Inventories and Contracts in Progress
 9 Months Ended
Sep. 30, 2017
Inventory Disclosure [Abstract]  
Inventories and Contracts in Progress [Text Block]
Inventories and Contracts in Progress
(Dollars in millions)
September 30, 2017
 
December 31, 2016
Raw materials
$
2,189

 
$
2,040

Work-in-process
3,453

 
2,787

Finished goods
3,715

 
3,305

Contracts in progress
10,417

 
9,395

 
19,774

 
17,527

Less:
 
 
 
Progress payments, secured by lien, on U.S. Government contracts
(224
)
 
(130
)
Billings on contracts in progress
(9,467
)
 
(8,693
)
 
$
10,083

 
$
8,704


Inventories include capitalized contract development costs related to certain aerospace programs at UTC Aerospace Systems. As of September 30, 2017 and December 31, 2016, these capitalized costs were $130 million and $140 million, respectively, which will be liquidated as production units are delivered to customers. Within commercial aerospace, inventory costs attributable to new engine offerings are recognized based on the average cost per unit expected over the life of each contract using the units-of-delivery method of percentage of completion accounting. Under this method, costs of initial engine deliveries in excess of the projected contract per unit average cost are capitalized, and these capitalized amounts are subsequently expensed as additional engine deliveries occur for engines with costs below the projected contract per unit average cost over the life of the contract. As of September 30, 2017 and December 31, 2016, inventory included $357 million and $233 million, respectively, of such capitalized amounts.