INVENTORY

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

INVENTORY

9. INVENTORY

The following table shows the composition of our inventory balances:

($ in millions)	At September 30, 2022		At December 31, 2021
Real estate inventory(1)	$	659	$	710
Other	9		9
	$	668	$	719

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(1)Represents completed inventory that is registered for sale as vacation ownership interests and vacation ownership inventory expected to be reacquired pursuant to estimated future defaults on originated vacation ownership notes receivable.

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 $15 million during the first three quarters of 2022 and by $6 million during the first three quarters of 2021.

In addition to the above, at September 30, 2022 and December 31, 2021, we had $441 million and $460 million, respectively, of completed vacation ownership units which are classified as a component of Property and equipment, net until the time at which they are available and legally registered for sale as vacation ownership products.