INVENTORY

9 Months Ended

Sep. 30, 2020


9.			INVENTORY

The following table shows the composition of our inventory balances:


($ in millions)	At September 30, 2020		At December 31, 2019
Finished goods(1)	$	751	$	782
Work-in-progress	—		69
Real estate inventory	751		851
Other	10		8
	$	761	$	859

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(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 $4 million during the first three quarters of 2020 and by $2 million during the first three quarters of 2019. Additionally, during the third quarter and the first three quarters of 2020, we recorded $1 million and $6 million, respectively, of inventory impairments.

In addition to the above, at September 30, 2020, we had $173 million of completed vacation ownership units which are 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 $42 million and $38 million of deposits on future purchases of inventory at September 30, 2020 and December 31, 2019, respectively, which are included in the Other assets line on our Balance Sheets.