
2.	INVENTORIES

We state our inventories at the lower of cost or market. The cost of our inventories is determined using the FIFO method. When we determine that our gross inventories exceed usage requirements, or if inventories become obsolete or otherwise not saleable, we record a provision for such loss as a component of our inventory accounts.

Inventories consist of the following:



	June 30, 2016			December 31, 2015
	(in millions)

Raw materials and work-in-progress	$	221.3		$	228.7
Finished goods	34.2			31.1
Gross inventories	255.5			259.8
Inventory valuation reserves	(28.6		)	(29.3		)
Inventories, net	$	226.9		$	230.5