(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 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,
		2015		2014
Raw materials	$	39,829	$	41,767
Work-in-progress		9,587		8,779
Finished goods		21,965		20,707
Total inventories, net	$	71,381	$	71,253

Inventory valued using the FIFO method was $41,532 and $34,636 at September 30, 2015 and December 31, 2014, respectively. Inventory valued using the average cost method was $29,849 and $36,617 at September 30, 2015 and December 31, 2014, respectively.