INVENTORIES

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



DOLLAR AMOUNTS IN MILLIONS	JUNE 30, 2015		DECEMBER 31, 2014
LIFO Inventories:
Logs and chips	$	14	$	9
Lumber, plywood and panels	69		55
Pulp and paperboard	110		122
Other products	15		11
FIFO or moving average cost inventories:
Logs and chips	30		38
Lumber, plywood, panels and engineered wood products	86		80
Pulp and paperboard	31		35
Other products	98		96
Materials and supplies	150		149
Total	$	603	$	595

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 higher by $118 million as of June 30, 2015 and $120 million as of December 31, 2014.