B. INVENTORIES:

The amount of inventories valued on the LIFO basis was $32,090,000 and $29,463,000 as of December 31, 2013 and 2012, respectively, and consists of housewares/small appliance finished goods. Under LIFO, inventories are valued at approximately $4,434,000 and $6,375,000 below current cost determined on a first-in, first-out (FIFO) basis at December 31, 2013 and 2012, respectively. During the years ended December 31, 2013, 2012, and 2011, $421,000, $858,000, and $5,474,000, 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
2013	$	1,941	$	(1,263)	$	(0.18)
2012	$	(857)	$	546	$	0.08
2011	$	(1,313)	$	832	$	0.12

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 $60,424,000 and $53,901,000 at December 31, 2013 and 2012, respectively. The December 31, 2013 FIFO total is comprised of $3,988,000 of finished goods, $49,690,000 of work in process, and $6,746,000 of raw material and supplies. At December 31, 2012 the FIFO total was comprised of $4,388,000 of finished goods, $40,340,000 of work in process, and $9,173,000 of raw material and supplies.