Inventories



	June 30, 2016			December 31, 2015
	(in millions)
Finished products	$	111.3		$	110.2
Work in process	25.9			25.6
Raw materials and supplies	49.9			49.0
	187.1			184.8
Reserve to reduce certain inventories to LIFO basis	(11.3		)	(11.3		)
Manufacturing inventories	175.8			173.5
Incurred costs relating to long-term contracts	13.0			10.9
Progress payments related to long-term contracts	(7.4		)	(6.0		)
Net balance associated with completed-contract inventories	5.6			4.9
Total inventories	$	181.4		$	178.4

Incurred costs related to long-term contracts in the table above represent inventoried work in process and finished products related to engine contracts accounted for under the completed-contract method, where costs incurred exceed customer billings.

Refer to Note 6, “Long-Term Contracts” for additional information about incurred costs and progress payments related to long-term contracts.

We use the last-in, first-out (“LIFO”) method of valuing certain of our inventories. 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. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs, which are subject to change until the final year-end LIFO inventory valuation.