Inventories

9 Months Ended

Sep. 30, 2020

Inventories consist of the following:


(In thousands)	September 30 2020		December 31 2019
Finished goods	$	14,736	$	14,550
Work-in-process	13,489		13,088

Raw materials and purchased parts	111,754		104,488
Stores and supplies	30,058		24,865
Total inventories	$	170,037	$	156,991

During 2016 the Company recognized an initial estimated forward loss provision related to the contracts with SBB of $45.1 million. The Company recorded an additional forward loss provision of $1.8 million during 2018. At September 30,

2020 the entire remaining estimated forward loss provision of $6.6 million is included as Other current liabilities on the Company's Condensed Consolidated Balance Sheets. The estimated forward loss provision represents the Company's best estimate based on currently available information. It is possible that the Company's overall estimate of costs to complete these contracts may increase, which would result in an additional estimated forward loss provision at such time.

The Company recognized $11.8 million and $5.7 million of revenues for the contracts with SBB at zero margin, on an over time basis, utilizing a cost-to-cost method for the three months ended September 30, 2020 and 2019, respectively, and $29.5 million and $16.4 million for the nine months ended September 30, 2020 and 2019, respectively. Consolidated product revenue gross margins were not significantly impacted by the revenue recognized under the SBB contracts for the three and nine months ended September 30, 2020 and 2019. The Company has substantially completed the first contract and is approximately 65% complete on the second contract with SBB as of September 30, 2020.