Supplementary Financial Statement Information

Research and Development Costs

The Company conducts a broad range of research and development activities aimed at improving existing products and manufacturing processes and developing new products and processes. Research and development costs, which are recorded as cost of products sold when incurred, totaled $17.5, $13.2 and $12.5 in 2014, 2013 and 2012, respectively.

Allowance for Doubtful Accounts

The following shows changes in the allowance for doubtful accounts for the years ended December 31, 2014, 2013 and 2012:



	2014		2013			2012
Balance at beginning of year	$	8.1	$	9.1		$	11.9
Increase (decrease) in allowance	0.9		(0.4		)	(2.7		)
Receivables written off	—		(0.6		)	(0.1		)
Balance at end of year	$	9.0	$	8.1		$	9.1

Inventory, net

Inventories as of December 31, 2014 and 2013, consist of:



	2014			2013
Finished and semi-finished	$	1,053.4		$	722.2
Raw materials	494.2			260.9
Total cost	1,547.6			983.1
Adjustment to state inventories at LIFO value	(375.5		)	(396.5		)
Inventory, net	$	1,172.1		$	586.6

There was no liquidation of LIFO layers in 2014. During 2013 and 2012, liquidation of LIFO layers generated income of $11.9 and $0.9, respectively. The following shows changes in the LIFO reserve for the years ended December 31, 2014, 2013 and 2012:



	2014			2013			2012
Balance at beginning of year	$	396.5		$	435.0		$	524.0
Change in reserve	(21.0		)	(38.5		)	(89.0		)
Balance at end of year	$	375.5		$	396.5		$	435.0

Property, Plant and Equipment

The Company’s property, plant and equipment balances as of December 31, 2014 and 2013 are as follows:



	2014			2013
Land, land improvements and leaseholds	$	260.7		$	249.5
Buildings	466.7			403.7
Machinery and equipment	5,571.0			5,178.0
Construction in progress	90.0			40.7
Total	6,388.4			5,871.9
Less accumulated depreciation	(4,175.2		)	(3,991.8		)
Property, plant and equipment, net	$	2,213.2		$	1,880.1

The amount of interest on capital projects capitalized in 2014, 2013 and 2012 was $2.7, $2.7 and $2.5, respectively. The Company had asset retirement obligations of $6.0 and $5.6 at December 31, 2014 and 2013, respectively.

Other Non-current Assets

Other non-current assets as of December 31, 2014 and 2013, consist of:



	2014		2013
Investment in AFSG Holdings, Inc.	$	55.6	$	55.6
Goodwill	32.8		32.8
Deferred tax assets, non-current	70.3		76.6
Other	72.2		73.3
Other non-current assets	$	230.9	$	238.3