5. Inventories

Inventories consisted of the following (in millions):

	June 30,		December 31,
	2014		2013
Raw materials	$	200.4	$	189.7
Work-in-process	200.8		196.5
Finished goods	158.2		155.3
Demonstration units	52.7		48.3
Inventories	$	612.1	$	589.8

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 June 30, 2014 and December 31, 2013, inventory-in-transit was $71.5 million and $81.9 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 revenue related to the write-down of demonstration units to net realizable value were $7.6 million and $8.2 million for the three months ended June 30, 2014 and 2013, respectively, and $15.2 million and $16.0 million for the six months ended June 30, 2014 and 2013, respectively.