Inventories, Net

12 Months Ended

Dec. 31, 2011

Note 6 – Inventories, net

Inventories consisted of the following components:


(In millions)	*2011*			2010
Work-in-process, primarily related to long-term contracts and programs in progress	$	7,129		$	6,508
Less: customer advances and progress payments		(5,425	)		(4,788	)
		1,704			1,720
Other inventories		777			643
Total inventories, net	$	2,481		$	2,363

Work-in-process inventories at December 31, 2011 and 2010 included general and administrative costs of $592 million and $518 million. During 2011, 2010, and 2009, general and administrative costs incurred and recorded in inventories totaled $2.3 billion, $2.3 billion, and $2.4 billion, and general and administrative costs charged to cost of sales from inventories totaled $2.2 billion, $2.4 billion, and $2.1 billion.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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