Supplemental Balance Sheet Information

INVENTORIES

Inventories as of December 31 consisted of the following:



(millions)	2014		2013
Finished goods and work in progress	$	267	$	270
Raw materials	62		62
Total	$	329	$	332

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment as of December 31 consisted of the following:



(millions)	2014			2013
Land and mineral deposits	$	135		$	181
Buildings and improvements	1,095			1,139
Machinery and equipment	2,563			2,623
	3,793			3,943
Reserves for depreciation and depletion	(1,885		)	(1,840		)
Total	$	1,908		$	2,103
Annual depreciation and depletion expense	$	134		$	135

ACCRUED EXPENSES

Accrued expenses as of December 31 consisted of the following:



(millions)	2014		2013
Self-insurance reserves	$	21	$	22
Employee compensation	42		58
Interest	45		48
Restructuring	1		3
Derivatives	18		—
Pension and other postretirement benefits	22		14
Environmental	16		18
Other	55		53
Total	$	220	$	216

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in the balances of each component of accumulated other comprehensive income (loss), or AOCI, are summarized in the following table:



(millions)	Derivatives			Pension and Other Postretirement Benefit Plans			Foreign Currency Translation			Total AOCI
Balance as of January 1, 2012	$	28		$	(221	)	$	19		$	(174	)
Other comprehensive income (loss) before reclassifications	(5		)	(81		)	22			(64		)
Less: Amounts reclassified from AOCI, net of tax	(9		)	1			3			(5		)
Other comprehensive income (loss), net of tax	4			(82		)	19			(59		)
Balance as of December 31, 2012	$	32		$	(303	)	$	38		$	(233	)
Other comprehensive income (loss) before reclassifications	4			247			(17		)	234
Less: Amounts reclassified from AOCI, net of tax	1			(24		)	—			(23		)
Other comprehensive income (loss), net of tax	3			271			(17		)	257
Balance as of December 31, 2013	$	35		$	(32	)	$	21		$	24
Other comprehensive loss before reclassifications	(15		)	(272		)	(68		)	(355		)
Less: Amounts reclassified from AOCI, net of tax	4			(2		)	5			7
Other comprehensive loss, net of tax	(19		)	(270		)	(73		)	(362		)
Balance as of December 31, 2014	$	16		$	(302	)	$	(52	)	$	(338	)

Amounts reclassified from AOCI, net of tax, for the years ended December 31, 2014 and 2013, were as follows:



(millions)	2014			2013
Derivatives
Net reclassification from AOCI for cash flow hedges included in cost of products sold	$	4		$	1
Income tax expense on reclassification from AOCI included in income tax expense (benefit)	—			—
Net amount reclassified from AOCI	$	4		$	1

Defined Benefit Plans
Net reclassification from AOCI for amortization of prior service cost included in cost of products sold	$	7		$	(19	)
Net reclassification from AOCI for amortization of prior service cost included in selling and administrative expenses	(10		)	(7		)
Income tax expense on reclassification from AOCI included in income tax expense (benefit)	1			2
Net amount reclassified from AOCI	$	(2	)	$	(24	)

Foreign Currency Translation
Net reclassification from AOCI for translation gains realized upon the deconsolidation of foreign subsidiaries included in gain on deconsolidation	$	5		$	—
Income tax expense on reclassification from AOCI included in income tax expense (benefit)	—			—
Net amount reclassified from AOCI	$	5		$	—

We estimate that we will reclassify a net $10 million after-tax loss on derivatives from AOCI to earnings within the next 12 months.

ASSET RETIREMENT OBLIGATIONS

Changes in our liability for asset retirement obligations during 2014 and 2013 consisted of the following:



(millions)	2014			2013
Balance as of January 1	$	132		$	139
Accretion expense	7			8
Liabilities incurred	2			3
Changes in estimated cash flows (a)	(13		)	(11		)
Liabilities settled	(2		)	(4		)
Foreign currency translation	(3		)	(3		)
Balance as of December 31	$	123		$	132


(a)	Changes in estimated cash flows for the year ended December 31, 2014 includes changes in estimates primarily for our gypsum quarry and ship loading facility in Windsor, Nova Scotia, Canada, which we permanently closed during the third quarter of 2011, and our mining operation in Little Narrows, Nova Scotia, Canada as a result of receiving regulatory approval of a revised reclamation plan in 2014.

Our asset retirement obligations include reclamation requirements as regulated by government authorities related principally to assets such as our mines, quarries, landfills, ponds and wells. The accounting for asset retirement obligations requires estimates by management about the timing of asset retirements, the cost of retirement obligations, discount and inflation rates used in determining fair values and the methods of remediation associated with our asset retirement obligations. We generally use assumptions and estimates that reflect the most likely remediation method on a site-by-site basis. Our estimated liability for asset retirement obligations is revised annually, and whenever events or changes in circumstances indicate that a revision to the estimate is necessary.

In instances where a decrease in the asset retirement obligation is in excess of the related remaining net book value of the asset retirement costs, the excess is recorded to the consolidated statement of operations as a reduction in cost of products sold. Asset retirement obligations are included in other liabilities on the consolidated balance sheets.