Inventories

9 Months Ended

Oct. 01, 2011

Note 4 – Inventories

	October 1, 2011			December 25, 2010
(In thousands)

Raw materials and supplies	$	2,998		$	47,737
Work-in-process		56,793			34,784
Finished goods		166,863			131,921
Valuation reserves		(11,786	)		(4,550	)

Inventories	$	214,868		$	209,892

The material component of the Company’s U.S. copper tube and copper fittings inventories is valued on a last-in, first-out (LIFO) basis. These inventories were net of LIFO reserves of $118.2 million and $105.6 million at October 1, 2011 and December 25, 2010, respectively. The Company has partially liquidated inventories valued using the LIFO method during the first nine months of 2011. The Company expects to replenish these inventories by the end of 2011 and, as such, has not recognized the effects of liquidating LIFO layers. In the event these inventories are not replenished, due to lack of availability or operational reasons, the Company would recognize a reduction to cost of goods sold of approximately $18.7 million from the liquidation of LIFO layers based on quarter-end quantities.

Additionally, as of October 1, 2011, the Company has recorded a pre-tax provision of approximately $6.8 million, or 12 cents per diluted share after tax, to write-down certain inventories valued using the first-in, first-out and average cost methods to lower-of-cost-or-market.