F. INVENTORIES

Our major classes of inventories were as follows as of December 31, 2015 and 2014 (in thousands):


	December 31,
	2015		2014
Raw materials	$	19,673	$	14,188
Work in process		1,985		5,965
Finished goods		18,987		20,457
Inventories included in current assets		40,645		40,610
Included in other long-term assets:
Raw materials		—		7,798
Total inventories	$	40,645	$	48,408

Total inventories as of December 31, 2015 decreased by $7.8 million as compared to 2014 primarily due to inventory sold to customers, partially offset by the inclusion of CBR inventory acquired in connection with the August 2015 acquisition of CBR, which consists of cord blood and cord tissue collection kits, and processing bags. Additionally, during 2015 we expensed $3.6 million of Makena inventory and $1.0 million of Feraheme commercial inventory, respectively, which may not be saleable and which was recorded in cost of product sales in our consolidated statements of operations. The $3.6 million of expensed Makena inventory included a fair value adjustment of $3.3 million. During 2014, we expensed $0.7 million of Feraheme commercial inventory, which we determined would be solely used in development activities at our third-party suppliers and which we recorded in research and development expenses in our consolidated statements of operations.

As of December 31, 2015, we believed that FDA approval and subsequent commercialization of the single-dose preservative-free formulation of Makena was probable and therefore capitalized approximately $3.8 million of inventory related to the single-dose preservative-free formulation of Makena, which included a fair value adjustment of $1.5 million. In February 2016, we received FDA approval for the single-dose formulation of Makena for inventory produced at Hospira, Inc. and we expect to begin commercialization of it in the second quarter of 2016.

In the fourth quarter of 2014, we recorded the acquired Makena inventory at fair value of $30.3 million, which required a $26.1 million step-up adjustment to recognize the inventory at its expected net realizable value. We are amortizing and recognizing the step-up adjustment as cost of product sales in our consolidated statements of operations as the related inventories are sold and we record step-up costs associated with clinical trial material as research and development expense.

See Note C, "Business Combinations," for additional information.