Note 8—INVENTORIES:

Inventories are valued at cost as determined by the last-in, first-out (“LIFO”) method for approximately 51% and 60% of the Company’s inventories at September 30, 2012 and December 31, 2011, respectively. The remaining inventories are valued at cost determined by a combination of the first-in, first-out (“FIFO”) and weighted-average cost methods. Inventory costs generally include materials, labor, and manufacturing overhead (including depreciation). As of September 30, 2012 and December 31, 2011, the current cost of inventories exceeded their carrying value by $62,801 and $63,826, respectively. When market conditions indicate an excess of carrying cost over market value, a lower-of-cost-or-market provision is recorded. Inventories consisted of the following:


	September 30,			December 31,
	2012			2011
Raw materials and supplies	$	133,640		$	83,778
Work-in-process and finished goods		307,379			255,107
LIFO reserve		(62,801	)		(63,826	)

Total inventories	$	378,218		$	275,059