Note 3 - Inventories

3 Months Ended

Mar. 31, 2024

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,
	2024			2023
Finished goods inventory at average cost:
Valves, automation, measurement and instrumentation	$	258		$	274
Carbon steel pipe, fittings and flanges		182			193
Gas products		273			266
All other products		131			126
		844			859
Less: Excess of average cost over LIFO cost (LIFO reserve)		(283	)		(282	)
Less: Other inventory reserves		(15	)		(17	)
	$	546		$	560

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.