INVENTORIES

Inventories consist of:



	December 31, 2015			December 31, 2014
Leaf tobacco	$	49,856		$	49,948
Other raw materials	3,578			3,532
Work-in-process	789			879
Finished goods	61,493			62,876
E-Cigarettes	80			3,079
Inventories at current cost	115,796			120,314
LIFO adjustments	(29,280		)	(29,991		)
	$	86,516		$	90,323

All of the Company’s inventories, excluding amounts related to prepaid MSA cost and federal excise taxes, at December 31, 2015 and 2014 have been reported under the LIFO method. The $29,280 LIFO adjustment as of December 31, 2015 decreases the current cost of inventories by $19,863 for leaf tobacco, $643 for other raw materials, $33 for work-in-process, $8,736 for finished goods and $5 for E-Cigarettes. The $29,991 LIFO adjustment as of December 31, 2014 decreased the current cost of inventories by $19,941 for leaf tobacco, $861 for other raw materials, $39 for work-in-process, $9,054 for finished goods and $96 for E-Cigarettes. Cost of goods sold was reduced by $1,703 for the year ended December 31, 2015 due to liquidations of LIFO inventories.

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, 2015, Liggett had tobacco purchase commitments of approximately $15,466. 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 and federal excise taxes 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 $15,796 and $14,369 at December 31, 2015 and 2014, respectively. Federal excise tax in inventory was $23,455 at December 31, 2015 and $22,642 at December 31, 2014.