INVENTORIES

Inventories include raw materials, work-in-process and finished goods.



DOLLAR AMOUNTS IN MILLIONS	JUNE 30, 2014		DECEMBER 31, 2013
LIFO Inventories:
Logs and chips	$	15	$	15
Lumber, plywood and panels	60		46
Pulp and paperboard	112		97
Other products	12		11
FIFO or moving average cost inventories:
Logs and chips	29		33
Lumber, plywood, panels and engineered lumber	89		70
Pulp and paperboard	37		30
Other products	92		94
Materials and supplies	150		146
Total	$	596	$	542

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 $119 million and $112 million higher as of June 30, 2014 and December 31, 2013, respectively.