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Inventories (Notes)
 12 Months Ended
Dec. 31, 2012
Inventory Disclosure [Abstract]  
Inventory Disclosure
Inventories

Inventories consisted of the following (in thousands):
 
December 31,
2012
 
December 31,
2011
Raw materials
$
10,420

 
$
10,925

Work-in-process
605

 
599

Finished goods
11,245

 
20,127

 
22,270

 
31,651

Less: inventory valuation allowance
(2,199
)
 
(4,640
)
Inventories, net
$
20,071

 
$
27,011


 
December 31,
2012
 
December 31,
2011
Inventory deposit (A)
$
11,637

 
$
11,578

Less: inventory deposit valuation allowance
(2,801
)
 
(3,135
)
Inventory deposit, net
$
8,836

 
$
8,443


(A)
The Company is contractually obligated to reimburse its contract manufacturer 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 manufacturer 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 15 - 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 partner 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 $0.7 million and $3.8 million at December 31, 2012 and 2011.

The Company recorded the following charges associated with the valuation of inventory, inventory deposit and the adverse purchase commitment liability for the years ended December 31 (in thousands):
 
2012
 
2011
 
2010
Inventory, net
$
1,928

 
$
2,668

 
$
1,368

Inventory deposit, net
926

 
1,096

 
1,531

Adverse purchase commitments
31

 
733

 
318



The following is a summary of the change in the Company’s inventory valuation allowance for the years ended December 31 (in thousands):
 
2012
 
2011
Inventory valuation allowance, beginning of the year
$
4,640

 
$
3,547

Usage:
 
 
 
Inventory scrapped
(3,397
)
 
(1,767
)
Inventory utilized
(696
)
 
(933
)
Subtotal—usage
(4,093
)
 
(2,700
)
Write-downs of inventory valuation
1,928

 
2,668

Transfer from other liabilities (A)
29

 
1,398

Transfer to inventory deposit valuation allowance
(305
)
 
(273
)
Inventory valuation allowance, end of the year
$
2,199

 
$
4,640


 ____________________________
(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 11—Other Accrued and Other Long-Term Liabilities and Note 15—Commitments and Contingencies.)