TREX COMPANY, INC. CONSOLIDATED BALANCE SHEETS December 31, 2011 2010 (In thousands) ASSETS Current Assets: Cash and cash equivalents $ 4,526 $ 27,270 Restricted cash 37,000 Accounts receivable (net of allowance for doubtful accounts of $0.3 million at December 31, 2011 and 2010) 29,192 53,332 Inventories 28,896 29,021 Prepaid expenses and other assets 2,118 1,539 Income taxes receivable 322 70 Deferred income taxes 1,004 Total current assets 102,054 112,236 Property, plant and equipment, net 115,212 126,857 Goodwill 10,558 6.837 Other assets 266 1,885 Total Assets $228,090 $247,815TREX COMPANY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31, 2011 2010 2009 (In thousands, except share and per share data) Net sales $266,789 $317,690 $272,286 Cost of sales 203,998 244,875 191,759 Gross profit 62,791 72,815 80,527 Selling, general, and administrative expenses 60,620 67,764 65,257 Impairment of long-lived assets 23,251 Income (loss) from operations 2,171 5.051 (7,981) Interest expense, net 16,364 15.288 14,699 Loss before provision for income taxes (14,193) (10,237) (22,680) Benefit for income taxes (2,605) (171) (5,811) Net loss $ (11,588) $ (10,066) $ (16,869)3 . INVENTORIES Inventories (at LIFO value) consist of the following as of December 31 (in thousands): mm 2919 Finished goods $ 29,980 $ 29,983 Raw materials 27,134 27,589 Total FIFO inventories 57,114 57,572 Reserve to adjust inventories to LIFO value l28,218 I (28,551 I Total LIFO inventories $ 28,896 $ 29,021 Inventory is stated at the lower of LIFO cost or net realizable value. The Company periodically reviews its inventory for slow moving or obsolete items and writes down the related products to estimated net realizable value. During the year ended December 31, 2009, due to the liquidation of inventories, a porlion of the Company's cost of sales is based on prior year costs rather than current year costs. As a result, the Company recognized a benet of $3.4 million in 2009. The effect of the liquidation of inventories in 201 l and 2010 on the Company's cost of sales was immaterial