11. Inventories

Inventories are stated at the lower of cost or market, and are valued at average cost, net of reserves. The Company maintains reserves for possible impairment in the value of inventories. Such reserves can be specific to certain inventory, or general based on judgments about the overall condition of the inventory. General reserves are established based on percentage write-downs applied to aged inventories, or for inventories that are slow-moving. If actual results differ from estimates, additional inventory write-downs may be necessary. These general reserves for aged inventory are relieved through income only when the inventory is sold.

As of March 31, 2014 and December 31, 2013, inventories consisted of the following:


(in thousands)	March 31, 2014	December 31, 2013
Raw materials	$28,229	$25,754
Work in process	49,314	45,998
Finished goods	43,867	40,987
Total inventories	$121,410	$112,739