INVENTORIES

Inventories consist of:



	March 31, 2015			December 31, 2014
Leaf tobacco	$	59,616		$	49,948
Other raw materials	3,634			3,532
Work-in-process	503			879
Finished goods	65,365			62,876
E-Cigarettes	1,555			3,079
Inventories at current cost	130,673			120,314
LIFO adjustments	(31,615		)	(29,991		)
	$	99,058		$	90,323

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, 2015, Liggett had tobacco purchase commitments of approximately $14,729 and E-Cigarettes purchase commitments of $300. The Company has a single source supply agreement for fire safe cigarette paper through 2019.

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 $14,814 and $14,369 at March 31, 2015 and December 31, 2014, respectively.

All of the Company's inventories at March 31, 2015 and December 31, 2014 have been reported under the LIFO method.