5. Inventories


	Finished		Work-in-		Raw
	Goods		Process		Materials		Total
	(In Thousands)
December 31, 2012:
Chemical products	$	25,487	$	—	$	4,194	$	29,681
Climate Control products		7,045		3,576		20,352		30,973
Industrial machinery and components		4,319		—		—		4,319

	$	36,851	$	3,576	$	24,546	$	64,973

December 31, 2011:
Chemical products	$	18,509	$	—	$	4,063	$	22,572
Climate Control products		6,871		4,855		21,579		33,305
Industrial machinery and components		3,629		—		—		3,629

	$	29,009	$	4,855	$	25,642	$	59,506

At December 31, 2012 and 2011, inventory reserves for certain slow-moving inventory items (Climate Control products) were $1,818,000 and $1,767,000, respectively. In addition, because cost exceeded the net realizable value, inventory reserves for certain nitrogen-based inventories provided by our Chemical Business were $975,000 and $16,000 at December 31, 2012 and 2011, respectively.

Changes in our inventory reserves are as follows:


	2012			2011			2010
				(In Thousands)
Balance at beginning of year	$	1,783		$	1,793		$	1,676
Provisions for losses		1,140			590			184
Write-offs and disposals		(130	)		(600	)		(67	)

Balance at end of year	$	2,793		$	1,783		$	1,793

The provisions for losses are included in cost of sales in the accompanying consolidated statements of income.