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Inventories

12 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories at December 31, 2013 and 2012 were as follows (in millions):

		2013				2012
Raw materials and supplies		$	277.6			$	351.6
Work-in-process		984.9				1,127.0
Finished goods		162.1				209.0
Total inventories at current cost		1,424.6				1,687.6
Adjustment from current cost to LIFO cost basis		29.4				(76.9		)
Inventory valuation reserves		(84.3		)		(63.1		)
Progress payments		(47.6		)		(11.0		)
Total inventories, net		$	1,322.1			$	1,536.6

Inventories, before progress payments, determined on the LIFO method were $976.1 million at December 31, 2013, and $997.3 million at December 31, 2012. The remainder of the inventory was determined using the FIFO and average cost methods, and these inventory values do not differ materially from current cost. The effect of using the LIFO methodology to value inventory, rather than FIFO, decreased cost of sales by $80.9 million, $75.6 million, and $25.9 million in 2013, 2012 and 2011, respectively. Due to deflationary impacts primarily related to raw materials, the carrying value of the Company's inventory as valued on the LIFO inventory accounting method exceeded current replacement cost at December 31, 2013. Based on a lower of cost or market value analysis, a $35.0 million net realizable value reserve was recorded in the High Performance Metals segment. In addition, continued sluggish demand for industrial titanium products from global markets has resulted in much lower selling prices for these products. As a result, in 2013, the Company recorded a $20.5 million lower of cost or market reserve for industrial titanium products in the Flat-Rolled Products segment.

During 2013, 2012, and 2011, inventory usage resulted in liquidations of LIFO inventory quantities. These inventories were carried at differing costs prevailing in prior years as compared with the cost of current manufacturing cost and purchases. The effect of these LIFO liquidations was to increase cost of sales by $3.8 million in 2013, increase cost of sales by $1.5 million in 2012 and decrease cost of sales by $0.1 million in 2011.

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- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6361739&loc=d3e7789-107766



Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 43

-Section A

-Paragraph 9

-Chapter 3

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.5-02.6)

-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682



Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 6

-Subparagraph a, b, c

-Article 5

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