Note 3: Inventories and Contracts in Progress

6 Months Ended

Jun. 30, 2011

Notes to Condensed Consolidated Financial Statements [Abstract]

Note 3: Inventories and Contracts in Progress

(Dollars in millions)	June 30, 2011		December 31, 2010
Raw materials	$	1,361	$	1,221
Work-in-process		3,709		3,259
Finished goods		3,426		3,026
Contracts in progress		6,795		6,340
		15,291		13,846
Less:
Progress payments, secured by lien, on U.S. Government contracts		(394)		(275)
Billings on contracts in progress		(6,102)		(5,805)
	$	8,795	$	7,766

As of June 30, 2011 and December 31, 2010, the above inventory balances include capitalized contract development costs of $843 million and $804 million, respectively, related to certain aerospace programs. These capitalized costs are liquidated as production units are delivered to the customer. The capitalized contract development costs within inventory principally relate to costs capitalized on Sikorsky's CH-148 contract with the Canadian government. The CH-148 is a derivative of the H-92, a military variant of the S-92.