content_image/59621.jpg content_image/59623.jpg content_image/59622.jpg content_image/59624.jpg
Activity related to restructuring initiatives was as follows: 

## Exit Costs 

<img src='content_image/59621.jpg'>

## 333 NOTE E: CONTRACTS IN PROCESS 

Contracts in process consisted of the following at December 31, 2003: 

<img src='content_image/59623.jpg'>

Contracts in process consisted of the following at December 31, 2002: 

<img src='content_image/59622.jpg'>

The U.S. government has title to the assets related to unbilled amounts on contracts that provide for progress payments. Unbilled amounts are primarily recorded on the percentage of completion method and are recoverable from the customer upon shipment of the product, presentation of billings, or completion of the contract. 

Included in contracts in process at December 31, 2003 and 2002 was $77 million and $113 million, respectively, related to claims on contracts, which were recorded at their estimated realiz- able value. The Company believes that it has a legal basis for pur- suing recovery of these claims and that collection is probable. The settlement of these amounts depends on individual circumstances and negotiations with the counterparty, therefore, the timing of the collection will vary and approximately $18 million of collections are expected to extend beyond one year. 

Billed and unbilled contracts in process include retentions aris- ing from contractual provisions. At December 31, 2003, reten- tions amounted to $22 million and are anticipated to be collected as follows: $12 million in 2004, $1 million in 2005, and the bal- ance thereafter. 

## 333 NOTE F: INVENTORIES 

Inventories consisted of the following at December 31: 

<img src='content_image/59624.jpg'>

