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Inventories
6 Months Ended
Jun. 30, 2020
Inventory Disclosure [Abstract]  
Inventories

NOTE D. INVENTORIES

Inventories consisted of the following components (dollars in millions):

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Purchased parts and raw materials

 

$

90

 

 

$

91

 

Work in progress

 

 

20

 

 

 

17

 

Service parts

 

 

55

 

 

 

60

 

Finished goods

 

 

36

 

 

 

31

 

Total inventories

 

$

201

 

 

$

199

 

 

Inventory components shipped to third parties, primarily cores, parts to re-manufacturers, and parts to contract manufacturers, which the Company has an obligation to buy back, are included in purchased parts and raw materials, with an offsetting liability in Other current liabilities. See NOTE L, “Other Current Liabilities” for more information.