Inventories

3 Months Ended

Mar. 31, 2023

INVENTORIES

Inventories consisted of the following:


	March 31, 2023		December 31, 2022
In thousands
Raw materials	$	27,595	$	25,798
Contracts and other work in process (including certain general stock materials)	124,953		110,609
Finished goods	33,947		40,061
Inventories	$	186,495	$	176,468

There were no amounts included in inventories associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs at March 31, 2023 and December 31, 2022.

At March 31, 2023 and December 31, 2022, $25.6 million and $24.7 million, respectively, of K-MAX® inventory 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 $23.4 million of the K-MAX® inventory will be sold after March 31, 2024, based upon the requirements to support the fleet for the foreseeable future. In December 2022, the Company began a review of all businesses and programs to increase efficiencies, improving working capital management and focus on sustainable and consistent revenue and profit generating activities. As a result, the Company determined it would discontinue K-MAX® aircraft production and wrote off $44.5 million of inventory associated with the program as of December 31, 2022. There were no additional inventory write-offs for the period ended March 31, 2023; however, production material for the K-MAX® includes long lead parts, which the Company evaluates for alternative use as received. Any write-offs related to these parts are not expected to have a material adverse effect on the Company's results of operations or financial position.

At March 31, 2023 and December 31, 2022, $6.4 million and $6.2 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 $5.3 million of the SH-2G(I) inventory will be sold after March 31, 2024. This balance represents spares requirements and inventory to be used on SH-2G programs.