Inventories

12 Months Ended

Dec. 31, 2019

INVENTORIES

Inventories consist of:



	December 31, 2019			December 31, 2018
Leaf tobacco	$	44,516		$	42,917
Other raw materials	4,669			3,750
Work-in-process	333			1,931
Finished goods	71,183			63,937
Inventories at current cost	120,701			112,535
LIFO adjustments	(21,939		)	(21,538		)
	$	98,762		$	90,997

All of the Company’s inventories as of December 31, 2019 and 2018 have been reported under the LIFO method. The $21,939 LIFO adjustment as of December 31, 2019 decreases the current cost of inventories by $15,210 for Leaf tobacco, $182 for Other raw materials, $24 for Work-in-process, and $6,523 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. Cost of goods sold was reduced by $46 and $567 for the years ended December 31, 2019 and December 31, 2018, 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. As of December 31, 2019, Liggett had tobacco purchase commitments of approximately $20,693. The Company has a single source supply agreement for reduced ignition propensity cigarette paper through 2022.

Each year, the Company capitalizes in inventory that 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 $20,472 and $16,001 as of December 31, 2019 and 2018, respectively. Federal excise tax in inventory was $27,676 as of December 31, 2019 and $26,419 at December 31, 2018.