72 million on derivative instruments which were not designated as cash flow hedges and inef fectiveness on derivatives designated as cash flow hedges. On January 8, 2010 , the V enezuelan government announced the devaluation of its currency , BsF , and established a two-tier foreign exchange structure. Due to the impact of the devaluation of its currency by the V enezuelan government, the Company recorded a pre-tax char ge of $29.8 million in the first quarter of 2010 related to the remeasurement of the local balance sheet on the date of the devaluation at the of ficial non-essential rate. The functional currency of the Company’ s subsidiary in V enezuela is the U.S. dollar . Ef fective January 1, 201 1 , the Central Bank of V enezuela and the Ministry of Finance published an amendment to Convenio Cambiario No. 14 (the Exchange Law), whereby the of ficial exchange rate was set at 4.30 BsF per U.S. dollar , eliminating the 2.60 BsF per U.S. dollar rate previously established for essential goods in the first quarter of 2010. Thereafter , the Company can only import copper at the 4.30 BsF per U.S. dollar rate. In the year ended December 31, 201 1 , the Company purchased 19.1 million pounds of copper at the 4.30 BsF per U.S. dollar rate recording no foreign currency gains or losses. In the second quarter of 2010, the Company received authorization to purchase dollars to import copper at the of ficial exchange rate for essential goods of 2.60 BsF per U.S. dollar . In 2010 , the Company recorded $16.6 million in foreign exchange gains related to transactions completed at the 2.60 BsF per U.S. dollar essential rate. Copper imports prior to the approval were imported at the parallel rate of about 6.88 BsF per U.S. dollar , which was closed on June 9, 2010 . In 2010 , the Company recorded $10.7 million in foreign exchange losses related to copper imports at this parallel rate. Refer to Item 7 - MD&A – V enezuelan Operations for additional detail and Note 23 - Subsequent Events. 5. Inventories Approximately 84% of the Company’ s inventories are valued using the average cost method and all remaining inventories are valued using the first-in, first-out (FIFO) method. All inventories are stated at the lower of cost or market value. (in millions) Dec 31, 2012 Dec 31, 2011 Raw materials $ 332.0 $ 293.8 Work in process 211.8 193.3 Finished goods 707.8 698.4 Total $ 1,251.6 $ 1,185.5 At December 31, 2012 and 201 1 , the Company had approximately $ 27.3 million and $ 26.4 million , respectively of consignment inventory at locations not operated by the Company with approximately 92% and 85% , respectively , of the consignment inventory located throughout the United States and Canada. T able of Contents