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 expense was $2.2 million for the quarter ended March 31, 2022 compared to $83.8 million during the quarter ended March 31, 2021. LIFO expense for the quarter ended March 31, 2021 as compared to the quarter ended March 31, 2022 is higher due to a significant increase in metal prices, which occurred in the quarter ended March 31, 2021 as compared to pricing changes forecasted for December 2022.

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

	March 31,		December 31,
	2022		2021
	(In millions)
In process and finished products	$	839.1	$	832.1

If current cost had been used to value inventories, such inventories would have been $305 million and $303 million higher than reported at March 31, 2022 and December 31, 2021, respectively. Approximately 88% of inventories are accounted for under the LIFO method at March 31, 2022 and December 31, 2021. 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 $8.6 million and $8.8 million at March 31, 2022 and December 31, 2021, respectively.