3.	INVENTORIES

Inventories (at LIFO value) consist of the following as of December 31 (in thousands):


	2013			2012
Finished goods	$	30,423		$	23,172
Raw materials		16,502			18,068

Total FIFO inventories		46,925			41,240
Reserve to adjust inventories to LIFO value		(24,497	)		(23,719	)

Total LIFO inventories	$	22,428		$	17,521

Inventory is stated at the lower of LIFO cost or net realizable value. The Company periodically reviews its inventory for slow moving or obsolete items and writes down the related products to estimated net realizable value.

Under the LIFO method, reductions in inventory cause a portion of the Company’s cost of sales to be based on historical costs rather than current year costs. During the year ended December 31, 2012, the Company recognized a $4.5 million benefit due to a reduction in inventory. No such inventory reduction occurred during the years ended December 31, 2013 and 2011.