XML 32 R8.htm IDEA: XBRL DOCUMENT v3.2.0.727
Note 3 - Inventories
 6 Months Ended
Jun. 30, 2015
Inventory Disclosure [Abstract]  
Inventory Disclosure [Text Block]

3.

Inventories:

Inventories consisted of the following:


   

Inventory as of

  

(in thousands)

  

June 30, 2015

    

December 31, 2014

  

Unprocessed

   $ 186,522     $ 238,226  

Processed and finished

     56,938       72,882  

Totals

   $ 243,460     $ 311,108  

The Company values certain of its tubular and pipe products inventory under the last-in, first-out (LIFO) method. At June 30, 2015 and December 31, 2014, approximately $45.2 million, or 18.6% of consolidated inventory, and $46.6 million, or 15.0% of consolidated inventory, respectively, was reported under the LIFO method of accounting. The cost of the remainder of the tubular and pipe products inventory is determined using a weighted average rolling first-in, first-out (FIFO) method.


For the six months ended June 30, 2015, the Company recorded $650 thousand of LIFO income as a result of expected year-over-year decreases in carbon, nickel and base stainless steel pricing and expected lower inventory quantities at December 31, 2015. Of the $650 thousand LIFO income, $400 thousand was recorded in the second quarter of 2015. The LIFO income increased the Company’s inventory balance and decreased its cost of materials sold.


For the three and six months ended June 30, 2014, the Company recorded $400 thousand of LIFO expense as projections at that time anticipated increased pricing of inventory for the remainder of 2014.


If the FIFO method had been in use, inventories would have been $3.9 million and $3.2 million lower than reported at June 30, 2015 and December 31, 2014, respectively.