INVENTORIES



December 31,	2012			2011
Finished products	$	4,519		$	4,541
Semifinished products	2,407			2,293
Raw materials, stores and supplies	1,332			1,262
	8,258			8,096
Adjustment of inventories to a LIFO basis	(836		)	(901		)
	$	7,422		$	7,195

Inventory values, before LIFO adjustment, are generally determined by the average cost method, which approximates current cost. Domestic and foreign inventories, excluding seeds, certain food-ingredients, enzymes, stores and supplies, valued under the LIFO method comprised 85 percent and 78 percent of consolidated inventories before LIFO adjustment as of December 31, 2012 and 2011, respectively. Seed, certain food-ingredient and enzyme inventories of $3,926 and $3,432 at December 31, 2012 and 2011, respectively, were valued under the FIFO method. Stores and supplies inventories of $263 and $258 at December 31, 2012 and 2011, respectively, were valued under the average cost method.

Effective January 1, 2013, the company changed its method of valuing inventory held at certain of its foreign and U.S. locations from the LIFO method to the average cost method. The company believes that the average cost method is preferable to the LIFO method as it more clearly aligns with how the company actually manages its inventory and will improve financial reporting by better matching revenues and expenses. In addition, the change from LIFO to average cost will enhance the comparability of our financial results with our peer companies. The impact of this change on income from continuing operations is $21, $(73), and $2 for 2012, 2011 and 2010, respectively. As described in the accounting guidance for accounting changes and error corrections, beginning with the first quarter 2013, the comparative Consolidated Financial Statements of prior periods will be adjusted to apply the new accounting method retrospectively.