The components of inventories at December 31, 2015 and 2014 were as follows:



	2015			2014
Manufacturing supplies	$	24.7		$	25.0
Raw materials	58.8			51.3
Work in process	181.9			219.3
Finished products	296.2			302.7
Subtotal	$	561.6		$	598.3
Allowance for surplus and obsolete inventory	(18.4		)	(12.8		)
Total Inventories, net	$	543.2		$	585.5

Inventories at December 31, 2015 valued on the FIFO cost method were 53% and the remaining 47% were valued by the LIFO method. If all inventories had been valued at FIFO, inventories would have been $188.1 million and $199.7 million greater at December 31, 2015 and 2014, respectively. The Company recognized a decrease in its LIFO reserve of $11.6 million during 2015, compared to an increase in its LIFO reserve of $0.4 million during 2014.

During the third quarter of 2014, the Company recorded an inventory valuation adjustment of $18.7 million related to its former Aerospace segment. The Company recorded this adjustment during the third quarter of 2014 as a result of the announcement of a plan to exit the engine overhaul business, as well as other product lines and lower than expected future sales. The Company disposed of the related inventory during the fourth quarter of 2014.

The Company realized income of $1.7 million as a result of a LIFO inventory liquidation during 2015.