Inventories

9 Months Ended

Sep. 30, 2022

Note 8 - Inventories

The components of inventories at September 30, 2022 and December 31, 2021 were as follows:


	September 30, 2022		December 31, 2021
Manufacturing supplies	$	39.7	$	38.0
Raw materials	115.9		121.8
Work in process	454.8		418.4
Finished products	588.2		527.8
Subtotal	1,198.6		1,106.0
Allowance for obsolete and surplus inventory	(66.0)		(63.3)
Total inventories, net	$	1,132.6	$	1,042.7

Inventories are valued at net realizable value, with approximately 56% valued on the first-in, first-out ("FIFO") method and the remaining 44% valued on the last-in, first-out ("LIFO") method. The majority of the Company's domestic inventories are valued on the LIFO method, and all the Company's international inventories are valued on the FIFO method.

The LIFO reserve at September 30, 2022 and December 31, 2021 was $229.1 million and $199.4 million, respectively. 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 are 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.