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INVENTORY
6 Months Ended
Jun. 30, 2026
INVENTORY  
INVENTORY

NOTE D – INVENTORY

Inventory consisted of the following (in thousands):

  ​ ​ ​

June 30, 2026

  ​ ​ ​

December 31, 2025

USM

$

129,869

$

147,742

Whole assets

121,610

118,855

Work-in-process

39,169

20,439

MRO and engineered solutions

85,399

76,728

$

376,047

363,764

Less short term

 

(227,179)

 

(205,379)

Long term

$

148,868

$

158,385

The Company recorded inventory scrap loss reserves of $0.7 million and $1.8 million for the three and six months ended June 30, 2026, respectively. The Company recorded inventory scrap loss reserves of $0.8 million and $1.6 million for the three and six months ended June 30, 2025, respectively.

The Company recorded an inventory reserve of $1.6 million for the six months ended June 30, 2026 due to the Company’s evaluation of the inventory’s net realizable value. Additions to inventory reserves are included in cost of products in the accompanying condensed consolidated statements of operations.

Our allocation of inventory between short term and long term reflects the inventory’s operating cycle, which is longer than one year due to teardown and repair lead times. Inventory expected to be monetized within 18 months, along with work-in-process and inventory used in MRO activities, is reported under current assets.