Inventories

9 Months Ended

Sep. 30, 2021

5. Inventories

Inventory by major classification was as follows:


	September 30, 2021		December 31, 2020
Finished goods	$	782	$	758
Work in process	517		449
Raw materials	503		441
Materials and supplies	91		95
Total inventories	$	1,893	$	1,743

In the second quarter of 2020, the Motorparts segment initiated a rationalization of its supply chain and distribution network to achieve supply chain efficiencies and improve throughput to its customers. As a result, it was determined that certain assets, including inventory, real estate, and personal property, would no longer be utilized. As part of management's ongoing efforts related to this initiative, during the nine months ended September 30, 2021, the Motorparts segment recognized an additional non-cash charge of $44 million to write-down inventory to its net realizable value, an additional $1 million impairment charge to write-down property, plant and equipment, and $3 million in restructuring charges related to cash severance benefits and other costs.

During the nine months ended September 30, 2020, the Motorparts segment recognized an $82 million non-cash charge to write-down inventory to its net realizable value, a $16 million impairment charge to write-down property, plant, and equipment to its fair value, a $9 million impairment charge to its operating lease right-of-use assets, and $4 million in restructuring charges related to cash severance benefits. Refer to Note 4, “Restructuring Charges, Net and Asset Impairments” for additional information.