Inventories

12 Months Ended

Dec. 31, 2019

INVENTORIES

Inventories consist of the following:



	At December 31,
	2019		2018
In thousands
Raw materials	$	15,012	$	15,939
Contracts in process:
US Government	6,217		6,030
Commercial and other government contracts	74,035		49,471
Contracts and other work in process (including certain general stock materials)	36,130		41,166
Finished goods	24,959		18,963
Inventories⁽¹⁾	$	156,353	$	131,569

⁽¹⁾ Inventories attributable to the Company's formerly owned Distribution business were included in assets held for sale, current portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations, for further information on the Company's sale of the Distribution business.

Inventories include amounts associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs, which totaled $0.4 million and $0.5 million at December 31, 2019 and 2018, respectively.

At December 31, 2019 and 2018, $43.6 million and $34.7 million, respectively, of K-MAX® inventory was included in contracts and other work in process inventory and finished goods on the Company's Consolidated Balance Sheets. Management believes that approximately $22.5 million of the K-MAX® inventory will be sold after December 31, 2020, based upon the anticipation of additional aircraft manufacturing and supporting the fleet for the foreseeable future.

At December 31, 2019 and 2018, $3.6 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 Consolidated Balance Sheets. Management believes that approximately $3.2 million of the SH-2G(I) inventory will be sold after December 31, 2020. This balance represents spares requirements and inventory to be used in SH-2G programs.