Inventories, Net And Deferred Preservation Costs

9 Months Ended

Sep. 30, 2021

Inventories, Net And Deferred Preservation Costs [Abstract]

Inventories, Net And Deferred Preservation Costs

7. Inventories, net and Deferred Preservation Costs 

Inventories at September 30, 2021 and December 31, 2020 were comprised of the following (in thousands): 

	September 30,		December 31,
	2021		2020
Raw materials and supplies	$	34,005	$	33,625
Work-in-process		12,438		6,318
Finished goods		31,876		33,095
Total inventories, net	$	78,319	$	73,038

To facilitate product usage, we maintain consignment inventory of our On-X heart valves at domestic hospital locations and On-X heart valves, JOTEC, and AMDS products at international hospital locations. We retain title and control over this consignment inventory until the device is implanted, at which time we invoice the hospital and recognize revenue. As of September 30, 2021 we had $14.7 million in consignment inventory, with approximately 41% in domestic locations and 59% in international locations. As of December 31, 2020 we had $11.9 million in consignment inventory, with approximately 47% in domestic locations and 53% in international locations.

Total deferred preservation costs were $42.6 million and $36.5 million as of September 30, 2021 and December 31, 2020, respectively.

Inventory and deferred preservation costs obsolescence reserves were $2.8 million and $3.5 million as of September 30, 2021 and December 31, 2020, respectively.