INVENTORIES

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



DOLLAR AMOUNTS IN MILLIONS	MARCH 31, 2016		DECEMBER 31, 2015
LIFO Inventories:
Logs and chips	$	28	$	15
Lumber, plywood and panels	57		48
Pulp and paperboard	109		111
Other products	13		11
FIFO or moving average cost inventories:
Logs and chips	71		38
Lumber, plywood, panels and engineered wood products	94		75
Pulp and paperboard	37		32
Other products	100		90
Materials and supplies	168		148
Total	$	677	$	568

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 $123 million as of March 31, 2016 and $124 million as of December 31, 2015.