Inventories

Inventories are stated at current cost net of reserves for excess, slow moving and obsolete inventory, less progress payments. Inventories are valued under the FIFO method, LIFO method and average cost method. Inventories at cost determined on the average cost or the FIFO methods were $342.5 million at September 30, 2018 and $348.6 million at December 31, 2017. The remainder of the inventories using the LIFO method were $44.4 million at September 30, 2018 and $63.6 million at December 31, 2017. Interim LIFO calculations are based on the Company’s estimates of expected year-end inventory levels and costs since an actual 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. Because these estimates are subject to many factors beyond the Company’s control, interim results are subject to the final year-end LIFO inventory valuation.



	Balance at
Inventories (in millions):	September 30, 2018			December 31, 2017
Raw materials and supplies	$	204.4		$	200.2
Work in process	128.4			157.9
Finished goods	54.1			54.1
	386.9			412.2
Progress payments	—			(1.4		)
Reduction to LIFO cost basis	(9.3		)	(10.6		)
Total inventories, net	$	377.6		$	400.2