INVENTORIES

Inventories consist of:



	September 30, 2017			December 31, 2016
Leaf tobacco	$	38,788		$	46,253
Other raw materials	3,566			3,733
Work-in-process	433			633
Finished goods	66,737			65,052
Inventories at current cost	109,524			115,671
LIFO adjustments	(24,937		)	(25,837		)
	$	84,587		$	89,834

All of the Company’s inventories at September 30, 2017 and December 31, 2016 are reported under the LIFO method. The $24,937 LIFO adjustment as of September 30, 2017 decreases the current cost of inventories by $17,632 for Leaf tobacco, $214 for Other raw materials, $29 for Work-in-process and $7,062 for Finished goods. The $25,837 LIFO adjustment as of December 31, 2016 decreased 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.

Liggett enters into purchase commitments with third-party providers for leaf tobacco. The future quantities of leaf tobacco and prices are established at the date of the commitments. At September 30, 2017, Liggett had tobacco purchase commitments of approximately $15,234. Liggett has a single source supply agreement for reduced ignition propensity cigarette paper through 2019.

Each period, the Company capitalizes in inventory the portion of its MSA liability that relates to cigarettes shipped to public warehouses but not sold. The amount of capitalized MSA cost in “Finished goods” inventory was $17,823 and $17,364 at September 30, 2017 and December 31, 2016, respectively. Federal excise tax in inventory was $29,053 and $25,888 at September 30, 2017 and December 31, 2016.