Note 2: Inventories

Inventories are stated at the lower of cost (determined on the weighted-average cost method) or market. Inventories consist primarily of merchandise held for sale. Inventories were comprised of the following as of March 31, 2017 and December 31, 2016:



	(in thousands)
	March 31,		December 31,
	2017		2016
Finished goods	$	59,853	$	61,949
Raw materials		1,979		2,312
Finished goods in transit		7,448		10,034
Total	$	69,280	$	74,295

The Company records provisions for losses related to shrinkage and other amounts that are otherwise not expected to be fully recoverable. These provisions are calculated based on historical shrinkage, selling price, margin and current business trends. The provision for losses related to shrinkage and other amounts was $365,000 and $163,000 as of March 31, 2017 and December 31, 2016, respectively.