INVENTORIES

Inventories, net consisted of the following:



	December 31,
	2017			2016
	(Amounts in thousands)
Raw materials	$	358,827		$	348,012
Work in process	548,250			629,766
Finished goods	215,849			206,086
Less: Progress billings	(160,044		)	(216,783		)
Less: Excess and obsolete reserve	(78,609		)	(69,391		)
Inventories, net	$	884,273		$	897,690

During 2017, 2016 and 2015, we recognized expenses of $22.9 million, $14.6 million and $20.2 million, respectively, for excess and obsolete inventory. These expenses are included in COS in our consolidated statements of income.

In the second quarter of 2017, we recorded a $16.9 million charge for costs incurred related to a contract to supply oil and gas platform equipment to an end user in Latin America. This charge was primarily related to our IPD reporting segment and resulted in a decrease to work in process.