B. INVENTORIES:

The amount of inventories valued on the LIFO basis was $30,159,000 and $35,095,000 as of December 31, 2011 and 2010, respectively, and consists of housewares/small appliance finished goods. Under LIFO, inventories are valued at approximately $5,518,000 and $4,205,000 below current cost determined on a first-in, first-out (FIFO) basis at December 31, 2011 and 2010, respectively. During the years ended December 31, 2011, 2010, and 2009, $5,474,000, $601,000, and $892,000, 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
2011	$	(1,313	)	$	832		$	0.12
2010	$	(1,850	)	$	1,169		$	0.17
2009	$	2,082		$	(1,357	)	$	(0.20	)

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 first-in, first-out method and total $64,347,000 and $48,037,000 at December 31, 2011 and 2010, respectively. The December 31, 2011 FIFO total is comprised of $2,600,000 of finished goods, $50,462,000 of work in process, and $11,285,000 of raw material and supplies. At December 31, 2010 the FIFO total was comprised of $2,049,000 of finished goods, $37,040,000 of work in process, and $8,948,000 of raw material and supplies.