Inventories are summarized as follows:



	September 27, 2018		December 31, 2017
Raw materials	$	251.3	$	321.0
Work-in-process⁽¹⁾	631.0		854.4
Finished goods	8.9		35.8
Product inventory	891.2		1,211.2
Capitalized pre-production⁽²⁾	39.8		78.9
Deferred production⁽³⁾	—		640.3
Forward loss provision⁽⁴⁾	—		(480.5		)
Total inventory, net	$	931.0	$	1,449.9

(1)

For the period ended September 27, 2018, work-in-process inventory includes direct labor, direct material, overhead and purchases on contracts for which revenue is recognized at a point in time as well as sub-assembly parts that have not been issued to production on contracts for which revenue is recognized using the input method. For the period ended December 31, 2017, work-in-process included direct labor, direct material, overhead and purchases on all contracts that were accounted for using the units of delivery method. For the period ended September 27, 2018, work-in-process inventory includes $152.9 of costs incurred in anticipation of specific contracts and no impairments were recorded in the period.


(2)	As part of the Transition Adjustment, $43.0 (pretax) of pre-production costs on the A350 XWB were eliminated.


(3)	As part of the Transition Adjustment, $640.3 (pretax) of deferred production was eliminated. For the period ended December 31, 2017, the balance contained $632.8 and $129.3 on the A350 XWB and Rolls-Royce BR725 programs, respectively.

(4)

For the period ended September 27, 2018, forward loss reserves of $219.9 have been classified as a liability in the condensed consolidated balance sheet. For the period ended December 31, 2017, the forward loss reserve for the B787 program exceeded the program's inventory balance. This excess was classified as a liability and reported in other current liabilities on the balance sheet in the amount of $254.5 as of December 31, 2017.