INVENTORIES

12 Months Ended

Sep. 30, 2011

INVENTORIES

INVENTORIES

NOTE 6—INVENTORIES

Significant components of inventories are as follows:

September 30,	2011			2010
	(in thousands)
Work in process and inventoried costs under long-term contracts	$	70,225		$	71,696
Customer advances	(34,582		)	(41,575		)
Materials and purchased parts	1,086			2,699
	$	36,729		$	32,820

At September 30, 2011, work in process and inventoried costs under long-term contracts includes approximately $1.2 million in costs incurred outside the scope of work or in advance of a contract award, compared to $0.1 million as of September 30, 2010. We believe it is probable that we will recover these costs, plus a profit margin, under contract change orders or awards within the next year.

Costs we incur for certain government contracts include general and administrative costs as allowed by government cost accounting standards. The amounts remaining in inventory at September 30, 2011 and 2010 were $6.2 million and $4.2 million respectively.