Inventories

9 Months Ended

Oct. 08, 2011

Inventories {2}

Inventory Disclosure [Text Block]

Note 2 – Inventories

We use the LIFO method for valuation of a substantial portion of inventories.  An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs.  Because these estimates are subject to many factors beyond management’s control, interim results are subject to the final year-end LIFO inventory valuation.  If the FIFO method had been used, inventories would have been approximately $82.8 million higher on October 8, 2011 and $73.1 million higher on January 1, 2011.  We recorded a LIFO charge of $7.1 million during the third quarter 2011 as compared to a LIFO charge of $0.3 million during the third quarter 2010.  During year-to-date 2011, we recorded a LIFO charge of $9.7 million as compared to a LIFO credit of $0.1 million during year-to-date 2010.