Note 4. Inventories

The components of inventory at October 31, 2012 and 2011 consisted of the following:



	2012		2011
Raw materials	$	17,683	$	18,303
Work-in-process ⁽¹⁾	30,018		21,798
Net inventory	$	47,701	$	40,101

(1) Work-in-process includes the standard components of inventory that are used to build typical modules or stack components that are intended to be used in future power plant orders. Included in Work-in-process as of October 31, 2012 is $11.3 million of completed standard components ready to be incorporated into power plants and deployed upon receipt of customer orders.

Raw materials consist mainly of various nickel powders and steels, various other components used in producing cell stacks and purchased components for balance of plant. Work-in-process inventory is comprised of material, labor, and overhead costs incurred to build fuel cell stacks, which are subcomponents of a power plant. Work in process also includes costs related to modules which have not yet been dedicated to a particular commercial customer contract.

Raw materials and work in process are net of valuation reserves of approximately $2.4 million and $2.6 million at October 31, 2012 and 2011, respectively.