Inventories, Net

9 Months Ended

Sep. 30, 2016

INVENTORIES, NET

A summary of Inventories, net is as follows:



	September 30, 2016			December 31, 2015
Finished products	$	40,991		$	39,405
In-process	23,467			20,814
Raw materials	44,771			28,893
Fine and fabricated precious metal in various stages of completion	20,188			13,155
	129,417			102,267
LIFO reserve	(1,798		)	—
Total	$	127,619		$	102,267

Fine and Fabricated Precious Metal Inventory

In order to produce certain of its products, HNH purchases, maintains and utilizes precious metal inventory. HNH records certain precious metal inventory at the lower of LIFO cost or market, with any adjustments recorded through Cost of goods sold. Remaining precious metal inventory is accounted for primarily at fair value.

Certain customers and suppliers of HNH choose to do business on a "pool" basis. Such customers or suppliers furnish precious metal to HNH for return in fabricated form or for purchase from or return to the supplier. When the customer's precious metal is returned in fabricated form, the customer is charged a fabrication charge. The value of pooled precious metal is not included in the Company's Consolidated Balance Sheets. To the extent HNH is able to utilize customer precious metal in its production process, such customer metal replaces the need for HNH to purchase its own inventory. As of September 30, 2016, customer metal in HNH's custody consisted of 139,450 ounces of silver, 520 ounces of gold and 1,391 ounces of palladium.



	September 30, 2016		December 31, 2015
Supplemental inventory information:
Precious metals stated at LIFO cost	$	4,946	$	3,536
Precious metals stated under non-LIFO cost methods, primarily at fair value	13,444		9,619
Market value per ounce:
Silver	19.80		13.86
Gold	1,338.65		1,062.25
Palladium	697.00		547.00