INVENTORIES

6 Months Ended

Jun. 30, 2020

The following table recaps the components of inventory for each period presented:


	June 30, 2020		December 31, 2019
Finished goods	$	258.7	$	308.7
Work in process	48.2		54.4
Raw materials and supplies	314.6		323.5
LIFO reserve	(47.4)		(49.9)
Total inventories, net	$	574.1	$	636.7

All inventories are stated at the lower of cost or net realizable value. We generally use standard costs which include materials, labor and production overhead at normal production capacity. The last-in, first-out (LIFO) method is primarily used to value our domestic steel-related inventories. LIFO represents approximately 40% of our inventories. For the remainder of the inventories, we principally use the first-in, first-out (FIFO) method, which is representative of our standard costs. For these inventories, the FIFO cost for the periods presented approximated expected replacement cost.

Inventories are reviewed at least quarterly for slow-moving and potentially obsolete items using actual inventory turnover and, if necessary, are written down to estimated net realizable value. Restructuring activity and decisions to narrow product offerings also impact the estimated net realizable value of inventories. We have had no material changes in inventory writedowns or slow-moving and obsolete inventory reserves in any of the years presented.

The following table contains the LIFO activity for each of the periods presented.


	Six Months Ended June 30,						Three Months Ended June 30,
	2020		2019		2020		2019
Balance, beginning of year	$	(49.9)	$	(82.2)	$	(47.9)	$	(82.2)
LIFO benefit	2.0		10.4		—		10.4
Allocated to divested businesses ¹	.5		—		.5		—
Balance, end of period	$	(47.4)	$	(71.8)	$	(47.4)	$	(71.8)

¹ During the second quarter 2020 we divested a small operation with annual external sales of approximately $10.0. No significant gain or loss was realized on the sale of this operation.