Inventory

12 Months Ended

Dec. 31, 2020

Inventory is valued at average cost or net realizable value, whichever is lower. The Company’s components of inventory as of December 31, 2020 and 2019 are summarized in the following table:


	December 31,
	2020		2019
Finished goods	$	60,766	$	59,024
Contract assets	37,843		37,032
Work-in-process	5,143		3,728
Raw materials	12,708		18,677
Inventories - net	$	116,460	$	118,461

In accordance with adoption of ASU 2016-13, the Company evaluated and revised its policies relating to the allowance for credit losses as they pertain to contract assets, as these assets held in inventory will convert to trade receivables upon recognition of revenue for the contract to which they pertain.

In addition to contract-specific provisions for which reserves were historically established as a result of the Company’s contract review process, management also elected to implement a standard credit loss provision over any remaining contract assets considered to have a similar low risk of credit loss.

The development of these estimates is based on historic collection trends, accuracy of estimates within contract margin reporting, as well as the expectation that collection patterns, margin reporting, and bad debt expense will continue to adhere to patterns observed in recent years. These expectations were formed based on trends observed as well as current and expected future conditions. Management monitors and reviews the contributing factors to the Company’s reserve, and makes any appropriate revisions as they become necessary.