INVENTORIES

Inventories are stated at the lower-of-cost (first-in, first-out) or market value. Cost elements included in inventory are material, labor, subcontract costs, and manufacturing overhead. As necessary, we record provisions and maintain reserves for excess, slow moving and obsolete inventory. To determine reserve amounts, we regularly review inventory quantities on hand and values, and compare them to estimates of future product demand, market conditions, production requirements and technological developments.

Inventories consist of the following at September 30, 2015 and December 31, 2014 and include reserves of $3,163 and $3,117, respectively:



	September 30, 2015		December 31, 2014
Raw materials	$	14,048	$	15,208
Work-in-process	10,530		11,528
Finished goods	16,342		12,782
Supplies	645		583

	$	41,565	$	40,101