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Inventories

3 Months Ended

Mar. 31, 2014

INVENTORIES

Inventories consist of:



	March 31, 2014			December 31, 2013
Leaf tobacco	$	60,991		$	49,140
Other raw materials	3,149			3,161
Work-in-process	797			353
Finished goods	73,566			68,040
Inventories at current cost	138,503			120,694
LIFO adjustments	(28,473		)	(27,198		)
	$	110,030		$	93,496

The Company has a leaf inventory management program whereby, among other things, it is committed to purchase certain quantities of leaf tobacco. The purchase commitments are for quantities not in excess of anticipated requirements and are at prices, including carrying costs, established at the commitment date. At March 31, 2014, Liggett had purchase commitments of approximately $13,235. The Company has a single source supply agreement for fire safe cigarette paper through 2015.

All of the Company's inventories at March 31, 2014 and December 31, 2013 have been reported under the LIFO method.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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