INVENTORIES

Our inventories represent primarily business-jet components and are stated at the lower of cost or net realizable value. Work-in-process represents largely labor, material and overhead costs associated with aircraft in the manufacturing process and is based primarily on the estimated average unit cost of the units in a production lot. Raw materials are valued primarily on the first-in, first-out method. We record pre-owned aircraft acquired in connection with the sale of new aircraft at the lower of the trade-in value or the estimated net realizable value. In 2012, we announced that we would cease production of several ruggedized hardware products in our Information Systems and Technology business group. As a result, a $58 loss was recognized to write the related inventory down to net realizable value.

Inventories consisted of the following:



December 31	2011		2012
Work in process	$	1,202	$	1,518
Raw materials	1,031		1,109
Finished goods	77		69
Pre-owned aircraft	—		80
Total inventories	$	2,310	$	2,776