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 65 percent and 63 percent of worldwide gross inventories at FIFO value at October 31, 2014 and 2013 respectively. The pretax favorable income effect from the liquidation of LIFO inventory during 2014 was approximately $13 million. 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:


	2014		2013

Raw materials and supplies	$	1,724	$	1,954
Work-in-process	654		753
Finished goods and parts	3,360		3,757
Total FIFO value	5,738		6,464
Less adjustment to LIFO value	1,528		1,529
Inventories	$	4,210	$	4,935