Inventories

12 Months Ended

Dec. 31, 2011

Inventories [Abstract]

Inventories

Note 9. Inventories

Inventories consist of the following:

	December 31,
	2011			2010
	(Dollars in millions)
Average or actual cost (which approximates current costs):
Finished products	$	220.8		$	224.4
In-process		2,360.6			1,866.1
Raw materials and supplies		753.7			692.8
		3,335.1			2,783.3
Less:
Reserve to reduce certain inventories to LIFO basis		(54.2	)		(52.7	)
Progress payments and advances		(404.3	)		(281.2	)
Total	$	2,876.6		$	2,449.4

Approximately 6% of the inventory costs were determined under the LIFO method of accounting at December 31, 2011 and 2010. All other inventory costs were determined under the FIFO method of accounting. LIFO reserve adjustments, recorded as costs of sales, were a $1.5 million loss, $1 million loss and $5 million gain for 2011, 2010 and 2009, respectively. The Company uses the LIFO method of valuing inventory for certain of the Company’s legacy aerospace manufacturing businesses, primarily the aircraft wheels and brakes business unit in the Actuation and Landing Systems segment.

Progress payments and advances represent (1) non-refundable payments for work-in-process and (2) cash received from government customers where the government has legal title to the work-in-process.

At December 31, 2011 and 2010, the amount of inventory consigned to customers and suppliers was approximately $61 million and $65 million, respectively.

In-process inventories which include pre-production and excess-over-average inventory accounted for under long-term contract accounting and engineering costs with a guaranteed right of recovery, are summarized by platform as follows (dollars in millions, except quantities which are number of aircraft or number of engines if the engine is used on multiple aircraft platforms):

December 31, 2011

															In-Process Inventory
	Aircraft Order Status(1)						Company Order Status										Pre- Production and Excess- Over- Average
			(Unaudited)								(Unaudited)
	Delivered To Airlines		Unfilled Orders		Unfilled Options		Contract Quantity (2)		Delivered		Firm Unfilled Orders(3)		Year Complete(4)		Production				Total
Aircraft Platforms — number of aircraft
787		3		857		232		2,818		29		29		2030	$	257.9	$	755.6	$	1,013.5
A350 XWB		—		555		185		1,884		—		—		2030		7.1		303.8		310.9
7Q7		—		—		—		19		2		—		2018		0.1		27.1		27.2
Engine Type —number of engines (engines are used on multiple aircraft platforms)
CF34-10		954		394		766		1,316		1,052		190		2013		10.3		11.8		22.1
Trent 900		144		272		88		945		227		161		2025		32.7		17.3		50.0
PW 1000G — MRJ		—		130		120		678		—		—		2029		—		113.9		113.9
PW 1000G — C Series		—		266		238		2,476		—		—		2028		0.3		197.2		197.5
Other																115.1		80.3		195.4
Total in-process inventory related to long-term contracts under the contract accounting method of accounting																423.5		1,507.0		1,930.5
A380 engineering costs recoverable under long-term contractual arrangements																27.1		21.8		48.9
Other in-process inventory																348.3		32.9		381.2
Total																375.4		54.7		430.1
Balance at December 31, 2011															$	798.9	$	1,561.7	$	2,360.6

December 31, 2010

															In-Process Inventory
	Aircraft Order Status(1)						Company Order Status								Production		Pre- Production and  Excess- Over- Average		Total
			(Unaudited)								(Unaudited)
	Delivered To Airlines		Unfilled Orders		Unfilled Options		Contract Quantity (2)		Delivered		Firm Unfilled Orders(3)		Year Complete(4)
Aircraft Platforms — number of aircraft
787		—		848		229		1,882		9		21		2023	$	249.6	$	579.2	$	828.8
A350 XWB		—		573		183		1,884		—		—		2030		4.1		234.6		238.7
7Q7		—		—		—		19		1		1		2018		1.7		28.5		30.2
Engine Type — number of engines (engines are used on multiple aircraft platforms)
CF34-10		794		418		654		1,316		842		52		2013		7.4		24.7		32.1
Trent 900		88		224		60		945		154		217		2025		25.7		18.6		44.3
PW 1000G — MRJ		—		30		20		678		—		—		2029		—		53.9		53.9
PW 1000G – C Series		—		180		180		2,476		—		—		2028		0.1		104.7		104.8
Other																104.9		52.8		157.7
Total in-process inventory related to long-term contracts under the contract accounting method of accounting																393.5		1,097.0		1,490.5
A380 engineering costs recoverable under long-term contractual arrangements																16.8		28.9		45.7
Other in-process inventory																301.6		28.3		329.9
Total																318.4		57.2		375.6
Balance at December 31, 2010															$	711.9	$	1,154.2	$	1,866.1

(1) Represents the aircraft order status as reported by independent sources of the related number of aircraft or the number of engines as noted.

(2) Represents the number of aircraft or the number of engines as noted used to obtain average unit cost.

(3) Represents the number of aircraft or the number of engines as noted for which the Company has firm unfilled orders.

(4) The year presented represents the year in which the final production units included in the contract quantity are expected to be delivered. The contract may continue in effect beyond this date.