B. INVENTORIES:

The amount of inventories valued on the LIFO basis was $27,394,000 and $24,909,000 as of December 31, 2015 and 2014, respectively, and consists of housewares/small appliance finished goods. Under LIFO, inventories are valued at approximately $3,028,000 and $3,791,000 below current cost determined on a first-in, first-out (FIFO) basis at December 31, 2015 and 2014, respectively. During the years ended December 31, 2015, 2014, and 2013, $0, $7,181,000, and $421,000, respectively, of a LIFO layer was liquidated. The Company uses the LIFO method of inventory accounting to improve the matching of costs and revenues for the Housewares/Small Appliance segment.

The following table describes that which would have occurred if LIFO inventories had been valued at current cost determined on a FIFO basis:



Increase (Decrease) – (In thousands, except per share data)
Year	Cost of Sales		Net Earnings		Earnings Per Share
2015	$	763	$	(505)	$	(0.07)
2014	$	643	$	(422)	$	(0.06)
2013	$	1,941	$	(1,263)	$	(0.18)

This information is provided for comparison with companies using the FIFO basis.

Inventory for Defense, Absorbent Products, and raw materials of the Housewares/Small Appliance segments are valued under the FIFO method and total $71,228,000 and $64,149,000 at December 31, 2015 and 2014, respectively. The December 31, 2015 FIFO total is comprised of $5,191,000 of finished goods, $57,484,000 of work in process, and $8,553,000 of raw material and supplies. At December 31, 2014 the FIFO total was comprised of $5,399,000 of finished goods, $50,569,000 of work in process, and $8,181,000 of raw material and supplies.