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Inventories

3 Months Ended

Mar. 31, 2012

Inventories

6. Inventories

Inventories consisted of the following (in millions):

		March 31,			December 31,
		2012			2011
Raw materials		$	198.1		$	175.5
Work-in-process		206.1			169.4
Finished goods		183.9			175.3
Demonstration units		59.9			56.0
Inventories		$	648.0		$	576.2

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 March 31, 2012 and December 31, 2011, inventory-in-transit was $118.1 million and $116.8 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 $6.8 million and $6.5 million for the three months ended March 31, 2012 and 2011, respectively.

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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