Note 6. Inventories

The components of inventories are as follows:

The valuation allowance to write inventory down to its net realizable value was $17.8 million as of March 31, 2025 and $17.6 million as of December 31, 2024.

In December 2023, a third-party warehouse in Tennessee used to store some of the Company’s leaf tobacco incurred significant tornado damage resulting in damage to the leaf tobacco. The leaf tobacco inventory is covered by the Company’s stock throughput insurance policy and the Company believes the inventory loss is probable of being fully recovered under the policy. As a result, the Company recorded a $15.2 million receivable related to its leaf tobacco inventory which is included in Other current assets on the consolidated balance sheets.