INVENTORY

3 Months Ended

Mar. 31, 2020



9.	INVENTORY

The following table shows the composition of our inventory balances:



($ in millions)	At March 31, 2020		At December 31, 2019
Finished goods⁽¹⁾	$	741	$	777
Work-in-progress	21		69
Real estate inventory	762		846
Other	14		13
	$	776	$	859

_________________________


⁽¹⁾	Represents completed inventory that is registered for sale as vacation ownership interests and inventory expected to be acquired pursuant to estimated future foreclosures.

We value vacation ownership products at the lower of cost or fair market value less costs to sell, in accordance with applicable accounting guidance, and we record operating supplies at the lower of cost (using the first-in, first-out method) or net realizable value. Product cost true-up activity relating to vacation ownership products increased carrying values of inventory by $8 million during the first quarter of 2020 and increased by $3 million during the first quarter of 2019. Additionally, during the first quarter of 2020, we recorded a $4 million impairment to Inventory.

In addition to the above, at March 31, 2020, we had $147 million of completed vacation ownership units which have been classified as a component of Property and equipment until the time at which they are legally registered for sale as vacation ownership products. We also have $39 million and $38 million of deposits on future purchases of inventory at March 31, 2020 and December 31, 2019, respectively, which are included in the Other assets line on our Balance Sheets.