Inventories

6 Months Ended

Jun. 28, 2019

INVENTORIES

Inventories consist of the following:



	June 28, 2019		December 31, 2018
In thousands
Raw materials	$	15,409	$	15,939
Contracts and other work in process (including certain general stock materials)	124,049		96,667
Finished goods	23,548		18,963
Inventories⁽¹⁾	$	163,006	$	131,569

⁽¹⁾ Inventories of the Distribution segment were included in assets held for sale, current portion on the Company's Condensed Consolidated Balance Sheets. See Note 4, Discontinued Operations, for further information on the Company's agreement to sell the Distribution segment.

The increase in contracts and other work in process (including certain general stock materials) for the six-month fiscal period ended June 28, 2019 was primarily attributable to work performed on the JPF DCS program, K-MAX® program and bearings products.

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



	June 28, 2019		December 31, 2018
In thousands
Contract changes, negotiated settlements and claims for unanticipated contract costs	$	396	$	508

10. INVENTORIES (CONTINUED)

At June 28, 2019 and December 31, 2018, $42.4 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 $22.4 million of the K-MAX® inventory will be sold after June 28, 2020, based upon the anticipation of additional aircraft manufacturing and supporting the fleet for the foreseeable future.

At June 28, 2019 and December 31, 2018, $5.2 million and $5.4 million, respectively, of SH-2G(I) inventory was included in contracts and other work in process inventory on the Company's Condensed Consolidated Balance Sheets. Management believes that approximately $5.0 million of the SH-2G(I) inventory will be sold after June 28, 2020. This balance represents spares requirements and inventory to be used on SH-2G programs.