B. INVENTORIES:

The amount of inventories valued on the LIFO basis was $24,909,000 and $32,090,000 as of December 31, 2014 and 2013, respectively, and consists of housewares/small appliance finished goods. Under LIFO, inventories are valued at approximately $3,791,000 and $4,434,000 below current cost determined on a first-in, first-out (FIFO) basis at December 31, 2014 and 2013, respectively. During the years ended December 31, 2014, 2013, and 2012, $7,181,000, $421,000, and $858,000, 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
2014	$	643	$	(422)	$	(0.06)
2013	$	1,941	$	(1,263)	$	(0.18)
2012	$	(857)	$	546	$	0.08

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 $64,149,000 and $60,424,000 at December 31, 2014 and 2013, respectively. The December 31, 2014 FIFO total is comprised of $5,399,000 of finished goods, $50,569,000 of work in process, and $8,181,000 of raw material and supplies. At December 31, 2013 the FIFO total was comprised of $3,988,000 of finished goods, $49,690,000 of work in process, and $6,746,000 of raw material and supplies.