INVENTORIES POLICIES (Policies)

12 Months Ended

Dec. 31, 2014

INVENTORIES

	(In Millions)
	At December 31
	2014		2013
Finished goods	$	425	$	398
Raw material		294		268
Work in process		100		99

Total	$	819	$	765

Inventories, which include purchased parts, materials, direct labor and applied manufacturing overhead, are stated at the lower of cost or net realizable value, with cost determined by use of the first-in, first-out method.

- Definition

Disclosure of accounting policy for major classes of inventories, bases of stating inventories (for example, lower of cost or market), methods by which amounts are added and removed from inventory classes (for example, FIFO, LIFO, or average cost), loss recognition on impairment of inventories, and situations in which inventories are stated above cost. If inventory is carried at cost, this disclosure includes the nature of the cost elements included in inventory.

+ References+ Details