Inventories

Inventories consist of the following (in millions):



	Balance at year-end
	2014			2013
Raw materials and supplies	$	143.1		$	130.7
Work in process	153.5			151.5
Finished goods	43.3			41.4
	339.9			323.6
Progress payments	(11.6		)	(12.7		)
LIFO reserve	(16.5		)	(16.6		)
Total inventories, net	$	311.8		$	294.3

Inventories at cost determined on the LIFO method were $98.1 million at December 28, 2014, and $83.4 million at December 29, 2013. The remainder of the inventories using average cost or the FIFO methods, were $241.8 million at December 28, 2014, and $240.2 million at December 29, 2013. Certain inventory costs are also reflective of the estimates used in applying the percentage-of-completion revenue recognition method.

The Company recorded less than $0.1 million in LIFO income in 2014. The Company recorded $0.7 million in LIFO income in 2013 and LIFO expense of $0.1 million in 2012.

Total inventories at current cost were net of reserves for excess, slow moving and obsolete inventory of $55.3 million and $44.8 million at December 28, 2014, and December 29, 2013, respectively. Judgment is required when establishing reserves to reduce the carrying amount of inventory to market or net realizable value. Inventory reserves are recorded when inventory is considered to be excess or obsolete based upon an analysis of actual on-hand quantities on a part-level basis to forecasted product demand and historical usage.

Inventories, before progress payments, related to long-term contracts were $40.3 million and $40.7 million at December 28, 2014, and December 29, 2013, respectively. Progress payments related to long-term contracts were $1.5 million and $0.1 million at December 28, 2014, and December 29, 2013, respectively. Under the contractual arrangements by which progress payments are received, the customer has an ownership right in the inventories associated with specific contracts.