INVENTORIES

Inventories consist of the following:



	March 29, 2019		December 31, 2018
In thousands
Merchandise for resale	$	163,330	$	162,985
Raw materials	15,438		15,939
Contracts and other work in process (including certain general stock materials)	112,477		97,025
Finished goods	22,649		18,963
Total	$	313,894	$	294,912

The increase in contracts and other work in process (including certain general stock materials) for the three-month fiscal period ended March 29, 2019 was primarily attributable to work performed on the JPF DCS program, K-MAX® program and bearings products in the Aerospace segment.

Inventories include amounts associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows:



	March 29, 2019		December 31, 2018
In thousands
Contract changes, negotiated settlements and claims for unanticipated contract costs	$	514	$	508

At March 29, 2019, and December 31, 2018, $40.4 million and $34.7 million, respectively, of K-MAX® inventory, including inventory associated with the new build aircraft, was included in contracts and other work in process inventory and finished goods on the Company's Condensed Consolidated Balance Sheets. Management believes that approximately $21.0 million of the K-MAX® inventory will be sold after March 29, 2020, based upon the anticipation of additional aircraft manufacturing and supporting the fleet for the foreseeable future.

At March 29, 2019, and December 31, 2018, $5.4 million of SH-2G(I) inventory was included in contracts and other work in process inventory in both periods on the Company's Condensed Consolidated Balance Sheets. Management believes that approximately $5.2 million of the SH-2G(I) inventory will be sold after March 29, 2020. This balance represents spares requirements and inventory to be used on SH-2G programs.