Inventories

12 Months Ended

Dec. 31, 2022

We use the last-in, first-out (LIFO) method for the majority of our inventories located in the continental U.S. Other inventories are valued by the first-in, first-out (FIFO) method. FIFO cost approximates current replacement cost. Inventories measured using LIFO must be valued at the lower of cost or market. Inventories measured using FIFO must be valued at the lower of cost or net realizable value.

Inventories at December 31 consisted of the following:


	2022		2021
Finished products	$	901.2	$	761.9
Work in process	2,597.7		2,372.7
Raw materials and supplies	801.9		717.2
Total (approximates replacement cost)	4,300.8		3,851.8
Increase to LIFO cost	8.9		34.2
Inventories	$	4,309.7	$	3,886.0

Inventories valued under the LIFO method comprised $1.23 billion and $1.36 billion of total inventories at December 31, 2022 and 2021, respectively.

We recognized a net inventory impairment charge related to our COVID-19 antibodies of $339.7 million during the year ended December 31, 2021 in cost of sales in our consolidated statements of operations. As part of our response to the COVID-19 pandemic, and at the request of the U.S. and international governments, we invested in large-scale manufacturing of COVID-19 antibodies at risk, in order to ensure rapid access to patients around the world. As the COVID-19 pandemic evolved during 2021, we incurred a net inventory impairment charge primarily due to the combination of changes to demand from U.S. and international governments, including changes to our agreement with the U.S. government, and near-term expiry dates of COVID-19 antibodies.