Inventories

12 Months Ended

Dec. 31, 2023

Inventories are stated at the lower of cost or net realizable value. Cost is determined on the first-in, first-out or weighted moving average method. Our inventory primarily consists of gaming machines and table products for sale and related parts. We determine the lower of cost or net realizable value of our inventory based on estimates of potentially excess and obsolete inventories after considering historical and forecasted demand and average selling prices. Our policy is to continuously review and assess the value of our inventory. We continuously monitor demand, assess our internal outlook and rationalize our product roadmap, all of which could result in recording adjustments to the valuation of inventory.

Inventories consisted of the following:


	As of December 31,
	2023		2022
Parts and work-in-process	$	113	$	124
Finished goods	64		37
Total inventories	$	177	$	161

Parts and work-in-process include parts for gaming machines and our finished goods inventory primarily consist of gaming machines for sale.

We recorded inventory valuation charges (recorded in Cost of products) of $14 million, $5 million and $12 million for the years ended December 31, 2023, 2022 and 2021, respectively.