Inventories

6 Months Ended

Jun. 30, 2019

INVENTORIES

The majority of our inventories are for business-jet aircraft. Our inventories 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 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:



	June 30, 2019		December 31, 2018
Work in process	$	4,749	$	4,357
Raw materials	1,587		1,504
Finished goods	25		33
Pre-owned aircraft	119		83
Total inventories	$	6,480	$	5,977

The increase in total inventories during the six-month period ended June 30, 2019, was due primarily to the ramp-up in production of the new G600 aircraft in our Aerospace segment. We received both type and production certification from the U.S. Federal Aviation Administration (FAA) for the G600 aircraft in June 2019, and we are anticipating deliveries of the newly-certified aircraft to begin in the third quarter of 2019.