Note 4. Inventories

12 Months Ended

May 31, 2012

4. INVENTORY

Typically inventories are stated at the lower of cost (first-in, first-out basis) or market (net realizable value). However, in relation to the Acquisition on August 19, 2011, a fair value adjustment of $24.4 million increased inventory to fair value, which was greater than replacement cost. As of May 31, 2012, all of the fair value adjustment has been expensed through cost of sales in the Successor fiscal 2012 period and inventories are again stated at the lower of cost (first-in, first-out basis) or market (net realizable value).

	Successor		Predecessor
	May 31, 2012		May 31, 2011
	(in thousands)

Raw materials and supplies	$	10,228	$	9,506
Work in process		3,550		4,012
Finished goods		19,592		19,396
	$	33,370	$	32,914

- 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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