Inventories

12 Months Ended

Sep. 30, 2011

Inventories

Inventories

5. Inventories

Inventories consisted of the following (in millions):

		September 30,
		2011			2010
Raw materials		$	587.4		$	658.6
Partially finished products		377.7			332.2
Finished products		237.8			227.3
Inventories at FIFO cost		1,202.9			1,218.1
Less:	Progress/performance-based payments on U.S. government contracts	(341.7		)	(308.7		)
	Excess of FIFO cost over LIFO cost	(74.4		)	(60.8		)
		$	786.8		$	848.6

Title to all inventories related to government contracts, which provide for progress or performance-based payments, vests with the government to the extent of unliquidated progress or performance-based payments.

Inventory includes costs which are amortized to expense as sales are recognized under certain contracts. At September 30, 2011 and 2010, unamortized costs related to long-term contracts of $0.3 million and $4.1 million, respectively, were included in inventory.

During fiscal 2011, 2010 and 2009, reductions in FIFO inventory levels resulted in liquidations of LIFO inventory layers carried at lower costs prevailing in prior years as compared with the cost of current-year purchases. The effect of the LIFO inventory liquidations on fiscal 2011, 2010 and 2009 results was to decrease costs of goods sold by $1.8 million, $5.6 million and $6.0 million, respectively, and increase earnings from continuing operations by $1.1 million ($0.01 per share), $3.4 million ($0.04 per share) and $3.7 million ($0.05 per share), respectively.