorded $12.5 million of receipts related to inventory previously identified as excess as a reduction to the excess purchase commitment liability.

If future sales of Auryxia are lower than expected, the Company may be required to write-down the value of such inventories. Inventory write-downs and losses on purchase commitments are recorded as a component of cost of sales in the consolidated statement of operations.