INVENTORIES

9 Months Ended

Sep. 30, 2020

Note 9. Inventories


	September 30, 2020		December 31, 2019
Raw materials	$	1,081	$	1,056
Work in process	850		817
Finished products	2,774		2,593
	4,705		4,466
Reduction to LIFO cost basis	—		(45)
	$	4,705	$	4,421

During the third quarter of 2020, the Company changed the method of valuing inventory from the last-in, first-out (LIFO) method to the first-in, first-out (FIFO) method for inventories within our Performance Materials and Technologies segment not previously valued using FIFO. The Company believes the FIFO method is preferable and better reflects the current value of inventory reported in the Consolidated Balance Sheet. The cumulative effect of this change in accounting principle was $7 million and was recorded as a reduction to Cost of products sold for the three months ended September 30, 2020. The inventories subject to this change totaled approximately 6 percent of consolidated inventories. This change was not material to the Consolidated Financial Statements, therefore prior periods were not adjusted retrospectively.