NOTE 7. INVENTORIES


	December 31, 2011			December 31, 2010
	December 31, 2011			December 31, 2010
Finished goods	$	271.5		$	277.7
Goods in process		25.7			26.7
Raw materials and supplies		118.1			119.9
Less LIFO and other reserves		(26.4	)		(25.8	)
Total inventories, net	$	388.9		$	398.5

Approximately 63% and 65% of our total inventory in 2011 and 2010, respectively, was valued on a LIFO (last-in, first-out) basis. Inventory values were lower than would have been reported on a total FIFO (first-in, first-out) basis by $15.6 million and $17.1 million in 2011 and 2010, respectively.

The distinction between the use of different methods of inventory valuation is primarily based on geographical locations and/or legal entities rather than types of inventory. The following table summarizes the amount of inventory that is not accounted for under the LIFO method.


	December 31, 2011		December 31, 2010
	December 31, 2011		December 31, 2010
International locations	$	126.2	$	124.3
Cabinets		12.8		10.0
Wood flooring		-		0.3
Resilient flooring		-		1.3
U.S. sourced products		3.1		3.7
Total	$	142.1	$	139.6

Substantially all of our international locations use the FIFO method of inventory valuation (or other methods which closely approximate the FIFO method) primarily because either the LIFO method is not permitted for local tax and/or statutory reporting purposes, or the entities were part of various acquisitions that had adopted the FIFO method prior to our acquisition. In these situations, a conversion to LIFO would be highly complex and involve excessive cost and effort to achieve under local tax and/or statutory reporting requirements.

The sourced products represent certain finished goods sourced from third party manufacturers, primarily from foreign suppliers.