3.	INVENTORIES

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


	2014			2013
Finished goods	$	32,756		$	30,423
Raw materials		16,290			16,502

Total FIFO inventories		49,046			46,925
Reserve to adjust inventories to LIFO value		(25,299	)		(24,497	)

Total LIFO inventories	$	23,747		$	22,428

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 to cost of sales a $4.5 million benefit due to a reduction in inventory. No such inventory reduction occurred during the years ended December 31, 2014 and 2013.