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Inventories

6 Months Ended

Jun. 30, 2012

Inventories [Abstract]

4. INVENTORIES

Inventories, at LIFO (last-in, first-out) value, consist of the following (in thousands):


		June 30, 2012				December 31, 2011
Finished goods		$	22,055			$	29,980
Raw materials			18,721				27,134

Total FIFO inventories			40,776				57,114
Reserve to adjust inventories to LIFO value			(27,338	)			(28,218	)

Total LIFO inventories		$	13,438			$	28,896

Due to the liquidation of certain inventories, a portion of the Company’s cost of sales is based on prior year costs rather than current year costs. As a result, the Company recognized a benefit of $0.9 million during six months ended June 30, 2012.

An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs. Since inventory levels and costs are subject to factors beyond management’s control, interim results are subject to the final year-end LIFO inventory valuation.

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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