Inventories, Net

12 Months Ended

Dec. 31, 2014

The components of net inventories were as follows as of December 31, (in millions):



	2014		2013
Materials and supplies	$	117.9	$	123.5
Work in process	104.5		107.0
Finished products	486.1		453.9
	$	708.5	$	684.4

Inventory costs include direct materials, direct labor and manufacturing overhead, or when finished goods are sourced, the cost is the amount paid to the third party. Cost of certain domestic inventories (approximately 53.3% and 51.8% of gross inventory costs at December 31, 2014 and 2013, respectively) was determined by the LIFO method; for the balance, cost was determined using the FIFO method. As of December 31, 2014 and 2013, LIFO reserves were $30.8 million and $34.2 million, respectively. The pretax income from continuing operations recognized by the Company related to the liquidation of LIFO-based inventories in 2014, 2013 and 2012 was $7.2 million, $6.5 million and $3.2 million, respectively.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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