Note 6—Inventories

Inventories consisted of the following at December 31, (in millions):

	2017		2016
Raw materials	$	152.0	$	132.8
Work-in-process		183.1		181.0
Finished goods		96.6		91.8
Demonstration units		54.5		34.8

Inventories	$	486.2	$	440.4

Finished goods include in-transit systems that have been shipped to the Company's customers but not yet installed and accepted by the customer. As of December 31, 2017 and 2016, inventory-in-transit was $41.4 million and $37.5 million, respectively.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. This guidance eliminates the measurement of inventory at market value, and inventory is now measured at the lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. The Company adopted ASU No. 2015-11 on a prospective basis in the first quarter of 2017.