Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Inventories

v3.19.1
Note 6 - Inventories
3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Inventory Disclosure [Text Block]
6.
Inventories
 
Inventories were as follows:
 
   
As of
(in millions)
 
March 31, 2019
 
December 31, 2018
Raw materials and supplies
  $
25.5
 
  $
31.9
 
Work-in-process
   
70.9
 
   
72.9
 
Finished goods
   
120.0
 
   
113.4
 
Total inventories
  $
216.4
 
  $
218.2
 
 
Inventories include costs attributable to direct labor and manufacturing overhead, but are primarily comprised of metal costs. The metals component of inventories that is valued on a LIFO basis comprised
63%
and
67%
of total inventory at
March 31, 2019
and
December 31, 2018
, respectively. Other manufactured inventories, including the direct labor and manufacturing overhead components and certain non-U.S. inventories, are valued on a
first
-in,
first
-out (“FIFO”) basis.
 
During the 
three
months ended
March 31, 2019
and
2018
, we recorded adjustments for certain domestic metal inventory from the fluctuations in market value of these metals. For the 
three
months ended
March 31, 2019
and
2018
, these adjustments decreased cost of sales by
$2.8
million and
$0.9
million, respectively.
 
Below is a summary of inventories valued at period-end market values compared to the as reported values:
 
   
As of
(in millions)
 
March 31, 2019
 
December 31, 2018
Market value
  $
312.3
 
  $
296.5
 
As reported
   
216.4
 
   
218.2
 
Excess of market over reported value
  $
95.9
 
  $
78.3