Physical Commodities Inventory

3 Months Ended

Dec. 31, 2011

Physical Commodities Inventory [Abstract]

Physical Commodities Inventory

Physical commodities inventory is valued at the lower of cost or fair value, determined using the weighted-average cost method. Commodities in process include commodities in the process of being recycled. As of December 31, 2011 and September 30, 2011, $112.8 million and $159.4 million, respectively, of physical commodities inventory served as collateral under one of the Company’s credit facilities, as detailed further in Note 10. The carrying values of the Company’s inventory as of December 31, 2011 and September 30, 2011 are shown below.



(in millions)	December 31, 2011		September 30, 2011
Commodities in process	$	1.7	$	2.4
Finished commodities	111.9		158.2
Physical commodities inventory	$	113.6	$	160.6

As a result of declining market prices for some commodities, the Company recorded lower of cost or market ("LCM") adjustments for physical commodities inventory of $3.0 million and $21.9 million as of December 31, 2011 and September 30, 2011, respectively. The adjustments are included within 'cost of sales of physical commodities' in the condensed consolidated income statements.

- 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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