INVENTORIES
 9 Months Ended
Sep. 30, 2012
Inventory Disclosure [Abstract]  
INVENTORIES
INVENTORIES

Inventories consisted of the following:
 
September 30,
2012
 
December 31,
2011
 
September 30,
2011
 
($ in millions)
Supplies
$
35.6

 
$
35.0

 
$
32.8

Raw materials
73.1

 
75.7

 
69.8

Work in process
33.6

 
31.9

 
32.4

Finished goods
149.3

 
111.7

 
104.9

 
291.6

 
254.3

 
239.9

LIFO reserve
(77.9
)
 
(77.7
)
 
(73.6
)
Inventories, net
$
213.7

 
$
176.6

 
$
166.3



In conjunction with the acquisition of KA Steel, we obtained inventories with a fair value of $35.8 million, as of August 22, 2012. In conjunction with the acquisition of SunBelt, we obtained inventories with a fair value of $4.0 million, as of February 28, 2011.  Inventories are valued at the lower of cost or market, with cost being determined principally by the dollar value last-in, first-out (LIFO) method of inventory accounting.  Cost for other inventories has been determined principally by the average cost method, primarily Chemical Distribution inventories, operating supplies, spare parts and maintenance parts.  Elements of costs in inventories included raw materials, direct labor and manufacturing overhead.  Inventories under the LIFO method are based on annual estimates of quantities and costs as of year-end; therefore, the condensed financial statements at September 30, 2012, reflect certain estimates relating to inventory quantities and costs at December 31, 2012.  If the first-in, first-out (FIFO) method of inventory accounting had been used, inventories would have been approximately $77.9 million, $77.7 million and $73.6 million higher than reported at September 30, 2012, December 31, 2011 and September 30, 2011, respectively.