Inventories

9 Months Ended

Sep. 30, 2023

Costs included in inventories are raw materials, labor, supplies and allocable depreciation and overhead. Raw material inventories are valued on an average cost basis. Other inventory cost elements are valued at cost, using the first-in, first-out method. The Company writes down the inventories for estimated obsolescence and to lower of cost or net realizable value based upon assumptions about future demand and market conditions. If actual demand or market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Once established, the original cost of the inventory less the related write-down represents the new cost basis of such inventories.

As of September 30, 2023 and December 31, 2022, Inventories consisted of the following:


(in thousands)	September 30, 2023		December 31, 2022
Raw materials	$	84,835	$	74,631
Work in process	71,446		50,516
Finished goods	24,710		13,903
Total inventories	$	180,991	$	139,050

On August 31, 2023, the Company acquired all of the outstanding shares of Heimbach, which resulted in an increase of $41.5 million to Inventories, based on preliminary fair values at the date of acquisition.