Inventories

12 Months Ended

Dec. 31, 2011

Inventory Disclosure [Abstract]

Inventories Disclosure

Note ##INV. Inventories
Inventories at December 31, 2011 and 2010 were as follows (in millions):
	2011		2010
Raw materials and supplies	$	205.7	$	169.3
Work-in-process		1,150.0		892.8
Finished goods		199.9		126.5
Total inventories at current cost		1,555.6		1,188.6
Less allowances to reduce current cost values to LIFO basis		(153.7)		(163.0)
Progress payments		(17.6)		(1.1)
Total inventories, net	$	1,384.3	$	1,024.5

Inventories, before progress payments, determined on the last-in, first-out (“LIFO”) method were $987.1 million at December 31, 2011, and $844.2 million at December 31, 2010. The remainder of the inventory was determined using the first-in, first-out (“FIFO”) and average cost methods, and these inventory values do not differ materially from current cost. The effect of using the LIFO methodology to value inventory, rather than FIFO, decreased cost of sales in 2011 by $9.3 million. In 2010 the impact of using the LIFO methodology, rather than FIFO, increased costs of sales by $60.2 million while in 2009 the impact was a decrease to cost of sales in the amount $102.8 million.

During 2011, 2010, and 2009, inventory usage resulted in liquidations of LIFO inventory quantities. These inventories were carried at differing costs prevailing in prior years as compared with the cost of current manufacturing cost and purchases. The effect of these LIFO liquidations was to increase cost of sales by $0.1 million in 2011, decrease cost of sales by $1.8 million in 2010 and increase cost of sales by $1.8 million in 2009.