INVENTORIES

9 Months Ended

Sep. 30, 2012

NOTE E - INVENTORIES

Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out (“FIFO”) method. Market is replacement cost or net realizable value. We estimate reserves for inventory obsolescence based on our judgment of future realization. Inventories were comprised of the following (in thousands):

	September 30, 2012			December 31, 2011
Raw materials	$	7,422		$	7,756
Work in process		4,082			3,724
Finished goods		4,550			3,988
Spare parts and supplies		961			920
		17,015			16,388
Allowance for obsolete inventory		(716	)		(617	)
Inventories, net	$	16,299		$	15,771

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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