Inventories, Net

Inventories, Net

At December 29, 2012 and December 31, 2011, the major classes of inventory were as follows:



In thousands	December 29, 2012		December 31, 2011
Raw materials and supplies	$	41,070	$	40,248
Work in process	14,299		9,574
Finished goods	39,595		54,089
Total	$	94,964	$	103,911

Inventories are stated at the lower of cost, determined on the first-in, first-out ("FIFO") method, or fair market value. The Company performs periodic assessments to determine the existence of obsolete, slow-moving and non-saleable inventories and records necessary provisions to reduce such inventories to net realizable value. Reserve balances, primarily related to obsolete and slow-moving inventories, were $3.3 million and $2.5 million at December 29, 2012 and December 31, 2011, respectively.

As a result of the Merger, the Company increased the carrying value of inventory by $13.0 million in order to adjust to the estimated fair value in accordance with the accounting guidance for business combinations and noncontrolling interests. The step-up in inventory value was amortized into earnings over the period of the Company's normal inventory turns, which approximated two months.

- 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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