NOTE 4 – INVENTORIES:

	2017		2016
Raw materials	$	24,249	$	23,964
Work-in-progress		42,840		29,198
Finished goods		24,083		20,046
Supplies		16,389		10,371
Inventories	$	107,561	$	83,579

At December 31, 2017, and 2016, approximately 42% and 45%, respectively, of the inventories were valued using the LIFO method. The LIFO reserve approximated $(16,063) and $(15,139) at December 31, 2017, and 2016, respectively. During each of the years, inventory quantities decreased for certain locations resulting in a liquidation of LIFO layers which were at lower costs. The effect of the liquidations was to decrease costs of products sold (excluding depreciation and amortization) by approximately $490, $936 and $216 for 2017, 2016 and 2015, respectively. There was no income tax expense recognized in the consolidated statements of operations for 2017 and 2016, due to the Corporation having a valuation allowance recorded against its deferred income tax assets for the jurisdiction where the income was recognized. See Note 15. Accordingly, the effect of the liquidations reduced net loss by approximately $490, or $0.04 per common share, for 2017, $936, or $0.08 per common share, for 2016, and increased net income by approximately $141, or $0.01 per common share, for 2015.