INVENTORIES

Forest Products inventories include raw materials, work-in-process and finished goods.



DOLLAR AMOUNTS IN MILLIONS	SEPTEMBER 30, 2011			DECEMBER 31, 2010
Logs and chips	$	57		$	66
Lumber, plywood, panels and engineered lumber	140			164
Pulp and paperboard	167			157
Other products	80			79
Materials and supplies	136			133
	$	580		$	599
Less LIFO reserve	(112		)	(121		)
Total	$	468		$	478

The LIFO – the last-in, first-out method – inventory reserve applies to major inventory products held at our U.S. domestic locations. These inventory products include grade and fiber logs, chips, lumber, plywood, oriented strand board, pulp and paperboard.