Inventories and Contracts in Progress

3 Months Ended

Mar. 31, 2014

Notes to Condensed Consolidated Financial Statements [Abstract]



(Dollars in millions)	March 31, 2014			December 31, 2013
Raw materials	$	2,038		$	1,983
Work-in-process	4,993			4,600
Finished goods	3,653			3,360
Contracts in progress	8,029			7,929
	18,713			17,872
Less:
Progress payments, secured by lien, on U.S. Government contracts	(372		)	(279		)
Billings on contracts in progress	(7,349		)	(7,263		)
	$	10,992		$	10,330

As of March 31, 2014 and December 31, 2013, inventory also includes capitalized contract development costs of $922 million and $899 million, respectively, related to certain aerospace programs. These capitalized costs are liquidated as production units are delivered to the customer. The capitalized contract development costs within inventory principally relate to capitalized costs on Sikorsky’s CH-148 contract with the Canadian Government.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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