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	September 30, 2015			December 31, 2014

Raw materials	$	25,225		$	28,283
Work-in-process	23,836			19,169
Finished goods	77,877			84,020
Total	126,938			131,472
Adjust to LIFO cost	(29,104		)	(53,221		)
Lower of cost or market adjustment	—			—
Inventory, net	$	97,834		$	78,251

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 nine months of 2015, the Company did not liquidate any LIFO inventory layers established in prior years. A LIFO adjustment was recorded decreasing cost of sales by $13.3 million during the third quarter of 2015 and by $24.1 million in the first nine months of 2015. During the first six months of 2014, the Company liquidated a portion of the LIFO inventory layer in the aluminum wire pool established in prior years. This liquidation had an insignificant effect on the net income of the Company. During the third quarter of 2014, that layer was replenished. During 2014, LIFO adjustments were recorded decreasing cost of sales by $0.2 million in the third quarter and by $7.0 million in the first nine months.