Inventories

Inventories consisted of the following:



	June 30 2016			December 31 2015
Long-term contracts in progress		$12,516			$13,858
Commercial aircraft programs	53,769			55,230
Commercial spare parts, used aircraft, general stock materials and other	6,123			6,673
Inventory before advances and progress billings	72,408			75,761
Less advances and progress billings	(28,226		)	(28,504		)
Total		$44,182			$47,257

Long-Term Contracts in Progress

Long-term contracts in progress includes Delta launch program inventory that is being sold at cost to United Launch Alliance (ULA) under an inventory supply agreement that terminates on March 31, 2021. The inventory balance was $120 (net of advances of $276) and $120 (net of advances of $310) at June 30, 2016 and December 31, 2015. At June 30, 2016, $176 of this inventory related to unsold launches. See Note 9.

Included in inventories are capitalized precontract costs of $1,561 and $732 primarily related to KC-46A Tanker at June 30, 2016 and December 31, 2015.

Commercial Aircraft Programs

At June 30, 2016 and December 31, 2015, commercial aircraft programs inventory included the following amounts related to the 787 program: $34,123 and $34,656 of work in process (including deferred production costs of $27,673 and $28,510), $2,412 and $2,551 of supplier advances, and $3,707 and $3,890 of unamortized tooling and other non-recurring costs. At June 30, 2016, $22,966 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 $8,414 is expected to be recovered from units included in the program accounting quantity that represent expected future orders.

We produced the fourth and fifth flight test aircraft for the 787 program in 2009 but have been unable to sell them at acceptable prices. The aircraft have been used extensively for flight and ground testing and we intended to begin to refurbish the aircraft in early 2017 for commercial sale based on sales activity and market interest. However, during the second quarter of 2016 we determined that firm orders for these aircraft prior to refurbishment were now unlikely, and that the Company would not invest company funds for their refurbishment. The Company also determined the costs to refurbish the aircraft at a future date would be prohibitively expensive. We have therefore determined that the aircraft are not commercially saleable, and accordingly, costs of $1,235 associated with these aircraft were reclassified from 787 program inventory to research and development expense. The reclassification also impacted 787 deferred production costs, reducing the balance by $1,011 at June 30, 2016.

At June 30, 2016 and December 31, 2015, commercial aircraft programs inventory included the following amounts related to the 747 program: $0 and $942 of deferred production costs, net of reach-forward losses, and $369 and $377 of unamortized tooling costs. At June 30, 2016, $173 of unamortized tooling costs are expected to be recovered from units included in the program accounting quantity that have firm orders and $196 is expected to be recovered from units included in the program accounting quantity that represent expected future orders. At June 30, 2016 and December 31, 2015, work in process inventory included a number of completed 747 aircraft that we expect to recover from future orders.

Commercial aircraft programs inventory included amounts credited in cash or other consideration (early issue sales consideration) to airline customers totaling $3,217 and $3,166 at June 30, 2016 and December 31, 2015.

Used aircraft in inventories at Commercial Airplanes totaled $321 and $267 at June 30, 2016 and December 31, 2015.