Note 4 – Inventories

(In thousands)	March 31, 2012			December 31, 2011

Raw materials and supplies	$	43,349		$	42,281
Work-in-process		31,915			38,420
Finished goods		166,452			143,648
Valuation reserves		(5,406	)		(5,156	)

Inventories	$	236,310		$	219,193

The Company has partially liquidated inventories valued using the last-in, first-out (LIFO) method during the first quarter of 2012. The Company expects to replenish these inventories by the end of 2012 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 $19.5 million from the liquidation of LIFO layers based on quarter-end quantities.

During 2011, inventory quantities valued using the LIFO method declined which resulted in liquidation of LIFO inventory layers. This liquidation resulted from intercompany sales; therefore, the gain from the LIFO liquidation of approximately $8.0 million was deferred. During the first quarter of 2012, the Company sold this inventory to third parties and recognized the gain. This recognition resulted in a reduction of approximately $8.0 million to cost of sales, or $0.13 per diluted share after tax.