INVENTORIES

Inventories were stated at the lower of cost or market with cost determined principally on the last-in, first-out (LIFO) method. The following presents the effect on inventories, net income and net income per common share had the Company used the first-in, first-out (FIFO) inventory valuation method adjusted for income taxes at the statutory rate and assuming no other adjustments. Management believes that the use of LIFO results in a better matching of costs and revenues. This information is presented to enable the reader to make comparisons with companies using the FIFO method of inventory valuation. During 2014, certain inventories accounted for on the LIFO method were reduced, resulting in the liquidation of certain quantities carried at costs prevailing in prior years. The 2014 liquidation increased net income by $196.



	2016			2015			2014
Percentage of total inventories on LIFO	79		%	78		%	76		%
Excess of FIFO over LIFO	$	253,353		$	251,060		$	331,867
(Decrease) increase in net income due to LIFO	(1,421		)	49,658			3,230
(Decrease) increase in net income per common share due to LIFO	(.02		)	.53			.03