Inventories, Net

Inventories, Net

At December 28, 2013 and December 29, 2012, the major classes of inventory were as follows:



In thousands	December 28, 2013		December 29, 2012
Raw materials and supplies	$	55,544	$	41,070
Work in process	19,102		14,299
Finished goods	81,719		39,595
Total	$	156,365	$	94,964

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 $3.3 million at December 28, 2013 and December 29, 2012, respectively.

As a result of the acquisition of Fiberweb, the Company increased the carrying value of inventory by $9.3 million in order to adjust to estimated fair value in accordance with the accounting guidance for business combinations. The preliminary change in the fair value of the assets were based on computations which considered many factors including the estimated selling price of the inventory, the cost to dispose of the inventory as well as the replacement cost of the inventory, where applicable. The step-up in inventory value will be amortized into earnings over the period of the Company's normal inventory turns, which approximated two months. As of December 28, 2013, the remaining amount to be amortized into earnings is $2.3 million.

- 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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