11. Inventories

Inventories are stated at the lower of cost or market, and are valued at average cost, net of reserves. Costs included in inventory are raw materials, labor, supplies, and allocable depreciation and overhead. 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 June 30, 2015 and December 31, 2014, inventories consisted of the following:

(in thousands)	June 30, 2015		December 31, 2014
Raw materials	$	25,942	$	27,006
Work in process		46,626		43,512
Finished goods		37,062		36,756
Total inventories	$	109,630	$	107,274