Inventories, net

Inventories are valued at the lower of cost or market. The cost of U.S. inventories is determined by the last-in, first-out (“LIFO”) method, while the operations outside the U.S. use the first-in, first-out (“FIFO”) or average-cost methods. Inventories consisted of the following:



	September 30,			December 31,
(millions of dollars)	2011			2010
Raw material and supplies	$	283.0		$	244.0
Work in progress	96.2			88.1
Finished goods	120.2			111.7
FIFO inventories	499.4			443.8
LIFO reserve	(17.0		)	(13.2		)
Inventories, net	$	482.4		$	430.6