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.

Inventories consisted of the following:



	July 3, 2016		December 31, 2015
Work in process	$	2,079	$	1,889
Raw materials	1,335		1,376
Finished goods	26		28
Pre-owned aircraft	80		73
Total inventories	$	3,520	$	3,366