Inventories

Inventories consist of the following (in millions):



	Balance at year-end
	2012			2011
Raw materials and supplies	$	129.4		$	107.3
Work in process	145.9			104.9
Finished goods	30.5			28.0
	305.8			240.2
Progress payments	(7.3		)	(3.4		)
LIFO reserve	(17.3		)	(17.4		)
Total inventories, net	$	281.2		$	219.4

Inventories at cost determined on the LIFO method were $91.5 million at December 30, 2012 and $96.0 million at January 1, 2012. The remainder of the inventories using average cost or the FIFO methods, were $214.3 million at December 30, 2012 and $144.2 million at January 1, 2012.

The Company recorded less than $0.1 million in LIFO income in 2012. The Company recorded LIFO expense of $0.9 million in 2011 and LIFO income of $0.8 million in 2010.

Total inventories at current cost were net of reserves for excess, slow moving and obsolete inventory of $42.0 million and $42.0 million at December 30, 2012, and January 1, 2012, respectively.

Inventories, before progress payments, related to long-term contracts were $40.8 million and $34.1 million at December 30, 2012, and January 1, 2012, respectively. Progress payments related to long-term contracts were $1.3 million and $1.5 million at December 30, 2012 and January 1, 2012, respectively. Under the contractual arrangements by which progress payments are received, the customer has an ownership right in the inventories associated with specific contracts.