Inventories, Net

12 Months Ended

Dec. 31, 2017

FOOTNOTE 6

Inventories, Net

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


	2017		2016
Raw materials and supplies	$	419.6	$	350.7
Work-in-process		252.5		236.1
Finished products		1,826.7		1,529.2

Total inventories	$	2,498.8	$	2,116.0

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 19.9% and 17.5% of gross inventory costs at December 31, 2017 and 2016, 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, 2017 and 2016, LIFO reserves were $13.6 million and $16.6 million, respectively. The pretax income from continuing operations recognized by the Company related to the liquidation of LIFO-based inventories in 2017, 2016 and 2015 was $1.4 million, $2.9 million and $1.5 million, respectively.