Note 4: Inventories

At June 30, 2013 and December 31, 2012, inventory reserves for certain slow-moving inventory items (Climate Control products) were $1,453,000 and $1,818,000, respectively. In addition, because cost exceeded the net realizable value, inventory reserves for certain nitrogen-based inventories provided by our Chemical Business were $1,056,000 and $975,000 at June 30, 2013 and December 31, 2012, respectively.

Changes in our inventory reserves are as follows:


	Six Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013			2012
				(In Thousands)
Balance at beginning of period	$	2,793		$	1,783		$	2,506		$	1,705
Provisions for losses		235			44			519			39
Write-offs and disposals		(519	)		(90	)		(516	)		(7	)

Balance at end of period	$	2,509		$	1,737		$	2,509		$	1,737

The provision for losses is included in cost of sales in the accompanying condensed consolidated statements of income.