LIFO Liquidation

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LIFO Liquidation

A situation in which a company using LIFO accounting sells its oldest inventory. Under LIFO accounting, inventory purchased last is treated as if it is sold first. Thus, LIFO liquidation occurs when a company appears to sell the inventory it purchased first. This may not be the actual inventory it purchased first but is treated as such for accounting purposes. LIFO liquidation happens when the company's sales outpace its purchases for inventory.
References in periodicals archive ?
Adjusted EBITDA does not reflect the Company's net realized and unrealized losses and gains on derivatives and any LIFO liquidations of its precious metal inventory;
The Company defines Adjusted EBITDA as net income or loss from continuing operations before the effects of realized and unrealized gains or losses on derivatives, interest expense, taxes, depreciation and amortization, LIFO liquidation gain, and non-cash pension expense or credit, and excludes certain non-recurring and non-cash items.
17) LIFO liquidations can always be "managed" to accommodate or mitigate undesirable tax consequences.
Further, and very significantly, the LIFO transgression is "buried" in prior layers, provided that a LIFO liquidation does not occur after the method change has been effected.
EBITDA does not reflect the Company's net realized and unrealized losses on derivatives and LIFO liquidations of its precious metal inventory;
Significant unusual adjustments that occurred in the nine months ended September 30, 2008 were the LIFO liquidation gain of $2.
Adjusted EBITDA does not reflect the Company's net realized and unrealized losses and gains on derivatives and LIFO liquidations of its precious metal inventory;
Production Equipment Group's results for the quarter were below last year's because of a decline in LIFO liquidations between quarters.
6 million from the liquidation of precious metal inventories valued at LIFO, as compared to a non-cash LIFO liquidation gain of $3.