3.	INVENTORIES

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


	2016			2015
Finished goods	$	29,686		$	24,961
Raw materials		20,231			21,384

Total FIFO (first-in, first out) inventories		49,917			46,345
Reserve to adjust inventories to LIFO value		(21,371	)		(23,241	)

Total LIFO inventories	$	28,546		$	23,104

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. There was no inventory reduction during 2016. There was an inventory reduction in 2015. However, the impact on the Company’s cost of sales was not material due the fact that the historical costs expensed during 2015 closely approximated the current year costs.