Inventories

12 Months Ended

Dec. 31, 2019

Inventories

Inventories

Note 4 - Inventories

The following table is a summary of inventories:

	December 31,
(Millions of dollars)	2019		2018
At lower of LIFO cost or market:
Hogs and materials	$	387	$	361
Fresh pork and materials		46		36
LIFO adjustment		(64)		(58)
Total inventories at lower of LIFO cost or market		369		339
At lower of FIFO cost and net realizable value:
Grains, oilseeds and other commodities		353		229
Sugar produced and in process		17		17
Other		109		81
Total inventories at lower of FIFO cost and net realizable value		479		327
Grain, flour and feed at lower of weighted average cost and net realizable value		174		149
Total inventories	$	1,022	$	815

The use of the LIFO method for certain inventories of the Pork segment decreased net earnings $5 million ($4.10 per common share), $20 million ($16.87 per common share) and $6 million ($5.40 per common share) for the years ended December 31, 2019, 2018 and 2017, respectively, after taxes were considered. If the FIFO method had been used for all inventories of the Pork segment, inventories would have been higher by $64 million and $58 million as of December 31, 2019 and 2018, respectively. The LIFO valuation reserve activity for 2019, 2018 and 2017 was as follows:

	Balance at		Increase	Balance at
(Millions of dollars)	beginning of year		(decrease)	end of year
Reserve for LIFO Valuation:
Year Ended December 31, 2019	$	58	6	$	64
Year Ended December 31, 2018	$	31	27	$	58
Year Ended December 31, 2017	$	21	10	$	31