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Inventories
 12 Months Ended
Dec. 31, 2011
Inventory, Net [Abstract]  
Inventory Disclosure
Inventories

Inventories consisted of the following (in thousands):
 
December 31,
2011
 
December 31,
2010
Raw materials
$
10,925

 
$
8,204

Work-in-process
599

 
—

Finished goods
20,127

 
10,521

 
31,651

 
18,725

Less: inventory valuation allowance
(4,640
)
 
(3,547
)
Inventories, net
$
27,011

 
$
15,178

 
December 31,
2011
 
December 31,
2010
Inventory deposit (A)
$
11,578

 
$
8,468

Less: inventory deposit valuation allowance
(3,135
)
 
(2,274
)
Inventory deposit, net
$
8,443

 
$
6,194

 
(A)
The Company is contractually obligated to reimburse its contract manufacturers for the cost of excess inventory that has been purchased as a result of the Company's forecasted demand when there is no alternative use. The Company's inventory deposit represents a cash deposit paid to its contract manufacturers for inventory in excess of near term demand. The deposit is recorded net of adverse purchase commitment liabilities, and therefore the net balance of the deposit represents inventory the Company believes will be utilized. The deposit will be applied against future adverse purchase commitments owed to the Company's contract manufacturers or reduced based on the usage of inventory. See Note 14 - Commitments and Contingencies for additional information regarding the Company's adverse purchase commitment liability.

Consigned inventory is held at third-party locations, including the Company's contract manufacturing partners and customers. The Company retains title to the inventory until purchased by the third-party. Consigned inventory, consisting of raw materials and finished goods, was $3.8 million and $3.0 million at December 31, 2011 and 2010.

The Company recorded the following charges associated with the valuation of inventory, inventory deposit and the adverse purchase commitment liability (in thousands):
 
For the Years Ended
 
December 31,
 
2011
 
2010
 
2009
Inventory, net
$
2,668

 
$
1,368

 
$
2,995

Inventory deposit, net
1,096

 
1,531

 
898

Adverse purchase commitments
733

 
318

 
648


The following is a summary of the change in the Company’s inventory valuation allowance (in thousands):
 
For the Years Ended
December 31,
 
2011
 
2010
Inventory valuation allowance, beginning of the year
$
3,547

 
$
4,792

Usage:

 

Inventory scrapped
(1,767
)
 
(1,625
)
Inventory utilized
(933
)
 
(1,225
)
Subtotal—usage
(2,700
)
 
(2,850
)
Write-downs of inventory valuation
2,668

 
2,899

Transfer from other liabilities (A)
1,398

 
178

Transfer to inventory deposit valuation allowance
(273
)
 
(1,376
)
Inventory revaluation for standard cost changes
—

 
(96
)
Inventory valuation allowance, end of the year
$
4,640

 
$
3,547

 ____________________________
(A)
Transfer from other liabilities is related to obsolete inventory purchased from contract manufacturers during the year which was previously reserved for as an adverse purchase commitment. (Note 10—Other Accrued and Other Long-Term Liabilities and Note 14—Commitments and Contingencies.)