Note 6: Inventories

Inventories as of December 31, 2011 and 2010 consist of the following:


	2011			2010
Raw materials, including parts and subassemblies	$	202,542			163,192
Work-in-process		57,264			38,419
Finished goods		67,748			54,898
		327,554			256,509
Excess of FIFO costs over LIFO costs		(15,875	)		(15,024	)
Inventories, net	$	311,679			241,485

During 2011 and 2010, the amount of inventories in certain LIFO pools decreased, which resulted in liquidations of LIFO inventory layers, which are carried at lower costs. The effect of these liquidations was to increase net income in 2011 and 2010 by approximately $126 and $467, respectively. It is the Company's policy to record the earnings effect of LIFO inventory liquidations in the quarter in which a decrease for the entire year becomes certain. In both 2011 and 2010, the LIFO liquidation income was recorded in the fourth quarter. The Company believes that FIFO costs in the aggregate approximate replacement or current cost and, thus, the excess of replacement or current cost over LIFO value was $15.9 million and $15.0 million as of December 31, 2011 and 2010, respectively.