Inventories, Net Of Customer Advances

12 Months Ended

Dec. 31, 2013

INVENTORIES, NET OF CUSTOMER ADVANCES



	December 31,
	2013		2012
Cost incurred on long-term contracts in progress	$	836,414	$	832,642
Raw materials	118,820		119,416
Advances to suppliers and subcontractors	40,116		35,857
	995,350		987,915
Less -
Cost incurred on contracts in progress deducted from customer advances	68,170		68,306
Advances received from customers (*)	95,131		104,297
Provision for losses on long-term contracts	76,017		64,065
	$	756,032	$	751,247


(*)	The Company has transferred legal title of inventories to certain customers as collateral for advances received. Advances are allocated to the relevant inventories on a per-project basis. In cases where advances are in excess of the inventories, the net amount is presented in customer advances (See Note 14).

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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