Inventories

6 Months Ended

Jun. 30, 2023

INVENTORIES

Inventories consisted of the following:


	June 30, 2023		December 31, 2022
In thousands
Raw materials	$	29,820	$	24,572
Contracts and other work in process (including certain general stock materials)	127,913		107,803
Finished goods	35,052		40,008
Inventories	$	192,785	$	172,383

There were no amounts included in inventories associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs at June 30, 2023 and December 31, 2022.

At June 30, 2023 and December 31, 2022, $22.2 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 $20.0 million of the K-MAX® inventory will be sold after June 30, 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. Additionally, 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. Inventory write-offs for both the three-month and six-month fiscal periods ended June 30, 2023 were $0.6 million.

At June 30, 2023 and December 31, 2022, $6.0 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 $4.8 million of the SH-2G(I) inventory will be sold after June 30, 2024. This balance represents spares requirements and inventory to be used on SH-2G programs.