Change in Accounting Principle; Inventories (Policies)

3 Months Ended

Mar. 31, 2014

Change in Accounting Principle [Abstract]

Effective January 1, 2014, the Company elected to change its method of accounting for certain inventories from lower of cost, as determined by the LIFO method, or market, to lower of cost, as determined by the average cost method, or market. We believe the change is preferable as the average cost method better reflects the current value of inventory on the consolidated balance sheets, more closely aligns with how we manage inventory, and conforms the inventory costing methods to be more consistent within the Company. Supplies and materials are valued at the first-in, first out ("FIFO") or average cost methods.

The Company has applied this change in method of inventory costing retrospectively to all prior periods presented in accordance with U.S. generally accepted accounting principles relating to accounting changes. As a result of the retrospective change in accounting principle, opening retained earnings as of January 1, 2013, increased $38.8 million. Certain components of our financial statements affected by the change in valuation methodology as originally reported under the LIFO method and as adjusted for the change to the average cost method are as follows (in thousands, except per share data):



	Three Months Ended
	March 31, 2013
Consolidated Statement of Income and Comprehensive Income	As Previously Reported (a)			Effect of Change			As Adjusted
Cost of sales	$	(572,715	)	$	2,754		$	(569,961	)
Gross profit	182,492			2,754			185,246
Income from operations	103,246			2,754			106,000
Income before taxes	93,995			2,754			96,749
Provision for income taxes	(33,382		)	(1,073		)	(34,455		)
Net income	60,613			1,681			62,294
Comprehensive income	63,371			1,681			65,052
Net income per common share
Basic	0.63			0.02			0.65
Diluted	0.62			0.02			0.64

___________


(a)	Certain amounts in prior periods' consolidated financial statements have been reclassified to conform with the current period presentation.



	December 31, 2013
Consolidated Balance Sheet	As Previously Reported		Effect of Change			As Adjusted
Inventories	$	522,523	$	71,768		$	594,291
Deferred income tax assets	75,579		(27,963		)	47,616
Retained earnings	975,296		43,805			1,019,101



	Three Months Ended
	March 31, 2013
Consolidated Statement of Cash Flows	As Previously Reported			Effect of Change			As Adjusted
Net income	$	60,613		$	1,681		$	62,294
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax provision (benefit)	(877		)	1,073			196
Change in inventories	(1,414		)	(2,754		)	(4,168		)

Had the Company not made this change in accounting method, "Net income" for the three months ended March 31, 2014, would have been $1.4 million higher than reported in the Consolidated Statements of Income and "Inventories" at March 31, 2014, would have been $69.5 million lower than reported in the Consolidated Balance Sheets.

The components of inventories are as follows (dollars in thousands):



	March 31, 2014		December 31, 2013
Raw materials	$	239,034	$	212,027
Work in process	12,453		13,898
Finished goods	195,097		209,972
Supplies and materials	160,722		158,394
Inventories	$	607,306	$	594,291

- Definition

Disclosure of accounting policy for major classes of inventories, bases of stating inventories (for example, lower of cost or market), methods by which amounts are added and removed from inventory classes (for example, FIFO, LIFO, or average cost), loss recognition on impairment of inventories, and situations in which inventories are stated above cost. If inventory is carried at cost, this disclosure includes the nature of the cost elements included in inventory.

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