Inventories

Inventories at March 31, 2014 and December 31, 2013 were as follows (in millions):



	March 31, 2014			December 31, 2013
Raw materials and supplies	$	291.2		$	277.6
Work-in-process	1,069.3			984.9
Finished goods	161.3			162.1
Total inventories at current cost	1,521.8			1,424.6
Adjustment from current cost to LIFO cost basis	20.4			29.4
Inventory valuation reserves	(73.7		)	(84.3		)
Progress payments	(60.0		)	(47.6		)
Total inventories, net	$	1,408.5		$	1,322.1

Inventories are stated at the lower of cost (last-in, first-out (“LIFO”), first-in, first-out (“FIFO”), and average cost methods) or market, less progress payments. Most of the Company’s inventory is valued utilizing the LIFO costing methodology. Inventory of the Company’s non-U.S. operations is valued using average cost or FIFO methods. The effect of using the LIFO methodology to value inventory, rather than FIFO, increased cost of sales by $9.0 million for the first three months of 2014, which was offset by a $9.0 million reduction in net realizable value reserves on the carrying value of LIFO-based inventory. First quarter 2013 results included a $0.5 million increase in cost of sales from using the LIFO costing methodology. First quarter 2014 results included $8.3 million in inventory valuation charges related to the market-based valuation of industrial titanium products in the Flat Rolled Products segment.