Inventories

Inventories are valued at the lower of cost or market. Effective October 1, 2015, the Company changed its method for inventory costing from the last in, first out (LIFO) cost method to the first in, first out (FIFO) cost method for all operations that were using the LIFO cost method. This change in accounting method was deemed preferable because this change causes inventory to be valued on a consistent basis throughout the entire Company and on a more comparable basis with industry peer companies.

This change in accounting method was completed in accordance with Accounting Standards Codification (ASC) 250, Accounting Changes and Error Corrections, and all periods presented have been retrospectively adjusted to reflect the period-specific effects of applying the new accounting principle.

The following table summarizes the effect of this accounting change on our condensed consolidated statements of operations for the quarter ended September 30, 2015:



	Quarter Ended September 30, 2015
(Dollars in thousands, except per share amounts)	As Originally Reported Under LIFO		As Adjusted under FIFO		Effect of Change
Cost of sales	$	100,836	$	100,694	$	(142	)
Net income	$	12,455	$	12,546	$	91
Basic earnings per share	$	0.68	$	0.68	$	—
Diluted earnings per share	$	0.67	$	0.67	$	—

The following table summarizes the effect of this accounting change on our condensed consolidated statements of operations for the nine months ended September 30, 2015:



	Nine Months Ended September 30, 2015
(Dollars in thousands, except per share amounts)	As Originally Reported Under LIFO		As Adjusted under FIFO		Effect of Change
Cost of sales	$	306,041	$	305,757	$	(284	)
Net income	$	39,621	$	39,742	$	121
Basic earnings per share	$	2.14	$	2.15	$	0.01
Diluted earnings per share	$	2.10	$	2.10	$	—

There was no impact on cash provided by operating activities as a result of the above changes.

Inventories were as follows at the end of the periods noted below:



(Dollars in thousands)	September 30, 2016		December 31, 2015
Raw materials	$	31,814	$	35,499
Work-in-process	23,922		22,804
Finished goods	30,538		33,521
Total inventories	$	86,274	$	91,824