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Inventories

12 Months Ended

Dec. 31, 2023

Inventories

Note 4. Inventories

Our inventories are primarily stated on the LIFO method, which is not in excess of market. We use the LIFO method of inventory valuation because it results in a better matching of costs and revenues. The cost of inventories stated on the first-in, first-out (“FIFO”) method is not in excess of net realizable value.

Inventories consisted of the following:


				December 31,			December 31,
				2023			2022

				(in millions)
LIFO inventories—cost on FIFO method				$	2,087.3		$	2,257.9
Cost on FIFO method higher than LIFO value					(579.3)			(743.8)
Inventories—stated on LIFO method					1,508.0			1,514.1
Inventories—stated on FIFO method					535.2			481.2
				$	2,043.2		$	1,995.3

The changes in the LIFO inventory valuation reserve were as follows:


	Year Ended December 31,
	2023			2022			2021

	(in millions)
LIFO inventory valuation reserve (income) expense	$	(164.5)		$	(76.6)		$	704.8

Cost decreases for the majority of our products were the primary cause of the 2023 and 2022 LIFO inventory valuation reserve change resulting in a credit, or income. Cost increases for the majority of our products were the primary cause of the 2021 LIFO inventory valuation reserve change resulting in a charge, or expense. There were insignificant liquidations of LIFO inventory quantities for all years presented.