Inventories and Equipment on Operating Leases, Net

9 Months Ended

Sep. 30, 2019

Inventories and Equipment on Operating Leases, Net [Abstract]

Inventories and Equipment on Operating Leases, Net

The following is a summary of Inventories by major category:



	September 30, 2019		December 31, 2018
Finished goods	$	623	$	699
Work-in-process	61		49
Raw materials	74		70
Total Inventories	$	758	$	818

The transfer of equipment from our inventories to equipment subject to an operating lease is presented in our Condensed Consolidated Statements of Cash Flows in the operating activities section. Equipment on operating leases and similar arrangements consists of our equipment rented to customers and depreciated to estimated salvage value at the end of the lease term. Amounts disclosed below at December 31, 2018 were accounted for under ASC 840, Leases, which was superseded by ASC 842, Leases, adopted on January 1, 2019. Differences upon adoption were not material. Refer to Note 2 - Recent Accounting Pronouncements for additional information.

Equipment on operating leases and the related accumulated depreciation were as follows:



	September 30, 2019			December 31, 2018
Equipment on operating leases	$	1,457		$	1,519
Accumulated depreciation	(1,083		)	(1,077		)
Equipment on operating leases, net	$	374		$	442

Estimated minimum future revenues associated with Equipment on operating leases are as follows:



	September 30, 2019		December 31, 2018
2019⁽¹⁾	$	63	$	260
2020	222		178
2021	140		111
2022	79		61
2023	36		21
Thereafter	9		2
Total	$	549	$	633

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(1)	2019 amount represents the future minimum revenues expected to be earned over the remaining balance of the year.

Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, were $25 and $28 for the three months ended September 30, 2019 and 2018, respectively, and $80 and $89 for the nine months ended September 30, 2019 and 2018, respectively.