NOTE 5 - INVENTORIES

12 Months Ended

Jan. 31, 2016

NOTE 5 – INVENTORIES

	January 31,			February 1,
	2016			2015
Finished furniture	$	55,120		$	54,896
Furniture in process		727			615
Materials and supplies		7,994			9,131
Inventories at FIFO		63,841			64,642
Reduction to LIFO basis		(20,128	)		(19,669	)
Inventories	$	43,713		$	44,973

If the first-in, first-out (FIFO) method had been used in valuing all inventories, net income would have been $16.5 million in fiscal 2016, $13.4 million in fiscal 2015 and $8.2 million in fiscal 2014. We recorded total LIFO expense of $499,000 in fiscal 2016, $1.3 million in fiscal 2015 and $493,000 in fiscal 2014. The reduction in LIFO basis as of February 2, 2014 and February 3, 2013 was $18.4 million and $17.9 million, respectively.

At January 31, 2016 and February 1, 2015, we had approximately $1.3 million and $1.1 million, respectively, in consigned inventories, which are included in the “Finished furniture” line in the table above.

At January 31, 2016, we held $11.0 million in inventory (approximately 6% of total assets) outside of the United States, in China and in Vietnam. At February 1, 2015, we held $10.2 million in inventory (approximately 6% of total assets) outside of the United States, in China and Vietnam.