Note 6: Inventories

Inventories as of December 31, 2012 and 2011 consist of the following:


	2012			2011
Raw materials, including parts and subassemblies	$	256,055			202,542
Work-in-process		44,417			57,264
Finished goods		62,230			67,748
		362,702			327,554
Excess of FIFO costs over LIFO costs		(19,505	)		(15,875	)
Inventories, net	$	343,197			311,679

During 2012 and 2011, 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 2012 and 2011 by approximately $118 and $126, 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 2012 and 2011, 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 $19.5 million and $15.9 million as of December 31, 2012 and 2011, respectively.