(5) Inventories

Inventories are valued at the lower of cost (using either the first-in, first-out (“FIFO”) or average cost methods) or market. The Company evaluates and adjusts as necessary its excess and obsolescence reserve at a minimum on a quarterly basis. Excess inventories are quantities of items that exceed anticipated sales or usage for a reasonable period. The Company has guidelines for calculating provisions for excess inventories based on the number of months of inventories on hand compared to anticipated sales or usage. Management uses its judgment to forecast sales or usage and to determine what constitutes a reasonable period.

Inventory cost includes material, labor and overhead. Inventories consisted of the following:


		September 30,		December 31,
		2014		2013
Raw materials	$	47,976	$	47,099
Work-in-progress		10,190		10,622
Finished goods		28,021		21,807
Total inventories, net	$	86,187	$	79,528

Inventory valued using the FIFO method was $40,520 and $33,220 at September 30, 2014 and December 31, 2013, respectively. Inventory valued using the average cost method was $45,667 and $46,308 at September 30, 2014 and December 31, 2013, respectively.