3.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 and inventory items with long procurement 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 $106.0 and $87.7 and capitalized development costs on long-term seller furnished equipment contracts of $517.3 and $438.1 as of December 31, 2016 and December 31, 2015, respectively. Inventories consist of the following:


	December 31,		December 31,
	2016		2015
Purchased materials and component parts	$	358.2	$	322.7
Work-in-process		845.2		722.7
Finished goods		55.5		46.5
	$	1,258.9	$	1,091.9