Inventories

Inventories consisted of the following:



	June 30 2012			December 31 2011
Long-term contracts in progress		$14,553			$13,587
Commercial aircraft programs	38,592			35,080
Commercial spare parts, used aircraft, general stock materials and other	6,749			7,832
Inventory before advances and progress billings	59,894			56,499
Less advances and progress billings	(24,861		)	(24,259		)
Total		$35,033			$32,240

Long-Term Contracts in Progress

Long-term contracts in progress included Delta launch program inventory that will be sold at cost to United Launch Alliance (ULA) under an inventory supply agreement that terminates on March 31, 2021. At June 30, 2012 and December 31, 2011, the inventory balance was $965 and $1,085. At June 30, 2012, $571 of this inventory related to unsold launches. ULA is continuing to assess the future of the Delta II program. In the event ULA is unable to sell additional Delta II inventory, our earnings could be reduced by up to $50. See Note 10.

Inventory balances included $237 and $236 subject to claims or other uncertainties relating to the A-12 program at June 30, 2012 and December 31, 2011. See Note 15.

Capitalized precontract costs of $236 and $1,728 at June 30, 2012 and December 31, 2011, are included in inventories.

Commercial Aircraft Programs

At June 30, 2012 and December 31, 2011, commercial aircraft programs inventory included the following amounts related to the 787 program: $19,494 and $16,098 of work in process (including deferred production costs of $13,184 and $10,753), $1,852 and $1,770 of supplier advances, and $2,145 and $1,914 of unamortized tooling and other non-recurring costs. At June 30, 2012, $10,925 of 787 deferred production costs, unamortized tooling and other non-recurring costs are expected to be recovered from units included in the program accounting quantity that have firm orders and $4,404 is expected to be recovered from units included in the program accounting quantity that represent expected future orders.

At June 30, 2012 and December 31, 2011, commercial aircraft programs inventory included the following amounts related to the 747 program: $765 and $448 of deferred production costs, net of previously recorded reach-forward losses, and $778 and $852 of unamortized tooling. At June 30, 2012, $916 of 747 deferred production costs and unamortized tooling costs are expected to be recovered from units included in the program accounting quantity that have firm orders and $627 is expected to be recovered from units included in the program accounting quantity that represent expected future orders.

Commercial aircraft programs inventory included amounts credited in cash or other consideration (early issue sales consideration) to airline customers totaling $2,776 and $2,564 at June 30, 2012 and December 31, 2011.