Inventories

6 Months Ended

Jun. 30, 2019

INVENTORIES

Inventories consisted of:



	June 30, 2019			December 31, 2018
Leaf tobacco	$	47,108		$	42,917
Other raw materials	3,782			3,750
Work-in-process	331			1,931
Finished goods	67,751			63,937
Inventories at current cost	118,972			112,535
LIFO adjustments	(22,038		)	(21,538		)
	$	96,934		$	90,997

All of the Company’s inventories at June 30, 2019 and December 31, 2018 are reported under the LIFO method. The $22,038 LIFO adjustment as of June 30, 2019 decreases the current cost of inventories by $15,432 for Leaf tobacco, $219 for Other raw materials, $25 for Work-in-process and $6,362 for Finished goods. The $21,538 LIFO adjustment as of December 31, 2018 decreased the current cost of inventories by $14,932 for Leaf tobacco, $219 for Other raw materials, $25 for Work-in-process and $6,362 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 June 30, 2019, Liggett had tobacco purchase commitments of approximately $25,795. 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 $17,815 and $16,001 at June 30, 2019 and December 31, 2018, respectively. Federal excise tax capitalized in inventory was $26,437 and $26,419 at June 30, 2019 and December 31, 2018, respectively.