Note 4. Inventories

Our inventories are primarily stated on the LIFO method, which is not in excess of market. We use the LIFO method of inventory valuation because it results in a better matching of costs and revenues. The cost of inventories stated on the first-in, first-out (“FIFO”) method is not in excess of net realizable value.

Inventories consisted of the following:


	December 31,		December 31,
	2018		2017
	(in millions)
LIFO inventories - cost on FIFO method	$	1,737.3	$	1,390.0
Cost on FIFO method higher than LIFO value		(293.6)		(21.8)
Inventories - stated on LIFO method		1,443.7		1,368.2
Inventories - stated on FIFO method		373.4		357.8
	$	1,817.1	$	1,726.0

The changes in the LIFO valuation reserve and impact of LIFO liquidations were as follows:


	Year Ended December 31,
	2018		2017		2016
	(in millions)
LIFO inventory valuation reserve adjustment charge (income)	$	271.8	$	73.3	$	(8.5)
Liquidation of LIFO inventory quantities that increased cost of sales		**		**		**

** Insignificant liquidations of LIFO inventory quantities.

Cost increases for the majority of our products were the primary cause of the 2018 and 2017 LIFO inventory valuation reserve adjustment charges. Cost decreases for the majority of our products were the primary cause of the 2016 LIFO inventory valuation reserve adjustment income.