Note 8. Inventory and Related Property:

(Dollars in Thousands)

Cost Allowance
for Loss		 FY 2004
Net		 FY 2003
Net
Inventory:
  Inventory Held for Current Sale  $      78,396  $              -  $      78,396  $      89,443
  Excess, Obsolete and Unserviceable Inventory          18,801           5,839          12,962          14,042
  Inventory Held for Repair        405,171         83,660        321,511        330,189
  Other          13,632                  -          13,632          13,632
    Total Inventory  $    516,000  $     89,499  $    426,501  $    447,306
       
Operating Materials and Supplies:
  Items Held for Use  $    420,507  $     16,873  $    403,634  $    446,497
  Items Held in Reserve for Future Use          69,644                  -          69,644                   -
  Excess, Obsolete and Unserviceable Items          80,160         68,541          11,619          15,409
  Items Held for Repair            5,738           3,623            2,115                   -
  Other                   -                  -                   -                   -
    Total Operating Materials & Supplies  $    576,049  $     89,037  $    487,012  $    461,906
       
      Total Inventory and Related Property      $    913,513  $    909,212

All DOT inventory is in FAA and the OST Working Capital Fund.  Valuation methods used include moving weighted average, standard price/specific identification, and last acquisition price. 

DOT operating materials and supplies are in FAA and MARAD.  Valuation methods used include historical cost, last acquisition price, standard price/specific identification, standard repair cost, weighted average, and moving weighted average.  The only restriction on use is that FAA is not permitted to donate.