Inventories

Inventories at March 31, 2015 and December 31, 2014 were as follows (in millions):



	March 31, 2015			December 31, 2014
Raw materials and supplies	$	234.5		$	249.3
Work-in-process	1,186.3			1,184.1
Finished goods	177.0			172.2
Total inventories at current cost	1,597.8			1,605.6
Adjustment from current cost to LIFO cost basis	4.3			4.8
Inventory valuation reserves	(66.4		)	(68.8		)
Progress payments	(63.1		)	(68.8		)
Total inventories, net	$	1,472.6		$	1,472.8

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 $0.5 million for the first three months of 2015, which was offset by a $0.5 million reduction in net realizable value reserves on the carrying value of LIFO-based inventory. The first three months of 2014 results included a $9.0 million increase in cost of sales from using the LIFO costing methodology, which was offset by a $9.0 million reduction in net realizable value reserves on the carrying value of LIFO-based inventory. The first three months of 2015 and 2014 results included $5.3 million and $8.3 million, respectively, in inventory valuation charges related to the market-based valuation of industrial titanium products in the Flat Rolled Products segment.