NOTE C – Inventories

Inventories are stated at the lower of cost or market. Cost of inventories in the U.S. is determined principally by the last-in, first-out (LIFO) method. Cost of all other inventories is determined principally by the first-in, first-out (FIFO) method.

Inventories include the following:


	June 30			December 31
	2013			2012
Finished products	$	460.4		$	432.0
Work in process and raw materials		541.9			519.8

		1,002.3			951.8
Less LIFO reserve		(170.3	)		(169.4	)

	$	832.0		$	782.4

Under the LIFO method of accounting (used for approximately 48% of June 30, 2013 inventories), an actual valuation can be made only at the end of each year based on year-end inventory levels and costs. Accordingly, interim valuations are based on management’s estimates of those year-end amounts.