Note 3 - Inventories

The components of inventories were as follows:



	March 31, 2016			December 31, 2015
Manufacturing supplies	$	29.6		$	24.7
Raw materials	57.8			58.8
Work in process	182.5			181.9
Finished products	301.6			296.2
Subtotal	571.5			561.6
Allowance for obsolete and surplus inventory	(20.2		)	(18.4		)
Total Inventories, net	$	551.3		$	543.2

Inventories are valued at the lower of cost or market, with approximately 54% valued by the first-in, first-out (FIFO) method and the remaining 46% valued by the last-in, first-out (LIFO) method. The majority of the Company's domestic inventories are valued by the LIFO method and all of the Company's international (outside the United States) inventories are valued by the FIFO method.

An actual valuation of the inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation.

The LIFO reserves at March 31, 2016 and December 31, 2015 were $183.6 million and $188.1 million, respectively. The Company recognized a decrease in its LIFO reserve of $4.5 million during the first three months of 2016, compared to an increase in its LIFO reserve of $1.9 million during the first three months of 2015.