Note 4 - Inventories

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Inventory Disclosure [Text Block]

NOTE 4 – INVENTORIES

The composition of our inventory is as follows (in millions):

		*June 30,*				*December 31,*
		*2025*				*2024*
Finished goods inventory at average cost:
Valves, automation, measurement and instrumentation		$	221			$	206
Carbon steel pipe, fittings and flanges			153				135
Gas products			281				265
All other products			143				104
			798				710
Less: Excess of weighted-average cost over LIFO cost (LIFO reserve)			(291	)			(280	)
Less: Other inventory reserves			(17	)			(15	)
		$	490			$	415

The Company uses the last-in, first-out (“LIFO”) method of valuing U.S. inventories. The use of the LIFO method has the effect of reducing net income during periods of rising inventory costs (inflationary periods) and increasing net income during periods of falling inventory costs (deflationary periods). Valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, we base interim LIFO calculations using current month end perpetual inventory balances, except in those instances where better information regarding projected year-end balances is available.