Inventories

9 Months Ended

Sep. 30, 2011

Inventories

Inventories

6.Inventories

Inventories consisted of the following at September 30, 2011 and December 31, 2010 (in millions):

	September 30,		December 31,
	2011		2010
Raw materials	$	185.3	$	143.7
Work-in-process	185.9		174.8
Demonstration units	55.0		48.6
Finished goods	175.2		143.9
Inventories	$	601.4	$	511.0

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 September 30, 2011 and December 31, 2010, inventory-in-transit was $112.6 and $85.3 million, respectively.

The Company reduces the carrying value of its demonstration inventories for differences between its cost and estimated net realizable value through a charge to cost of product revenue that is based on a number of factors, including the age of the unit, the physical condition of the unit and an assessment of technological obsolescence. Amounts recorded in cost of product revenue related to the write-down of demonstration units to net realizable value were $8.4 million and $6.0 million for the three months ended September 30, 2011 and 2010, respectively, and $22.0 million and $17.3 million for the nine months ended September 30, 2011 and 2010, respectively.