Note 4.Inventories

Inventories are stated at the lower of cost or market. Cost is determined using FIFO or the weighted average cost method. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. In accordance with industry practice, costs in inventory include amounts relating to long-term contracts with long production cycles, some of which are not expected to be realized within one year. Work-in-process inventories include costs and estimated earnings in excess of billings on uncompleted contracts of $114.7 and $127.9 and capitalized development costs on long-term seller furnished equipment contracts of $405.9 and $320.6 as of September 30, 2015 and December 31, 2014, respectively. Inventories consist of the following:


		September 30,		December 31,
		2015		2014
Purchased materials and component parts	$	327.9	$	257.4
Work-in-process		706.7		605.9
Finished goods		51.3		61.0
	$	1,085.9	$	924.3