NOTE 3 - INVENTORIES

LIFO inventories are stated at the lower of cost or market and all other inventories are stated at the lower of cost or net realizable value. Replacement cost approximates current cost and the excess over LIFO cost was approximately $103.1 million and $100.2 million at June 30, 2025 and December 31, 2024, respectively. Allowances for excess and obsolete inventory totaled $7.4 million and $6.8 million at June 30, 2025 and December 31, 2024, respectively. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels and costs at that time. Interim LIFO calculations are based on management’s estimate of expected year-end inventory levels and costs, and are subject to the final year-end LIFO inventory valuation.

Pre-tax LIFO expense was $1.9 million and $1.1 million for the three months ended June 30, 2025 and 2024, respectively, and $2.9 million and $2.1 million for the six months ended June 30, 2025 and 2024, respectively.