Note 4 - Inventories

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Inventory Disclosure [Text Block]

4. Inventories

The Company uses the last-in, first-out (“LIFO”) method of valuing inventory. An actual valuation of inventory under the LIFO method is made at the end of each fiscal 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, production pack yields, sales and the expected rate of inflation or deflation for the year. The interim LIFO calculations are subject to adjustment in the final year-end LIFO inventory valuation.

As of December 31, 2022, January 1, 2022, and March 31, 2022, first-in, first-out (“FIFO”) based inventory costs exceeded LIFO based inventory costs, resulting in a LIFO reserve of $243.8 million, $159.3 million, and $164.5 million, respectively. In order to state inventories at LIFO, the Company recorded an increase to cost of products sold of $30.9 million and $19.0 million for the three months ended December 31, 2022 and January 1, 2022, respectively, and an increase to cost of products sold of $79.3 million and $30.7 million for the nine months ended December 31, 2022 and January 1, 2022, respectively.

The following table shows inventory by category and the related LIFO reserve (in thousands):

	As of:
	December 31,		January 1,		March 31,
	2022		2022		2022
Finished products	$	738,331	$	515,225		385,681
In process		67,380		26,468		23,652
Raw materials and supplies		218,572		99,611		165,491
		1,024,283		641,304		574,824
Less excess of FIFO cost over LIFO cost		243,826		159,326		164,493
Inventories	$	780,457	$	481,978	$	410,331