Inventories at June 30, 2012, and March 31, 2012, are summarized as follows:

Inventories consist primarily of finished discs (i.e., DVDs and Blu-ray discs) for sale and are stated at the lower of average cost or market.

Production costs consist of capitalized costs to produce licensed programming for domestic and international distribution and include the costs of film and tape conversion to the optical disc format, menu and packaging design, authoring, compression and mastering. Non-recoupable production costs are reflected net of accumulated amortization of $10,604,000 and $11,922,000 at June 30, 2012 and March 31, 2012, respectively.