Inventories, Net

12 Months Ended

Dec. 31, 2016

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



	2016		2015
Materials and supplies	$	350.7	$	117.3
Work-in-process	236.1		108.0
Finished products	1,529.2		496.5
	$	2,116.0	$	721.8

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. Approximately 17.5% and 51.3% of gross inventory costs at December 31, 2016 and 2015, respectively, were determined by the last-in, first-out (“LIFO”) method; for the balance, cost was determined using the first-in, first-out (“FIFO”) method. As of December 31, 2016 and 2015, LIFO reserves were $16.6 million and $23.6 million, respectively. The pretax income from continuing operations recognized by the Company related to the liquidation of LIFO-based inventories in 2016, 2015 and 2014 was $2.9 million, $1.5 million and $7.2 million, respectively.