INVENTORIES

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



DOLLAR AMOUNTS IN MILLIONS	JUNE 30, 2013		DECEMBER 31, 2012
LIFO Inventories:
Logs and chips	$	17	$	17
Lumber, plywood and panels	65		46
Pulp and paperboard	106		121
Other products	10		8
FIFO or moving average cost inventories:
Logs and chips	29		28
Lumber, plywood, panels and engineered lumber	84		66
Pulp and paperboard	27		19
Other products	83		87
Materials and supplies	140		139
Total	$	561	$	531

The LIFO – the last-in, first-out method – applies to major inventory products held at our U.S. domestic locations. We began to use the LIFO method for domestic products in the 1940s as required to conform with the tax method elected. Subsequent acquisitions of entities added new products under the FIFO - the first-in, first-out method – or moving average cost methods that have continued under those methods. The FIFO or moving average cost methods applies to the balance of our domestic raw material and product inventories as well as for all material and supply inventories and all foreign inventories. If we used FIFO for all inventories, our stated inventories would have been $111 million and $112 million higher as of June 30, 2013 and December 31,2012, respectively.