Inventories

Inventories are stated at lower of cost or net realizable value. U.S. inventories are valued using the last-in, first-out (“LIFO”) method and represented approximately $44.2 million, or 38.6%, and $47.6 million, or 45.9%, of gross inventories at February 28, 2019 and November 30, 2018, respectively. The remaining portion of inventories, which are located outside of the U.S., are valued using the first-in, first-out (“FIFO”) or an average cost method. Interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to final year-end LIFO inventory valuations. Inventory costs include material, labor, and overhead. Inventories, net, consisted of the following:



	February 28, 2019			November 30, 2018
	(Dollars in millions)
Raw materials and supplies	$	35.1		$	35.0
Work-in-process	6.0			5.3
Finished goods	73.4			63.5
Inventories, gross	114.5			103.8
LIFO reserve	(17.3		)	(18.1		)
Obsolescence reserve	(7.5		)	(6.9		)
Inventories, net	$	89.7		$	78.8