The Company primarily uses the last-in, first-out (LIFO) method of valuing inventory. In the first quarter of 2022, we changed the method we use to estimate LIFO on an interim basis. This is a change in accounting estimate that is inseparable from a change in accounting principle. Historically, interim LIFO calculations were based on actual inventory levels and costs at each interim period. In the first quarter of 2022, we elected to recognize the interim effects of the LIFO inventory valuation method by projecting expected year-end inventory levels and LIFO costs and allocating that projection to the interim quarters on a pro-rata basis.

The change in the LIFO calculation method impacts all profit-based metrics as well as inventories for interim periods. Our annual LIFO calculation will be consistent with prior years and as such, year-end amounts will not be impacted. We believe this change is preferable as it results in a better estimate of LIFO for the full year, creates less volatility in earnings on an interim basis, and makes our results more comparable to our peers. LIFO income was $71.6 million for the six months ended June 30, 2022 compared to LIFO expense of $188.6 million during the six months ended June 30, 2021. LIFO income for the six months ended June 30, 2022 as compared to the LIFO expense in the six months ended June 30, 2021 is a result of decreasing forecasted prices for December 2022 as compared to significantly increasing prices in 2021.

Inventories, at stated LIFO value, were classified at June 30, 2022 and December 31, 2021 as follows:


	June 30,		December 31,
	2022		2021
	(In millions)
In process and finished products	$	1,012.3	$	832.1

If current cost had been used to value inventories, such inventories would have been $232 million and $303 million higher than reported at June 30, 2022 and December 31, 2021, respectively. Approximately 90% and 88% of inventories are accounted for under the LIFO method at June 30, 2022 and December 31, 2021, respectively. Non-LIFO inventories consist primarily of inventory at our foreign facilities using the moving average cost and the specific cost methods. Substantially all of our inventories consist of finished products.

The Company has consignment inventory at certain customer locations, which totaled $8.3 million and $8.8 million at June 30, 2022 and December 31, 2021, respectively.