Annual report pursuant to Section 13 and 15(d)

Inventory, net

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Inventory, net
12 Months Ended
Dec. 31, 2011
Inventory [Abstract]  
Inventory
(5) Inventory, net

Inventory consists of finished goods, refurbished goods, chip sets and other raw material components used in manufacturing radios. Inventory is stated at the lower of cost, determined on a first-in, first-out basis, or market. We record an estimated allowance for inventory that is considered slow moving, obsolete or whose carrying value is in excess of net realizable value. The provision related to products purchased for resale in our direct to consumer distribution channel and components held for resale by us is reported as a component of Cost of equipment in our consolidated statements of operations. The provision related to inventory consumed in our OEM and retail distribution channel is reported as a component of Subscriber acquisition costs in our consolidated statements of operations.

Inventory, net, consists of the following:

 

 

                 
    December 31,
2011
    December 31,
2010
 

Raw materials

  $ 24,134     $ 18,181  

Finished goods

    28,007       24,492  

Allowance for obsolescence

    (15,430     (20,755
   

 

 

   

 

 

 

Total inventory, net

  $ 36,711     $ 21,918