Note 4 - Inventories

9 Months Ended

Sep. 30, 2019

NOTE

- INVENTORIES

LIFO inventories are stated at the lower of cost or market and all other inventories are stated at the lower of cost or net realizable value. Replacement cost approximates current cost and the excess over LIFO cost is approximately

$64.0

million and

$63.7

million at

September 30, 2019

and

December

31,

2018,

respectively. Allowances for excess and obsolete inventory totaled

$5.9

million and

$5.3

million at

September 30, 2019

and

December

31,

2018,

respectively. Some inventory levels were reduced during the

third

quarter of

2019,

resulting in liquidation of some LIFO levels carried at lower costs from earlier years versus current year costs. The related effect increased net income by approximately

$0.8

million during the

third

quarter of

2019.

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.

Inventories are comprised of the following:

Inventories, net:	September 3 0 , 2019		December 31, 2018
Raw materials and in-process	$	14,809	$	21,773
Finished parts		48,384		54,209
Finished products		10,406		11,405
Total net inventories	$	73,599	$	87,387