15. Inventories

As of December 31, inventories consisted of the following:

€ in millions 2010 2009
Raw materials and purchased components 350 311
Work in process 255 188
Finished goods 874 794
less reserves 68 58
Inventories, net 1,411 1,235

€ in millions 2010 2009
Raw materials and purchased components 350 311
Work in process 255 188
Finished goods 874 794
less reserves 68 58
Inventories, net 1,411 1,235

The companies of the Fresenius Group are obliged to purchase approximately €1,720 million of raw materials and purchased components under fixed terms, of which €363 million was committed at December 31, 2010 for 2011. The terms of these agreements run one to eight years. Advance payments from customers of €170 million (2009: €186 million) have been offset against inventories.

Inventories as of December 31, 2010 and December 31, 2009 included approximately €25 million and approximately €24 million, respectively, of the product Erythropoietin (EPO), which is supplied by a single source supplier in the United States. Delays, stoppages, or interruptions in the supply of EPO could adversely affect the operating results of Fresenius Medical Care. In October 2006, Fresenius Medical Care entered into a five-year exclusive sourcing and supply agreement with its EPO supplier. Sales from EPO accounted for approximately 7% of total sales of the Fresenius Group in 2010 and 2009, respectively.

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