Inventories

Inventories at September 30, 2013 and December 31, 2012 were as follows (in millions):



	September 30, 2013			December 31, 2012
Raw materials and supplies	$	330.7		$	351.6
Work-in-process	900.3			1,063.9
Finished goods	164.7			209.0
Total inventories at current cost	1,395.7			1,624.5
Less allowances to reduce current cost values to LIFO basis	(12.4		)	(76.9		)
Progress payments	(38.4		)	(11.0		)
Total inventories, net	$	1,344.9		$	1,536.6

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, decreased cost of sales by $39.1 million for the first nine months of 2013 compared to a decrease of $28.4 million for the first nine months of 2012.