15. Inventories

As of December 31, inventories consisted of the following:

in million € 2009 2008
Raw materials and purchased components 311 289
Work in process 188 180
Finished goods 794 713
less reserves 58 55
Inventories, net 1,235 1,127

in million € 2009 2008
Raw materials and purchased components 311 289
Work in process 188 180
Finished goods 794 713
less reserves 58 55
Inventories, net 1,235 1,127

The companies of the Fresenius Group are obliged to purchase approximately € 1,739 million of raw materials and purchased components under fixed terms, of which € 334 million was committed at December 31, 2009 for 2010. The terms of these agreements run one to nine years. Advance payments from customers of € 186 million (2008: € 83 million) have been offset against inventories.

Inventories as of December 31, 2009 and December 31, 2008 included approximately € 24 million and approximately € 25 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. Revenues from EPO accounted for approximately 7 % of total sales of the Fresenius Group in 2009 and 2008, respectively.

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