Note C - Inventories

6 Months Ended

Jun. 30, 2016

NOTE C

INVENTORIES

Inventories are stated at the lower of cost or market. The costs for approximately 72% of inventories at June 30, 2016 and 73% of inventories at December 31, 2015 are determined using the last-in, first-out (LIFO) method, with the remainder determined using the first-in, first-out (FIFO) method applied on a consistent basis. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels and costs at that time. Interim LIFO calculations are based on

management’s estimate of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation.

The major components of inventories are as follows (net of LIFO reserves of $60.0 million and $59.1 million at

June 30, 2016 and December 31,

2015, respectively):

(Dollars in thousands)	June 30, 2016		December 31, 2015
Raw materials and in-process	$	24,088	$	25,652
Finished parts		42,936		46,270
Finished products		8,527		10,896
Total inventories	$	75,551	$	82,818