Inventories, Net

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Inventories, Net

Inventories, Net

Inventories, net of reserves of $137 million and $0 as of June 30, 2020 and December 31, 2019, respectively by category were as follows:

(Dollars in millions)	6/30/2020		12/31/2019
Finished Goods	$	752	$	830
Work in Process and Raw Materials, Components and Supplies	110		142
	$	862	$	972

During the second quarter of 2020, we recognized inventory charges and write-downs of $134 million primarily for excess and obsolete inventory as a result of the decline in oil and gas commodity demand, the downturn in the oil and gas industry and the impact of COVID-19 pandemic. The near-term utilization of certain inventory has been deemed to be commercially unviable or technologically obsolete considering current and anticipated future demand. These inventory charges are included in “Inventory Charges” on the accompanying Condensed Consolidated Statements of Operations.