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, 2018			December 31, 2017

Raw materials	$	37,470		$	32,928
Work-in-process	28,607			22,753
Finished goods	76,342			88,497
Total Inventory at FIFO cost	142,419			144,178
Adjust to LIFO cost	(46,413		)	(51,813		)
Inventory, net	$	96,006		$	92,365

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 depending on those inventory levels and costs.

In the third quarter of 2018, LIFO adjustments were recorded, decreasing cost of sales by $9.1 million, versus LIFO adjustments increasing cost of sales by $11.0 million in the third quarter of 2017. In the first nine months of 2018, LIFO adjustments were recorded, decreasing cost of sales by $5.4 million, versus LIFO adjustments increasing cost of sales by $15.0 million in the first nine months of 2017.