Inventoried Costs, Net

12 Months Ended

Dec. 31, 2023

6. INVENTORIED COSTS, NET

Inventoried costs are principally associated with contracts where the U.S. government is the primary customer, therefore the company does not believe it has significant exposure to recoverability risk related to these amounts. Inventoried costs associated with our commercial businesses, while less significant in total, are subject to a greater level of recoverability risk. The company recorded write-downs of commercial business inventory at Space Systems for which its cost exceeded net realizable value of $43 million and $45 million during the years ended December 31, 2023 and 2022, respectively. As discussed in Note 1, the company recognized a $45 million reduction of inventoried costs related to the B-21 program at Aeronautics Systems during the year ended December 31, 2023.

Inventoried costs, net consisted of the following:


	December 31
$ in millions	2023		2022
Contracts in process	$	647	$	574
Product inventory:
Raw materials	338		325
Work in process	72		31
Finished goods	52		48
Total product inventory	$	462	$	404
Inventoried costs, net	$	1,109	$	978