Inventories

Inventories are summarized as follows:



	SEPTEMBER 30 2011			DECEMBER 31 2010
Manufactured inventories:
Finished goods and service parts - NMHG	$	175.3		$	152.6
Raw materials and work in process - NMHG	228.6			171.8
Sourced inventories - HBB	93.8			84.7
Retail inventories - KC	66.3			59.3
Total inventories at FIFO	564.0			468.4
Coal - NACoal	14.9			10.9
Mining supplies - NACoal	12.4			11.4
Total inventories at weighted average	27.3			22.3
NMHG LIFO reserve	(50.6		)	(43.3		)
	$	540.7		$	447.4

The cost of certain manufactured inventories at NMHG, including service parts, has been determined using the last-in-first-out (“LIFO”) method. At September 30, 2011 and December 31, 2010, 35% and 33%, respectively, of total inventories were determined using the LIFO method. An actual valuation of inventory under the LIFO method can be made only at the end of the year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management's estimates of expected year-end inventory levels and costs. Because these estimates are subject to change and may be different than the actual inventory levels and costs at the end of the year, interim results are subject to the final year-end LIFO inventory valuation. During 2010, reductions in LIFO inventories at NMHG resulted in liquidations of LIFO inventory layers carried at lower costs compared with current year purchases. The income statement effect of such liquidations on “Cost of sales" was a benefit of $0.4 million and $1.7 million during the three and nine months ended September 30, 2010, respectively.