Investments (continued) Gross realized gains on the sale of securities were approximately $1,354,000, $6,046,000 and $85,223,000 for the years ended December 31, 2002, 2001 and 2000, respectively. Gross realized losses on the sale of securities were approximately $1,749,000, $1,191,000 and $0 for the years ended December 31, 2002, 2001 and 2000, respectively. During 2002, ADTRAN recognized gross losses of $9,616,426 on available-for-sale equity investments due to impairments  that were deemed to be other-than-temporary. ADTRAN ™ also invests in privately-held companies and records its investments in these entities at cost. As of December 31, 2002 and 2001, ADTRAN had $1,314,369 and $3,125,582, respectively, of investments carried at cost. These investments are included in ADTRAN’s total long-term investments in the accompanying consolidated balance sheets. We review our investments in these entities periodically in order to determine if circumstances (both financial and non-financial) exist that indicate that we will not recover our initial investment. Impairment charges are recorded  on investments having a cost basis that is greater than the value that we would reasonably expect to receive in an arm’s length sale of the investment. During 2002, 2001 and 2000, ADTRAN recognized gross losses of $2,010,000, $5,528,930  and $1,182,984, respectively, on cost basis investments. ADTRAN has committed to invest an aggregate of $8,000,000 in two private equity funds, of which $835,674  has been invested to date. The duration of each of these commitments is five years with $3,000,000 expiring in 2005  and $5,000,000 expiring in 2007. This investment is included in ADTRAN’s total available-for-sale investments  and is classified as long-term investments in the accompanying consolidated balance sheets. At December 31, 2002 and 2001, inventory was comprised of the following: 3 Inventory 28 ADTRAN 2002 Annual Report December 31, 2001 $_{Cost or}$) $_{Gross}$) $_{Gross}$) $_{Amortized Cost}$) $_{Unrealized Gains}$) $_{Unrealized Losses}$) $_{Fair Values}$) Available-for-sale securities Restricted money market funds $50,000,000) $50,000,000) Municipal bonds and fixed income mutual funds 71,396,689) $242,072) ($684,961) 70,953,780) Marketable equity securities 19,004,225) 16,872,101) (1,743,808) 34,132,518) Other equity securities 811,705) 811,705) Total available-for-sale securities $141,212,619 ) $17,114,173 ) ($2,428,769) $155,898,023 ) Held-to-maturity securities Municipal bonds and other  government fixed income securities $25,972,779) $25,972,779) Other debt securities 2,313,877) 2,313,877) Total held-to-maturity securities $28,286,656 ) $28,286,656 ) At December 31, 2002 ) 2001 ) Raw materials $23,258,717) $38,441,408) Work in process 2,839,380) 5,154,555) Finished goods 18,265,011) 18,856,427) Inventory reserve (4,436,724) (5,602,920) Total $39,926,384 ) $56,849,470 )