Inventories

3 Months Ended

Mar. 31, 2013

NOTE 2 – INVENTORIES

Inventories are stated at the lower of cost, determined by the last-in, first-out (LIFO) method, or market.

Inventories consist of the following:


In Thousands of Dollars	March 31, 2013			December 31, 2012
Raw materials	$	16,333		$	26,013
Work-in-process		29,004			22,309
Finished goods		84,861			88,750

Total		130,198			137,072
Adjust to LIFO cost		(75,830	)		(73,416	)
Lower of cost or market adjustment		—			—

Inventory, net	$	54,368		$	63,656

LIFO pools are established at the end of each fiscal year. During the first three quarters of every year, LIFO calculations are based on the inventory levels and costs at that time. Accordingly, interim LIFO balances will fluctuate up and down in tandem with inventory levels and costs.

During the first quarter of 2013, the Company liquidated a portion of the layer established in 2011. As a result, under the LIFO method, this inventory layer was liquidated at historical costs that were higher than current costs, which negatively impacted net income for the first quarter of 2013 by $1,384,000. During the first quarter of 2012 the Company did not liquidate any LIFO inventory layers established in prior years.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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