Quarterly report pursuant to Section 13 or 15(d)

Inventory, net

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Inventory, net
9 Months Ended
Sep. 30, 2014
Inventory Disclosure [Abstract]  
Inventory, net
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 or market. We record an estimated allowance for inventory that is considered slow moving or 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 unaudited consolidated statements of comprehensive income. The provision related to inventory consumed in our OEM and retail distribution channel is reported as a component of Subscriber acquisition costs in our unaudited consolidated statements of comprehensive income.

Inventory, net, consists of the following:
 
September 30,
2014
 
December 31,
2013
Raw materials
$
11,978

 
$
12,358

Finished goods
23,375

 
15,723

Allowance for obsolescence
(11,003
)
 
(14,218
)
Total inventory, net
$
24,350

 
$
13,863