5. 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 is as follows:



(In thousands)	March 31, 2019			December 31, 2018
Raw materials	$	201,889		$	214,442
Work-in-process	90,406			74,536
Finished goods and component parts	145,923			143,016
Inventoried costs related to U.S. Government and other long-term contracts	74,343			54,195
Gross inventories	512,561			486,189
Less: Inventory reserves	(58,046		)	(55,776		)
Progress payments applied	(7,493		)	(6,987		)
Inventories, net	$	447,022		$	423,426

Inventoried costs related to long-term contracts include capitalized contract development costs related to certain aerospace and defense programs of $45.0 million and $44.4 million as of March 31, 2019 and December 31, 2018, respectively. These capitalized costs will be liquidated as control of production units is transferred to the customer. As of March 31, 2019 and December 31, 2018, $34.3 million and $18.7 million, respectively, are scheduled to be liquidated under existing firm orders.