6. INVENTORIES

Inventoried costs contain amounts relating to long-term contracts and programs with long production cycles, a portion of which will not be realized within one year. Long term contract inventory includes an immaterial amount of claims or other similar items subject to uncertainty concerning their determination or realization. Inventories are valued at the lower of cost or market.

The composition of inventories as of December 31 is as follows:



(In thousands)	2018			2017
Raw material	$	214,442		$	191,855
Work-in-process	74,536			73,937
Finished goods	143,016			114,307
Inventoried costs related to U.S. Government and other long-term contracts	54,195			65,150
Gross inventories	486,189			445,249
Less: Inventory reserves	(55,776		)	(54,638		)
Progress payments applied	(6,987		)	(11,745		)
Inventories, net	$	423,426		$	378,866

As of December 31, 2018 and 2017, inventory also includes capitalized development costs of $44.4 million and $35.0 million, respectively, related to certain aerospace and defense programs. These capitalized costs will be liquidated as units are produced under contract. As of December 31, 2018 and 2017, $18.7 million and $5.4 million, respectively, are scheduled to be liquidated under existing firm orders.