Inventoried Costs, Net

12 Months Ended

Dec. 31, 2024

Inventory Disclosure [Abstract]

Inventoried Costs, Net

5. 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.

Inventoried costs, net consisted of the following:

	December 31
$ in millions	2024		2023
Raw materials	$	293	$	338
Work in process	1,118		719
Finished goods	44		52
Inventoried costs, net	$	1,455	$	1,109

Inventoried costs, net increased $346 million, or 31 percent, largely due to an increase in costs incurred for specific anticipated contracts to reduce customer delivery lead times.

The company recorded write-downs of commercial business inventory at Space Systems for which its cost exceeded net realizable value of $43 million during the year ended December 31, 2023. In addition, 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.