Note 4 - Inventories

3 Months Ended

Aug. 31, 2012

4. INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out basis) or market (net realizable value). In relation to the Acquisition on August 19, 2011, a fair value adjustment of $24.4 million increased inventory to net realizable value, which was greater than replacement cost. All of the fair value adjustment was expensed through cost of sales in the Successor fiscal 2012 period and inventories are again stated at the lower of cost (first-in, first-out basis) or market (net realizable value) net of reserves.

	August 31, 2012		May 31, 2012
	(in thousands)		(in thousands)

Raw materials and supplies	$	9,959	$	10,228
Work in process		3,410		3,550
Finished goods		21,770		19,592
	$	35,139	$	33,370

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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