11 Inventory

	2007 £m	Restated* 2006 £m
Raw materials	223	156
Work in progress	732	766
Long-term contracts work in progress	93	121
Finished goods	1,123	771
Payments on account	32	31
Inventory per balance sheet	2,203	1,845
Progress payments received against other inventory	(426)	(398)
Net inventory after progress payments	1,777	1,447
Inventories stated at net realisable value	154	116
Amount of inventory write-down	79	46
Reversal of inventory write-down	6	7
* Progress payments included in the prior year have been reclassified as follows: received against long-term contracts (£18m) offset against 'Long-term contracts work in progress' above; received against other inventory (£398m) included within 'Trade and other payables'- see note 15.