Note 4. Inventories

Inventories are stated at the lower of cost or market. Cost is determined using FIFO or the weighted average cost method. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. In accordance with industry practice, costs in inventory include amounts relating to long-term contracts with long production cycles and inventory items with long procurement cycles, some of which are not expected to be realized within one year. Work-in-process inventories include costs and estimated earnings in excess of billings on uncompleted contracts. Finished goods inventories primarily consist of aftermarket fasteners. Inventories consist of the following:

	September 30, 2011		December 31, 2010
Purchased materials and component parts	$	165.9	$	140.0
Work-in-process		164.4		130.8
Finished goods		1,138.7		1,101.2
	$	1,469.0	$	1,372.0