Inventories

Inventories consisted of the following (in thousands):



	March 31, 2017		December 31, 2016
Raw material	$	91,405	$	28,435
Work in process	71,949		4,415
Finished goods	282,330		16,414
Total inventories	$	445,684	$	49,264

During the quarter ended March 31, 2017, inventories increased significantly due to the acquisition of the HIS business. All acquired inventory was recorded at fair value on February 3, 2017 in accordance with ASC 805, Business Combination guidance (see Note 3: Acquisitions and Strategic Transaction Expenses).

During the quarter ended March 31, 2017, we adopted ASU 2015-11, accordingly inventories are stated at lower of cost or net realizable value (see Note 2: New Accounting Pronouncements).