Inventories

Approximately 86% of the Company’s inventories are valued using the average cost method and all remaining inventories are valued using the first-in, first-out (FIFO) method. During the nine months ended September 26, 2014, the Venezuelan entity recorded $8.8 million of lower of cost or market charges that were recognized within the Cost of sales caption in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). These charges are due to translation of local sales results at the SICAD 1 rate, approximately 10 BsF to 12 BsF per U.S. Dollar, and sales price caps under the new price controls law while the Company's cost for the copper component of its inventory is based on copper purchases at the official rate of 6.30 BsF per U.S. dollar. Therefore, management reduced Venezuela's inventory value to expected sales price (market value), which was lower than the recorded cost basis. In the three months ended September 26, 2014, the Venezuelan entity did not record a lower of cost or market charge. Refer to Note 22 - Venezuelan Operations for the recent developments at the Venezuelan entity.

At September 26, 2014, all inventories are stated at the lower of cost or market.



(in millions)	September 26, 2014		December 31, 2013
Raw materials	$	316.5	$	319.1
Work in process	202.1		190.1
Finished goods	759.6		730.4
Total	$	1,278.2	$	1,239.6