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Inventories | 6 Months Ended
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Jun. 30, 2020
Inventory Disclosure [Abstract] |
Inventories | Inventories Inventories consisted of the following:
|  | As of |  |
|  | June 30, 2020 |  | December 31, 2019
Parts and work-in-process |  | $ | 140 |  |  | $ | 153 |
Finished goods |  | 93 |  |  | 91 |
Total inventories |  | $ | 233 |  |  | $ | 244 |
Parts and work-in-process include parts for gaming machines, lottery terminals and instant lottery ticket materials, as well as labor and overhead costs for work-in-process associated with the manufacturing of instant lottery games and lottery terminals. Our finished goods inventory primarily consists of gaming machines for sale, instant products primarily for our Participation arrangements and our licensed branded merchandise. During the three and six months ended June 30, 2020, we recorded $21 million and $30 million, respectively, in inventory valuation charges (recorded in Cost of products sales) related to inventory in our Gaming business segment. Our new Gaming leadership team brought in late in the first quarter of 2020 began to set a new strategic plan for the Gaming business late in the second quarter of 2020. This new strategic plan includes revising product roadmaps and an assessment of how many and which platforms we will support, when we end service on legacy platforms and when we stop selling on such platforms in conjunction with new product launches. This new approach, combined with the rapid demand reduction that took place in the second quarter largely as a result of the COVID-19 disruptions, required us to reassess our inventory valuation, including whether we had excess or obsolete inventory based on the new strategic plan and related demand. In addition, the continued closures in the LATAM region make it difficult to execute our previous strategy of shipping legacy platforms into that market. The combination of these factors led to the $21 million inventory valuation charge recognized in the three months ended June 30, 2020. Our policy is to continue to review and assess these and other factors, especially during the COVID-19 disruption periods, and if such factors or our outlook changes, we record adjustments to the valuation of inventory.

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- Definition The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 330 -URI http://asc.fasb.org/topic&trid=2126998 + Details
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