INVENTORIES

6 Months Ended

Jun. 30, 2021

NOTE 5. INVENTORIES

Inventories consisted of the following:


	June 30, 2021		December 31, 2020		June 30, 2020
	($ in millions)
Supplies	$	115.0	$	113.8	$	111.6
Raw materials	145.1		116.3		64.6
Work in process	145.1		133.2		94.0
Finished goods	420.9		359.6		392.7
Inventories excluding LIFO reserve	826.1		722.9		662.9
LIFO reserve	(89.6)		(48.2)		(43.8)
Inventories, net	$	736.5	$	674.7	$	619.1

Inventories are valued at the lower of cost and net realizable value. For U.S. inventories, inventory costs are determined principally by the last-in, first-out (LIFO) method of inventory accounting while for international inventories, 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 June 30, 2021 reflect certain estimates relating to inventory quantities and costs at December 31, 2021. The replacement cost of our inventories would have been approximately $89.6 million, $48.2 million and $43.8 million higher than reported at June 30, 2021, December 31, 2020 and June 30, 2020, respectively.