Note B - Other Financial Statement Information

Inventories – net

	December 31
	2016			2015
Raw materials	$	37,535		$	34,854
Work-in-process		9,057			6,902
Finished products		35,629			37,812
		82,221			79,568
Excess of current cost over LIFO cost		(2,784	)		(3,538	)
Noncurrent portion of inventory		(4,953	)		(6,118	)
	$	74,484		$	69,912

Costs for inventories of certain material are determined using the LIFO method and totaled approximately $28.6 million and $26.8 million at December 31, 2016 and 2015, respectively.

Property and equipment – net

Major classes of property, plant and equipment are as follows:

	December 31
	2016		2015
Land and improvements	$	12,584	$	12,260
Buildings and improvements		72,662		71,711
Machinery, equipment and aircraft		158,078		137,599
Construction in progress		3,877		3,369
		247,201		224,939
Less accumulated depreciation		142,097		132,974
	$	105,104	$	91,965

Depreciation of property and equipment was $10.8 million in 2016, $10.3 million in 2015 and $11.3 million in 2014. Machinery, equipment and aircraft includes $.2 million and $.3 million of capital leases at December 31, 2016 and 2015, respectively.

Legal proceedings

The Company and its subsidiaries, Helix Uniformed Ltd. (“Helix”) and Preformed Line Products (Canada) Limited (“PLPC Canada”), were each named, jointly and severally, with each of SNC-Lavalin ATP, Inc. (“SNC ATP”), HD Supply Canada Inc., by its trade names HD Supply Power Solutions and HD Supply Utilities (“HD Supply”), and Anixter Power Solutions Canada Inc. (the corporate successor to HD Supply, “Anixter” and, together with the Company, PLPC Canada, Helix, SNC ATP and HD Supply, the “Defendants”) in a complaint filed by Altalink, L.P. (the “Plaintiff”) in the Court of Queen’s Bench of Alberta in Alberta, Canada in November 2016 (the “Complaint”).

The Complaint states that Plaintiff engaged SNC ATP to design, engineer, procure and construct numerous power distribution and transmission facilities in Alberta (the “Projects”) and that through SNC ATP and HD Supply (now Anixter), space dampers manufactured by Helix were procured and installed in the Projects. The Complaint alleges that the space dampers have and may continue to become loose, open and detach from the conductors, resulting in damage and potential injury and a failure to perform the intended function of providing spacing and damping to the Project. The Plaintiffs are seeking an estimated $56 million in damages jointly and severally from the Defendants, representing the costs of monitoring and replacing the space dampers and remediating property damage, due to alleged defects in the design and construction of, and supply of materials for, the Projects by SNC ATP and HD Supply/Anixter and in the design of the space dampers by Helix.

The lawsuit is in its very early stages, but the Company believes the claims against it are without merit and intends to vigorously defend against such claims. However, we are unable to predict the outcome of this case and, if determined adversely to the Company, it could have a material effect on our financial results.

From time to time, the Company may be subject to litigation incidental to its business. The Company is not a party to any other pending legal proceedings that the Company believes would, individually or in the aggregate, have a material adverse effect on its financial condition, results of operations or cash flows.