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INVENTORIES

3 Months Ended

Mar. 31, 2020

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 net realizable value.

The composition of inventories is as follows:


(In thousands)	March 31, 2020		December 31, 2019
Raw materials	$	170,549	$	153,876
Work-in-process	101,551		100,359
Finished goods	115,647		108,329
Inventoried costs related to U.S. Government and other long-term contracts ⁽¹⁾	69,452		70,414
Inventories, net of reserves	457,199		432,978
Less: Progress payments applied	(7,945)		(8,143)
Inventories, net	$	449,254	$	424,835

⁽¹⁾ As of March 31, 2020 and December 31, 2019, this caption also includes capitalized development costs of $36.9 million and $39.1 million, respectively, related to certain aerospace and defense programs. These capitalized costs will be liquidated as units are produced under contract. As of March 31, 2020 and December 31, 2019, capitalized development costs of $19.3 million and $23.7 million, respectively, are not currently supported by existing firm orders.