INVENTORIES

Inventories consist of:



	December 31, 2016			December 31, 2015
Leaf tobacco	$	46,253		$	49,856
Other raw materials	3,733			3,578
Work-in-process	633			789
Finished goods	65,052			61,493
E-Cigarettes	—			80
Inventories at current cost	115,671			115,796
LIFO adjustments	(25,837		)	(29,280		)
	$	89,834		$	86,516

All of the Company’s inventories, excluding amounts related to prepaid MSA cost and federal excise taxes, at December 31, 2016 and 2015 have been reported under the LIFO method. The $25,837 LIFO adjustment as of December 31, 2016 decreases the current cost of inventories by $17,632 for Leaf tobacco, $214 for Other raw materials, $29 for Work-in-process, and $7,962 for Finished goods. The $29,280 LIFO adjustment as of December 31, 2015 decreased 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. Cost of goods sold was reduced by $211 and $1,703 for the year ended December 31, 2016 and December 31, 2015, respectively, 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, 2016, Liggett had tobacco purchase commitments of approximately $10,874. The Company has a single source supply agreement for reduced ignition propensity 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 $17,364 and $15,796 at December 31, 2016 and 2015, respectively. Federal excise tax in inventory was $25,888 at December 31, 2016 and $23,455 at December 31, 2015.