INVENTORIES

Inventories consist of:



	December 31, 2014			December 31, 2013
Leaf tobacco	$	49,948		$	49,140
Other raw materials	3,532			3,161
Work-in-process	879			353
Finished goods	62,876			67,201
E-Cigarettes	3,079			839
Inventories at current cost	120,314			120,694
LIFO adjustments	(29,991		)	(27,198		)
	$	90,323		$	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 December 31, 2014, Liggett had tobacco purchase commitments of approximately $23,988 and E-Cigarettes purchase commitments of $300. The Company has a single source supply agreement for fire safe cigarette paper through 2015.

The Company capitalizes the incremental prepaid cost of the MSA in ending inventory. Each year, the Company capitalizes in inventory that portion of its MSA liability that relates to cigarettes shipped to the public warehouses but not sold. The amount of capitalized MSA cost in “Finished goods” inventory was $14,369 and $15,464 at December 31, 2014 and 2013, respectively.

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