text: Inventory Analysis 
  
  Inventories are valued at the lower of cost or market, using the 
  
  last-in, first-out (LIFO) method for U.S. inventories and the 
  
  average cost method for foreign inventories. Management uses 
  
  an inventory turnover ratio to monitor and evaluate inventory. 
  
  Management calculates this ratio on an annual as well as a 
  
  quarterly basis and uses inventory valued at current costs. The 
  
  annualized inventory turnover (using current costs) for the period 
  
  ended June 30, 2012 was 4.6 versus 4.7 at June 30, 2011. We 
  
  believe our inventory turnover ratio in fiscal 2013 will remain 
  
  similar to the fiscal 2012 levels. 