Question-and-Answer Session
Operator: (Operator Instructions). And your first question comes from the line of Terry Bivens with JP Morgan. Please proceed with your question.
Terry Bivens - JP Morgan
Good morning everyone.
Patricia Woertz
Good morning Terry.
Terry Bivens - JP Morgan
I have two things this morning. Just in terms of the LIFO charge, a bit bigger than we were looking for. Can you break that down, was it more the composition of the inventories or the level of the inventories?
Steven Mills
Well Terry this calculation and this decline was principally priced. We don't adjust the volumes on a quarter-to-quarter basis for this calculation based on how the rules dictate how we do LIFO. So this is strictly a price decline in our LIFO based inventories?
Terry Bivens - JP Morgan
Okay. Then just in terms of cash on the balance sheet. Obviously there is quite a bit here. How would you characterize that Steve, is that more a measure of just prudence here or there has always been the question obviously as to why more -- there isn't more aggressive share repurchase and I know you guys are always on the look out for acquisitions. If you kind of give us your view on the need and the likelihood that the cash levels will stay where they are now?
Steven Mills
That's a good question Terry and the conservative folks here indicator like to have a little cash on the balance sheet to start with. We know we have a business that does have volatility from time-to-time. From the share repurchase perspective we've commented several times that the rating agencies have, in our discussions with the rating agencies, they have agreed for us to be able to be able to maintain our rating work at that and that share buybacks are going to be put on the shelf for the time being until we have a little more certainty over the future of commodity prices. So we've got cash on the balance sheet as you know most of that's build up here just recently and we've got it therefore whatever uses we needed it for.
Terry Bivens - JP Morgan
Okay. Very good, I'll pass it along. Thank you.
Patricia Woertz
Thanks, Terry.
Operator
Your next question comes from the line Christine McCracken with Cleveland Research. Please proceed with your question.
Christine McCracken - Cleveland Research
Good morning.
Steven Mills
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