5) Inventories


	December 31,		December 31,
	2016		2015
Raw materials	$	49,205	$	50,204
Work in process		31,348		30,604
Finished goods		34,298		39,028

Inventories	$	114,851	$	119,836

Finished goods inventory on consignment at customers’ sites at December 31, 2016 and 2015 was approximately $5.0 million and $5.1 million, respectively.

The inventory valuations above were developed using normalized production capacities for each of our manufacturing locations. Any costs from abnormal excess capacity or under-utilization of fixed production overheads are expensed in the period incurred and are not included as a component of inventory valuation.