Inventory

9 Months Ended

Sep. 30, 2023

Inventory Disclosure [Abstract]

Inventory

7. INVENTORY

Inventory consisted of the following:

	As of		As of
(In thousands)	September 30, 2023		December 31, 2022
Raw materials	$	156,287	$	186,346
Work in process		15,648		12,087
Finished goods		202,036		229,098
Total inventory, net	$	373,971	$	427,531

Inventory reserves are established for estimated excess and obsolete inventory equal to the difference between the cost of the inventory and the estimated net realizable value of the inventory based on estimated reserve percentages, which considers historical usage, known trends, inventory age and market conditions. As of September 30, 2023 and December 31, 2022, inventory reserves were $86.3 million and $57.0 million, respectively.

In connection with the Company’s restructuring efforts, during the quarter ended September 30, 2023, management determined that there would be a discontinuation of product lines in the Network solutions segment and, as a result, wrote-down related inventories of $21.0 million and is included in cost of revenue in the Condensed Consolidated Statements of Loss. There was no write-down of inventory during the three and nine months ended September 30, 2022.