Notes to Consolidated Financial Statements

Note 5. Inventory

Inventory consists of the following:

The preceding amounts include inventory valued under the LIFO method that totaled approximately $12,663,000 and $9,141,000 at December 31, 2002 and 2001, respectively.

Note 6. Property, Plant and Equipment

Property, plant and equipment consists of the following:

Depreciation expense totaled approximately $11,280,000, $8,468,000 and $7,906,000 for the years ended December 31, 2002, 2001 and 2000, respectively. At December 31, 2002, approximately $494,000 was included in accounts payable for capital expenditures. At December 31, 2001, approximately $2,782,000 and $612,000 was included in accounts payable and accrued liabilities, respectively, for capital expenditures.

Note 7. Accrued Liabilities Accrued liabilities consists of the following:

Included in other accrued liabilities are employee payroll deductions, advance payments, accrued operating expenses, accrued warranty expenses, accrued interest and other items, none of which exceed 5% of total current liabilities.