INVENTORIES

6 Months Ended

Jun. 30, 2011

Inventories consisted of the following:

	June 30, 2011			December 31, 2010			June 30, 2010
	($ in millions)
Supplies	$	33.1		$	30.8		$	28.3
Raw materials		68.1			56.5			62.7
Work in process		30.9			24.7			25.5
Finished goods		116.4			104.4			104.9
		248.5			216.4			221.4
LIFO reserve		(66.5	)		(60.8	)		(58.4	)
Inventories, net	$	182.0		$	155.6		$	163.0

In conjunction with the acquisition of SunBelt, we obtained inventories with a fair value of $4.0 million, as of February 28, 2011. Inventories are valued at the lower of cost or market, with cost being determined principally by the dollar value last-in, first-out (LIFO) method of inventory accounting. Cost for other inventories has been determined principally by the average cost method, primarily operating supplies, spare parts, and maintenance parts. Elements of costs in inventories included raw materials, direct labor, and manufacturing overhead. Inventories under the LIFO method are based on annual estimates of quantities and costs as of year-end; therefore, the condensed financial statements at June 30, 2011, reflect certain estimates relating to inventory quantities and costs at December 31, 2011. If the first-in, first-out (FIFO) method of inventory accounting had been used, inventories would have been approximately $66.5 million, $60.8 million and $58.4 million higher than reported at June 30, 2011, December 31, 2010, and June 30, 2010, respectively.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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