Inventories, Net

3 Months Ended

Mar. 31, 2023

Inventories, net are valued at the lower of cost (using the first-in, first-out and weighted average methods) or net realizable value. The Company's costs included in inventory primarily include resins, pulp, chemicals, direct labor, utilities, maintenance, depreciation, finishing supplies and an allocation of certain overhead costs. Machine start-up costs or abnormal machine shutdowns are expensed in the period incurred and are not reflected in inventory. The Company reviews inventories at least quarterly to determine the necessity of write-offs for excess, obsolete or unsalable inventory. The Company estimates write-offs for inventory obsolescence and shrinkage based on its judgment of future realization. These reviews require the Company to assess customer and market demand. During the three months ended March 31, 2023, there were no material inventory write-offs.

The following table summarizes inventories by major class (in millions):




	March 31, 2023		December 31, 2022
Raw materials	$	203.5	$	206.0
Work in process	88.1		80.5
Finished goods	231.8		223.9
Supplies and other	21.0		24.5
Total inventories	$	544.4	$	534.9