XML 67 R9.htm IDEA: XBRL DOCUMENT v3.22.4
INVENTORIES
 12 Months Ended
Dec. 31, 2022
INVENTORIES [Abstract]  
INVENTORIES NOTE 3: INVENTORIES

Inventories at December 31 are as follows:

in millions

2022

2021

Inventories

Finished products 1

$          439.3 

$        418.0 

Raw materials

63.4 

59.9 

Products in process

6.0 

4.2 

Operating supplies and other

70.6 

39.2 

Total

$          579.3 

$        521.3 

1

Includes inventories encumbered by volumetric production payments (see Note 2), as follows: December 31, 2022 — $3.6 million; December 31, 2021 — $2.8 million.

In addition to the inventory balances presented above, as of December 31, 2022 and December 31, 2021, we had $8.8 million and $8.5 million, respectively, of inventory classified as long-term assets (other noncurrent assets) as we do not expect to sell the inventory within one year of their respective balance sheet dates.

We use the LIFO method of valuation for most of our inventories as it results in a better matching of costs with revenues. Inventories valued under the LIFO method total $295.1 million at December 31, 2022 and $290.2 million at December 31, 2021. During 2022, 2021 and 2020, inventory reductions resulted in liquidations of LIFO inventory layers carried at costs prevailing in prior years as compared to current-year costs. The effect of the LIFO liquidation on 2022 results was to decrease cost of revenues by $4.8 million and increase net earnings by $3.5 million. The effect of the LIFO liquidation on 2021 results was to decrease cost of revenues by $0.6 million and increase net earnings by $0.4 million. The effect of the LIFO liquidation on 2020 results was to decrease cost of revenues by $0.9 million and increase net earnings by $0.6 million.

Estimated current cost exceeded LIFO cost at December 31, 2022 and 2021 by $264.7 million and $199.7 million, respectively. In periods of increasing costs, LIFO generally results in higher cost of revenues than under FIFO. In periods of decreasing costs, the results are generally the opposite. We provide supplemental income disclosures to facilitate comparisons with companies not on LIFO. The supplemental income calculation is derived by tax-affecting the change in the LIFO reserve for the periods presented. If all inventories valued at LIFO cost had been valued under first-in, first-out (FIFO) method, the approximate effect on net earnings would have been an increase of $48.1 million in 2022, an increase of $5.3 million in 2021 and an increase of $7.3 million in 2020.