NOTE 7. INVENTORIES

Inventories consist of the following at March 31, 2017 and December 31, 2016 (in thousands):



	March 31, 2017		December 31, 2016
Raw materials (1)	$	159,613	$	175,240
Work-in-process (1)	112,534		100,494
Finished goods (1)	276,991		279,937
Total	$	549,138	$	555,671

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(1) The components of inventory shown in the table above are net of allowance for obsolescence.

Inventory that is in excess of the amount expected to be sold within one year, which relates primarily to XIAFLEX^® inventory, is classified as long-term inventory and is not included in the table above. At March 31, 2017 and December 31, 2016, $25.1 million and $22.9 million, respectively, of long-term inventory was included in Other assets in the Condensed Consolidated Balance Sheets. As of March 31, 2017 and December 31, 2016, the Company’s Condensed Consolidated Balance Sheets included approximately $12.3 million and $16.8 million, respectively, of capitalized pre-launch inventories related to generic products that were not yet available to be sold.