INVENTORIES

Inventories include raw materials, work-in-process and finished goods.



DOLLAR AMOUNTS IN MILLIONS	SEPTEMBER 30, 2014		DECEMBER 31, 2013
LIFO Inventories:
Logs and chips	$	12	$	15
Lumber, plywood and panels	54		46
Pulp and paperboard	109		97
Other products	10		11
FIFO or moving average cost inventories:
Logs and chips	32		33
Lumber, plywood, panels and engineered lumber	85		70
Pulp and paperboard	28		30
Other products	96		94
Materials and supplies	152		146
Total	$	578	$	542

LIFO – the last-in, first-out method – applies to major inventory products held at our U.S. domestic locations. We began to use the LIFO method for domestic products in the 1940s as required to conform with the tax method elected. Subsequent acquisitions of entities added new products under the FIFO - the first-in, first-out method – or moving average cost methods that have continued under those methods. The FIFO or moving average cost methods applies to the balance of our domestic raw material and product inventories as well as for all material and supply inventories and all foreign inventories. If we used FIFO for all inventories, our stated inventories would have been $116 million and $112 million higher as of September 30, 2014 and December 31, 2013, respectively.