Inventories – net


	December 31
	2021			2020
Raw materials	$	76,636		$	53,947
Work-in-process		10,117			9,272
Finished products		37,216			38,801
		123,969			102,020
Excess of current cost over LIFO cost		(9,462	)		(4,483	)
	$	114,507		$	97,537

Costs for inventories of certain material, mainly in the U.S., are determined using the LIFO method and totaled approximately $44.0 million and $32.0 million at December 31, 2021 and 2020, respectively. The Company’s reserves for slow-moving and obsolete inventory at December 31, 2021 and 2020 were $10.6 million and $9.9 million, respectively.

Major classes of property, plant and equipment are as follows:


	December 31
	2021			2020
Land and improvements	$	21,039		$	22,132
Buildings and improvements		99,403			97,909
Machinery, equipment and aircraft		204,945			176,377
Construction in progress		10,605			9,563
		335,992			305,981
Less accumulated depreciation		(186,218	)		(180,016	)
	$	149,774		$	125,965

Depreciation of property and equipment was $13.6 million in 2021, $12.2 million in 2020 and $12.3 million in 2019. Machinery, equipment and aircraft includes $0.6 million and $0.3 million of financing leases at December 31, 2021 and 2020, respectively.

The Company can be party to a variety of pending legal proceedings and claims arising in the normal course of business, including, but not limited to, litigation relating to employment, workers’ compensation, product liability, environmental and intellectual property. The Company has liability insurance to cover many of these claims.

Although the outcomes of these matters are not predictable with certainty, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a loss is not probable, but is reasonably possible, and the likelihood to develop what the Company believes to be a reasonable range of potential loss exists, the Company will include disclosure related to such matters. To the extent that there is a reasonable possibility the losses could exceed amounts already accrued, the Company will adjust the accrual in the period in which the determination is made, disclose an estimate of the additional loss or range of loss and if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made. During the years ended December 31, 2021 and 2020, the Company maintained approximately $2.3 million and $2.2 million, respectively, representing its best estimate for losses to be incurred on global legal matters.

The Company and its subsidiaries Helix Uniformed Ltd. (“Helix”) and Preformed Line Products (Canada) Limited (“PLPC Canada”), were each named, jointly and severally, with each of SNC-Lavalin ATP, Inc. (“SNC ATP”), HD Supply Canada Inc., by its trade names HD Supply Power Solutions and HD Supply Utilities (“HD Supply”), and Anixter Power Solutions Canada Inc. (the corporate successor to HD Supply, “Anixter” and, together with the Company, PLPC Canada, Helix, SNC ATP and HD Supply, the (“Defendants”) in a complaint filed by Altalink, L.P. (the “Plaintiff”) in the Court of Queen’s Bench of Alberta in Alberta, Canada in November 2016 (the “Complaint”).

The Complaint states that Plaintiff engaged SNC ATP to design, engineer, procure and construct numerous power distribution and transmission facilities in Alberta (the “Projects”) and that through SNC ATP and HD Supply (now Anixter), spacer dampers manufactured by Helix were procured and installed in the Projects. The Complaint alleges that the spacer dampers have and may continue to become loose, open and detach from the conductors, resulting in damage and potential injury and a failure to perform the intended function of providing spacing and damping to the Project. The Plaintiffs are seeking an estimated $56.0 million Canadian dollars in damages jointly and severally from the Defendants, representing the costs of monitoring and replacing the spacer dampers and remediating property damage, due to alleged defects in the design and construction of, and supply of materials for, the Projects by SNC ATP and HD Supply/Anixter and in the design of the spacer dampers by Helix.

The Company believes the claims against it are without merit and intends to vigorously defend against such claims. The Company is unable to predict the outcome of this case, however, it has recorded a reserve for the low end of the range for potential loss associated with this matter. If this matter is concluded in a manner adverse to the Company, it could have a material effect on the Company’s financial results.

The Company is not a party to any other pending legal proceedings that the Company believes would, individually or in the aggregate, have a material adverse effect on its financial condition, results of operations or cash flow.