INVENTORIES

12 Months Ended

Dec. 31, 2019

Inventory, Net [Abstract]

INVENTORIES

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.  The caption "Inventoried costs related to U.S. Government and other long-term contracts" 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 as of December 31 is as follows:

(In thousands)	2019		2018
Raw material	$	183,576	$	214,442
Work-in-process	105,874		74,536
Finished goods	131,124		143,016
Inventoried costs related to U.S. Government and other long-term contracts (1)	70,998		54,195
Gross inventories	491,572		486,189
Less: Inventory reserves	(58,594)		(55,776)
Progress payments applied	(8,143)		(6,987)
Inventories, net	$	424,835	$	423,426

⁽¹⁾ As of December 31, 2019 and 2018, this caption also includes capitalized development costs of $39.1 million and $44.4 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, 2019 and 2018, capitalized development costs of $23.7 million and $24.1 million, respectively, are not currently supported by existing firm orders.