Inventories

Inventories consisted of the following (in millions):



		September 30,
		2012			2011
Raw materials		$	558.0		$	587.4
Partially finished products		318.3			377.7
Finished products		371.0			237.8
Inventories at FIFO cost		1,247.3			1,202.9
Less:	Progress/performance-based payments on U.S. government contracts	(238.0		)	(341.7		)
	Excess of FIFO cost over LIFO cost	(71.8		)	(74.4		)
		$	937.5		$	786.8

Title to all inventories related to U.S. government contracts, which provide for progress or performance-based payments, vests with the U.S. government to the extent of unliquidated progress or performance-based payments. Due to a shortage in tires at one of the Company's suppliers, the defense segment was unable to complete production of certain vehicles sufficiently to recognize revenue. These vehicles have been included in finished goods at September 30, 2012 and will be recognized as revenue once tires are obtained and added to the defense vehicle such that the earnings process is complete.

During fiscal 2012, 2011 and 2010, reductions in FIFO inventory levels resulted in liquidations of LIFO inventory layers carried at lower costs prevailing in prior years as compared with the cost of current-year purchases. The effect of the LIFO inventory liquidations on fiscal 2012, 2011 and 2010 results was to decrease costs of goods sold by $0.3 million, $1.8 million and $5.6 million, respectively, and increase after-tax earnings from continuing operations by $0.2 million ($0.00 per share), $1.1 million ($0.01 per share) and $3.4 million ($0.04 per share), respectively.