INVENTORIES, NET

6 Months Ended

Jul. 01, 2023

INVENTORIES

The following table summarizes our inventories.


As of the Period Ended	July 1, 2023		December 31, 2022
Raw materials	$	375.5	$	342.7
Work in process	108.5		104.6
Finished goods	89.2		86.6
Inventories(a)	$	573.2	$	533.9

(a) We recorded inventory write-downs of $1.2 and $5.7 related to inventories held by entities impacted by the Russia-Ukraine war during the six months ended July 1, 2023 and July 2, 2022, respectively. See Note 1, Description of Business and Basis of Presentation, for further information.

Government Assistance (ASU 2021-10)

Since the start of the COVID-19 pandemic, energy prices have been increasing around the world, particularly in Europe. These increases have prompted governments to put in place measures to shield businesses and consumers from the direct impact of rising prices. These measures include granting subsidies to help offset the high energy prices.

ASU 2021-10 requires entities to provide information about the nature of transactions, related policies and effect of government grants on an entity’s financial statements. In particular, to qualify for an energy subsidy in Italy, a company must apply for and receive a certificate attesting that the company is an "energy and gas consuming company" (high energy consumption connected to the production cycle). The amount of subsidies granted is calculated based on a percentage of actual consumption, ranging from 20% to 45%. One of our Italian subsidiaries within our MT segment obtained this certificate and was granted energy subsidies from the Italian government beginning in April 2022. Based on the energy consumption, we recognized a benefit of $2.4 and $6.3 for the three and six months ended July 1, 2023. These energy subsidies are recorded within Costs of revenue in our Consolidated Statements of Operations. Energy subsidies for the three and six months ended July 2, 2022 were not material. There was no other material government assistance received by the Company or any of our subsidiaries during the periods.