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INVENTORIES

6 Months Ended

Jul. 01, 2017

Inventory Disclosure [Abstract]

NOTE 3 - INVENTORIES

Inventories are valued using the last-in, first-out (LIFO) method. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs existing at that time. Accordingly, interim LIFO calculations must necessarily be based on management's estimates of expected year-end inventory levels and costs. Because these are subject to many factors beyond management's control, interim results are subject to the final year-end LIFO inventory valuation.

During the six month period ended July 1, 2017, inventory quantities were reduced. If this reduction remains through year-end, it will result in a liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years as compared with the current cost of purchases. Although the effect of such a liquidation cannot be precisely quantified at the present time, management believes that if a LIFO liquidation occurs in 2017, the impact may be material to the Company’s results of operations for the period but will not have a material impact on the financial position of the Company.

Inventories consist of the following:

		July 1, 2017				December 31, 2016
Inventory at FIFO
Finished products		$	29,529			$	24,100
Materials and work in process			69,336				75,317
Gross inventories			98,865				99,417
Less: LIFO reserve			(44,021	)			(42,542	)
Less: excess and obsolescence reserve			(2,603	)			(2,340	)
Net inventories		$	52,241			$	54,535