Inventories

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are as follows (in thousands):

	December 31,
	2020		2019
Raw materials	$	7,190	$	4,339
Finished goods	15,705		24,569
Inventories	22,895		28,908
Less reserve for excess and obsolete inventory	(11,058)		(5,698)
Inventories, net	$	11,837	$	23,210

Changes in the reserve for excess and obsolete inventory are as follows (in thousands):

	2020		2019
Balance, beginning of year	$	5,698	$	2,117
Charged to provisions	12,261		5,659
Deductions for sales and disposals	(6,901)		(2,078)
Balance, end of the year	$	11,058	$	5,698

The Company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on an assessment of market values. Write-downs or write-offs of inventory are charged to cost of goods sold.

The provision for excess and obsolete inventory includes charges of $8.4 million for the CT segment and $3.9 million for the DA segment, offset by sales and disposals of $6.9 million, primarily related to terpene sales in 2020.

At December 31, 2020, the Company recognized an increase in the reserve for excess and obsolete inventory of $0.4 million due to terpene on hand exceeding anticipated usage. Also see Note 16, “Commitments and Contingencies,” for terpene purchase commitments at December 31, 2020. At December 31, 2019, the Company recorded a reserve for excess terpene of $4.4 million.