Inventories

9 Months Ended

Sep. 30, 2019

Note 4 - Inventories

The components of inventories at September 30, 2019 and December 31, 2018 were as follows:



	September 30, 2019			December 31, 2018
Manufacturing supplies	$	31.9		$	32.4
Raw materials	102.4			102.4
Work in process	289.0			287.7
Finished products	426.5			452.7
Subtotal	849.8			875.2
Allowance for obsolete and surplus inventory	(44.5		)	(39.5		)
Total Inventories, net	$	805.3		$	835.7

Inventories are valued at net realizable value, with approximately 56% valued on the first-in, first-out ("FIFO") method and the remaining 44% valued on the last-in, first-out ("LIFO") method. The majority of the Company's domestic inventories are valued on the LIFO method and all of the Company's international inventories are valued on the FIFO method.

The LIFO reserve at September 30, 2019 and December 31, 2018 was $173.3 million and $173.9 million, respectively. An actual valuation of the inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation.