INVENTORIES

12 Months Ended

Oct. 31, 2021

INVENTORIES

INVENTORIES

15. INVENTORIES

A majority of inventory 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 net realizable value. The value of gross inventories on the LIFO basis at October 31, 2021 and November 1, 2020 represented 54 percent and 52 percent, respectively, of worldwide gross inventories at FIFO value. The pretax favorable income effect from the liquidation of LIFO inventory during 2020 was $33 million. If all inventories had been valued on a FIFO basis, estimated inventories by major classification at October 31, 2021 and November 1, 2020 in millions of dollars would have been as follows:

	2021		2020
Raw materials and supplies	$	3,524	$	1,995
Work-in-process		994		648
Finished goods and parts		4,373		4,006
Total FIFO value		8,891		6,649
Less adjustment to LIFO value		2,110		1,650
Inventories	$	6,781	$	4,999