INVENTORIES

Inventories consisted of the following:



	March 31, 2014			December 31, 2013			March 31, 2013
	($ in millions)
Supplies	$	42.5		$	40.5		$	37.7
Raw materials	74.0			76.5			75.1
Work in process	34.3			26.4			28.7
Finished goods	116.2			115.9			132.6
	267.0			259.3			274.1
LIFO reserve	(79.4		)	(72.8		)	(80.8		)
Inventories, net	$	187.6		$	186.5		$	193.3

Inventories are valued at the lower of cost or market. The Chlor Alkali Products and Winchester segments inventory costs are determined principally by the dollar value last-in, first-out (LIFO) method of inventory accounting. The Chemical Distribution segment inventory costs are determined principally by the first-in, first-out (FIFO) method of inventory accounting. Cost for other inventories has been determined principally by the average cost method, primarily operating supplies, spare parts and maintenance parts. Elements of costs in inventories included raw materials, direct labor and manufacturing overhead. Inventories under the LIFO method are based on annual estimates of quantities and costs as of year-end; therefore, the condensed financial statements at March 31, 2014 reflect certain estimates relating to inventory quantities and costs at December 31, 2014. The replacement cost of our inventories would have been approximately $79.4 million, $72.8 million and $80.8 million higher than reported at March 31, 2014, December 31, 2013 and March 31, 2013, respectively.