(7) Inventories

Inventories at December 31, 2012 and 2011 comprise the following:

	December 31,

	2012			2011
Finished goods	$	131.1		$	162.4
Work in process		186.0			177.6
Raw materials and purchased parts		261.1			270.2

Total FIFO cost		578.2			610.2
Excess of FIFO cost over LIFO inventory value		(22.6	)		(23.0	)

Total inventories	$	555.6		$	587.2

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 19% and 15% of total inventory at December 31, 2012 and 2011, 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 $4.1 and $3.7 at December 31, 2012 and 2011, respectively. During 2012 and 2011, inventory reduction at certain businesses 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 $0.1 and $1.2 during the years ended December 31, 2012 and 2011, respectively.