Inventory and Other Current Assets

9 Months Ended

Sep. 30, 2011

Inventory and Other Current Assets [Abstract]

Inventory and Other Current Assets

(6) Inventory and Other Current Assets

Inventory and other current assets includes approximately $70.8 million and $70.0 million of inventory at September 30, 2011 and December 31, 2010, respectively. Our inventory balance at September 30, 2011 consisted of approximately $30.3 million of finished goods, $1.2 million of work-in-process, $3.9 million of raw materials and $35.4 million of supplies and consumables. Our inventory balance at December 31, 2010 consisted of approximately $31.4 million of finished goods, $1.4 million of work-in-process, $2.2 million of raw materials and $35.0 million of supplies and consumables. Inventories are stated at the lower of cost or market. Cost is determined on an average cost basis for finished goods and work-in-process. Supplies and consumables consist principally of products used in our services provided to customers.

Additionally, inventory and other current assets include approximately $133.8 million and $146.9 million of costs incurred and estimated earnings in excess of billings on uncompleted contracts at September 30, 2011 and December 31, 2010, respectively. The Company follows the percentage-of-completion method of accounting for applicable contracts. Accordingly, income is recognized in the ratio that costs incurred bears to estimated total costs.

Adjustments to cost estimates are made periodically, and losses expected to be incurred on contracts in progress are charged to operations in the period such losses are determined.