15. INVENTORIES

Most inventories owned by Deere & Company and its U.S. equipment subsidiaries are valued at cost, on the “last-in, first-out” (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the “first-in, first-out” (FIFO) basis, or market. The value of gross inventories on the LIFO basis represented 61 percent and 66 percent of worldwide gross inventories at FIFO value at October 31, 2016 and 2015, respectively. The pretax favorable income effects from the liquidation of LIFO inventory during 2016 and 2015 were approximately $4 million and $22 million, respectively. If all inventories had been valued on a FIFO basis, estimated inventories by major classification at October 31 in millions of dollars would have been as follows:


	2016		2015
Raw materials and supplies	$	1,369	$	1,559
Work-in-process		453		450
Finished goods and parts		2,976		3,234
Total FIFO value		4,798		5,243
Less adjustment to LIFO value		1,457		1,426
Inventories	$	3,341	$	3,817