Note 2 – Inventories

(In thousands)	2012			2011

Raw materials and supplies	$	46,114		$	42,281
Work-in-process		40,951			38,420
Finished goods		148,014			143,648
Valuation reserves		(5,645	)		(5,156	)

Inventories	$	229,434		$	219,193

Inventories valued using the LIFO method totaled $19.9 million at December 29, 2012 and $15.1 million at December 31, 2011. At December 29, 2012 and December 31, 2011, the approximate FIFO cost of such inventories was $109.8 million and $101.2 million, respectively. Additionally, the Company valued certain inventories purchased for resale on an average cost basis. The values of those inventories were $51.4 million at December 29, 2012 and $44.9 million at December 31, 2011.

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.

At December 29, 2012, the FIFO value of inventory consigned to others was $4.5 million compared with $2.9 million at the end of 2011.