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Note 8. Inventories

Inventories consist of the following: 

 December 31,
 20142015
Components and raw materials69,70974,362
Work in process30,04030,627
Finished goods45,06427,863
Total inventories, gross144,813132,852
Allowance for obsolescence(18,883)(19,350)
Total inventories, net125,930113,502

The changes in the allowance for obsolescence are as follows:

December 31,
20142015
Balance at beginning of year(23,696)(18,883)
Charged to cost of sales(2,282)(5,204)
Reversals2793,859
Utilization of the provision8,5142,167
Foreign currency translation effect(1,698)(1,289)
Balance at end of year(18,883)(19,350)

On December 31, 2015 our allowance for inventory obsolescence amounted to €19,350, which is 14.6% of total inventory. The major part of the allowance is related to components and raw materials. The addition for the years 2014 and 2015 mainly relate to inventory items which were ceased to be used due to technological developments and design changes which resulted in in obsolescence of certain parts.

The cost of inventories recognized as costs and included in cost of sales amounted to €288.7 million (2014: €234.3 million).