INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out) and net realizable 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 June 30, 2017 and December 31, 2016 and include reserves of $3,015 and $4,226, respectively:



	June 30, 2017		December 31, 2016
Raw materials	$	14,073	$	10,926
Work-in-process	5,427		5,417
Finished goods	11,111		12,146
Supplies	282		344

	$	30,893	$	28,833