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Inventories

12 Months Ended

Dec. 31, 2011

(7) Inventories

Inventories at December 31, 2011 and 2010 comprise the following:

	December 31,

	2011			2010
Finished goods	$	163.9		$	125.1
Work in process		179.5			104.4
Raw materials and purchased parts		271.5			248.3

Total FIFO cost		614.9			477.8
Excess of FIFO cost over LIFO inventory value		(23.0	)		(22.4	)

Total inventories	$	591.9		$	455.4

Inventories include material, labor and factory overhead costs and are reduced, when necessary, to estimated realizable values. Certain domestic inventories are valued using the last-in, first-out ("LIFO") method. These inventories were approximately 15% and 14% of total inventory at December 31, 2011 and 2010, respectively. Other inventories are valued using the first-in, first-out ("FIFO") method. Progress payments, which are netted against work in process at year-end, were $3.7 and $5.9 at December 31, 2011 and 2010, respectively. During 2011 and 2010, inventory reduction resulted in a liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years, the effect of which increased operating income by approximately $1.2 and $4.0 during the years ended December 31, 2011 and 2010, respectively.

- 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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