INVENTORIES

We state our inventories at the lower of cost or market. The cost of worldwide inventories is determined using the FIFO method. When we determine that our gross inventories exceed usage requirements, or if inventories become obsolete or otherwise not saleable, we record a provision for such loss as a component of our inventory accounts.

Inventories consist of the following:



	September 30, 2011			December 31, 2010
	(in millions)

Raw materials and work-in-progress	$	163.1		$	137.7
Finished goods	24.1			20.3
Gross inventories	187.2			158.0
Inventory valuation reserves	(29.5		)	(27.7		)
Inventories, net	$	157.7		$	130.3