Note 3 - Inventories

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Inventory Disclosure [Text Block]

NOTE 3 – INVENTORIES

The composition of our inventory is as follows (in millions):

	March 31,			December 31,
	2023			2022
Finished goods inventory at average cost:
Valves, automation, measurement and instrumentation	$	299		$	271
Carbon steel pipe, fittings and flanges		235			201
Gas products		291			257
All other products		146			147
		971			876
Less: Excess of average cost over LIFO cost (LIFO reserve)		(278	)		(279	)
Less: Other inventory reserves		(21	)		(19	)
	$	672		$	578

The Company uses the last-in, first-out (“LIFO”) method of valuing U.S. inventories. The use of the LIFO method has the effect of reducing net income during periods of rising inventory costs (inflationary periods) and increasing net income during periods of falling inventory costs (deflationary periods). Valuation of 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, we base interim LIFO calculations on management’s estimates of expected year-end inventory levels and costs and these estimates are subject to the final year-end LIFO inventory determination.