3. Inventories

Inventories consist mainly of paper stock, editorial content, books, and other merchandise and are stated at the lower of cost or estimated net realizable value. Cost is determined using the first-in, first-out method for books and weighted average cost method for paper and other merchandise.

Effective January 1, 2018, the Company prospectively changed its method of accounting for paper inventory from the last-in, first-out (LIFO) method to the weighted average cost method. Of total net inventory values shown 65 percent at June 30, 2017, were determined using the LIFO method. LIFO inventory income included in the Consolidated Statements of Earnings was $1.3 million in fiscal 2018, $1.7 million in fiscal 2017, and $0.7 million in fiscal 2016.



June 30,	2018		2017
(In millions)
Raw materials	$	32.1	$	13.4
Work in process	9.6		8.7
Finished goods	2.5		1.1
	44.2		23.2
Reserve for LIFO cost valuation	—		(1.3		)
Inventories	$	44.2	$	21.9