3. INVENTORIES

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


	March 31, 2014			December 31, 2013
Finished goods	$	39,339		$	30,423
Raw materials		15,371			16,502

Total FIFO inventories		54,710			46,925
Reserve to adjust inventories to LIFO value		(24,497	)		(24,497	)

Total LIFO inventories	$	30,213		$	22,428

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. There were no LIFO inventory liquidations in the three months ended March 31, 2014 or 2013.

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.