Inventories

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

Inventories

5. Inventories

Inventories are valued at the lower of cost or market for last-in, first-out (“LIFO”) inventory and lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. Approximately 40 percent of inventories are valued using the LIFO method of determining cost. All other inventories are valued using the FIFO method of determining cost. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation. During 2022, multiple inventory pools had an increase in commodity and other costs that are expected to hold through year-end, and therefore, an adjustment of $1.1 million was made to increase the LIFO reserve and cost of sales for the quarter and nine months ended September 30, 2022. During 2021, the Company incurred an adjustment of $1.6 million to increase the LIFO reserve and cost of sales for the quarter and nine months ended September 30, 2021.

Inventories consisted of the following:

	September 30,		December 31,
	2022		2021
Finished and in-process products	$	65,576	$	56,684
Raw materials and supplies		42,582		36,867
	$	108,158	$	93,551