Note C. Inventories

Inventories, net of LIFO, obsolete, unmarketable and slow moving reserves, are as follows:

	September 30
	2017		2016
	(In millions)
Raw materials	$	83	$	66
Work in process		2		1
Finished goods		268		237
Other		43		38
Total	$	396	$	342

Inventories valued under the LIFO method comprised approximately 7% and 8% of total inventories at September 30, 2017 and 2016, respectively. At September 30, 2017 and 2016, the LIFO reserve was $37 million and $27 million, respectively. Other inventory is comprised of certain spare parts and supplies.

During fiscal 2015, inventory quantities carried on a LIFO basis were decreased at the Company’s U.S. carbon black sites. These reductions led to liquidations of LIFO inventory quantities and resulted in an increase of Cost of sales of $1 million and a decrease in consolidated Net income of $1 million ($0.01 per diluted common share). No such reductions occurred in fiscal 2017 or 2016.

Cabot periodically reviews inventory for both obsolescence and loss of value. In this review, Cabot makes assumptions about the future demand for and market value of the inventory and, based on these assumptions, estimates the amount of obsolete, unmarketable or slow moving inventory. At September 30, 2017 and 2016, total inventory reserves were $19 million and $20 million, respectively. During fiscal year 2015, the Company recorded a lower of cost or market reserve in the amount of $6 million related to its Purification Solutions inventory held in Marshall, Texas. As of September 30, 2017, the remaining balance of this reserve was $4 million.