3. Inventories

Inventories as of June 30, 2017 and December 31, 2016 consist of the following (in thousands):

 

		June 30, 2017				December 31, 2016
Finished goods		$	11,699			$	7,867
Semi-finished goods and work-in-process			42,157				46,653
Raw materials			8,091				7,846
Materials in-transit			1,493				1,859
Less: inventory reserve			(5,297	)			(7,177	)
Inventories, net		$	58,143			$	57,048

Changes in inventory reserve for the three and six months ended June 30, 2017 and 2016 are as follows (in thousands):

 

		Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
		June 30, 2017								June 30, 2016
Beginning balance		$	(7,966	)		$	(7,177	)		$	(17,246	)		$	(16,033	)
Change in reserve			1,544				1,159				547				(1,181	)
Write off			983				1,150				1,526				2,297
Translation adjustments			142				(429	)			176				(80	)
Ending balance		$	(5,297	)		$	(5,297	)		$	(14,997	)		$	(14,997	)

Inventory reserve represents the Company’s best estimate in value lost due to excessive inventory level, physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Inventory reserve relates to inventory items including finished goods, semi-finished goods and work-in-process. Write off of this reserve is recognized only when the related inventory has been disposed or scrapped.