Accounts Receivable and Inventories

Accounts receivable consist of the following:



(In thousands)	December 31 2016			December 31 2015
Trade accounts receivable	$	248,354		$	280,526
Less: Allowance for doubtful accounts	(11,800		)	(25,649		)
Trade accounts receivable, net	$	236,554		$	254,877

Other receivables (a)	$	21,053		$	30,395


(a)	Other receivables include insurance claim receivables, employee receivables, tax claim receivables and other miscellaneous receivables not included in Trade accounts receivable, net

The decrease in Allowance for doubtful accounts in 2016 is due to the write-off of a previously reserved accounts receivable balances.

The following table reflects the provision for doubtful accounts related to trade accounts receivable for the years ended December 31, 2016, 2015 and 2014:



	Years Ended December 31
(In thousands)	2016			2015		2014
Provision for doubtful accounts related to trade accounts receivable	$	(38	)	$	13,047	$	9,892

Inventories consist of the following:



(In thousands)	December 31 2016		December 31 2015
Finished goods	$	26,464	$	32,586
Work-in-process	22,815		30,959
Contracts-in-process	54,044		55,786
Raw materials and purchased parts	61,450		70,755
Stores and supplies	22,908		26,881
Total inventories	$	187,681	$	216,967
Valued at lower of cost or market:
LIFO basis	$	79,933	$	102,309
FIFO basis	64,742		64,760
Average cost basis	43,006		49,898
Total inventories	$	187,681	$	216,967

Inventories valued on the LIFO basis at December 31, 2016 and 2015 were approximately $33 million and $32 million, respectively, less than the amounts of such inventories valued at current costs. During 2016, as a result of reducing certain inventory quantities valued on a LIFO basis, net income (loss) decreased from that which would have been recorded under the FIFO basis of valuation by $1.3 million. During 2015 there was no significant impact on net income (loss) as a result of reducing certain inventory quantities valued on a LIFO basis. During 2014, as a result of reducing certain inventory quantities valued on the LIFO basis, net income (loss) decreased from that which would have been recorded under the FIFO basis of valuation by $0.1 million.

Contracts-in-process consist of the following:



(In thousands)	December 31 2016			December 31 2015
Contract costs accumulated to date	$	90,276		$	55,786
Estimated forward loss provisions for contracts-in-process (b)	(36,232		)	—
Contracts-in-process (c)	$	54,044		$	55,786


(b)	To the extent that the estimated forward loss provision exceeds accumulated contract costs it is included in Other current liabilities on the Consolidated Balance Sheets. At December 31, 2016 this amount totaled $6.7 million.


(c)	At December 31, 2016 and December 31, 2015, the Company has $101.1 million and $82.7 million, respectively, of customer advances related to contracts-in-process. These amounts are included in Advances on contracts on the Consolidated Balance Sheets.

During 2016, as a result of increased vendor costs, ongoing discussions with SBB, and increased estimates for commissioning, certification and testing costs, as well as expected settlements with SBB, the Company concluded it will have a loss on the contracts with SBB. The Company recognized an estimated forward loss provision related to the SBB contracts of

$45.1 million for the year ended December 31, 2016 in Costs of products sold on the Consolidated Statements of Operations. There was no estimated forward loss provision at December 31, 2015 or 2014. The estimated forward loss provision represents the Company's best estimate best on currently available information. It is possible that the Company's overall estimate of costs to complete these contracts may increase which would result in an additional estimated forward loss provision at such time, but the Company is unable to estimate any further possible loss or range of loss at December 31, 2016.

The Company recognized $0.2 million and $1.9 million of revenue for the contracts with SBB for the years ended

December 31, 2016 and 2015, respectively, under the percentage-of-completion (units-of-delivery) method. The Company recognized no revenue for the contract with SBB for the year ended December 31, 2014. These revenues did not have a material impact on the Company's gross margins or results of operations for these periods. The Company has not yet recognized any revenue associated with the major equipment deliveries under the contracts with SBB. The majority of the equipment deliveries and related revenue recognition under these contracts are expected in 2017 through 2020.