The components of inventories at December 31, 2014 and 2013 were as follows:



	2014			2013
Manufacturing supplies	$	25.0		$	26.8
Raw materials	51.3			62.3
Work in process	219.3			199.2
Finished products	302.7			312.7
Subtotal	$	598.3		$	601.0
Allowance for surplus and obsolete inventory	(12.8		)	(18.4		)
Total Inventories, net	$	585.5		$	582.6

Inventories valued on the FIFO cost method were 52% and the remaining 48% were valued by the LIFO method. If all inventories had been valued at FIFO, inventories would have been $199.7 million and $199.3 million greater at December 31, 2014 and 2013, respectively. The Company recognized an increase in its LIFO reserve of $0.4 million during 2014, compared to a decrease in its LIFO reserve of $3.8 million during 2013.

During the third quarter of 2014, the Company recorded an inventory valuation adjustment of $18.7 million related to its former Aerospace segment. The Company recorded this adjustment during the third quarter of 2014 as a result of the announcement of a plan to exit the engine overhaul business, as well as other product lines, and lower than expected future sales. The Company disposed of the related inventory during the fourth quarter of 2014.