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&lt;p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;2.
INVENTORIES&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;Inventories are comprised
of the following:&lt;/font&gt;&lt;/p&gt;
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&amp;#xA0;&lt;/p&gt;
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&lt;tr&gt;
&lt;td width="84%"&gt;&lt;/td&gt;
&lt;td valign="bottom" width="2%"&gt;&lt;/td&gt;
&lt;td&gt;&lt;/td&gt;
&lt;td&gt;&lt;/td&gt;
&lt;td valign="bottom" width="2%"&gt;&lt;/td&gt;
&lt;td&gt;&lt;/td&gt;
&lt;td&gt;&lt;/td&gt;
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&lt;font style="FONT-FAMILY: Times New Roman" size="1"&gt;&lt;b&gt;(&amp;#xA5; in
millions)&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
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&lt;td valign="bottom"&gt;&lt;font size="1"&gt;&amp;#xA0;&amp;#xA0;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" colspan="2"&gt;&lt;font size="1"&gt;&amp;#xA0;&lt;/font&gt;&lt;/td&gt;
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&lt;tr&gt;
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&lt;p style="BORDER-BOTTOM: #000000 1px solid; WIDTH: 46pt"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="1"&gt;&lt;b&gt;At March
31:&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
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&lt;td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="1"&gt;&lt;b&gt;2010&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom"&gt;&lt;font size="1"&gt;&amp;#xA0;&amp;#xA0;&lt;/font&gt;&lt;/td&gt;
&lt;td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="1"&gt;&lt;b&gt;2009&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
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&lt;td valign="top"&gt;
&lt;p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;Finished
products&lt;/font&gt;&lt;/p&gt;
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&lt;td valign="bottom"&gt;&lt;font size="1"&gt;&amp;#xA0;&amp;#xA0;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;&amp;#xA5;&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" align="right"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;111,280&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom"&gt;&lt;font size="1"&gt;&amp;#xA0;&amp;#xA0;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&amp;#xA5;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" align="right"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;132,125&lt;/font&gt;&lt;/td&gt;
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&lt;td valign="top"&gt;
&lt;p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;Spare parts&lt;/font&gt;&lt;/p&gt;
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&lt;td valign="bottom"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;&amp;#xA0;&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" align="right"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;23,544&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom"&gt;&lt;font size="1"&gt;&amp;#xA0;&amp;#xA0;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&amp;#xA0;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" align="right"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;23,848&lt;/font&gt;&lt;/td&gt;
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&lt;td valign="top"&gt;
&lt;p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;Work in process&lt;/font&gt;&lt;/p&gt;
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&lt;td valign="bottom"&gt;&lt;font size="1"&gt;&amp;#xA0;&amp;#xA0;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;&amp;#xA0;&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" align="right"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;22,498&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
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&lt;td valign="bottom" align="right"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;31,165&lt;/font&gt;&lt;/td&gt;
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&lt;p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;Raw materials and
supplies&lt;/font&gt;&lt;/p&gt;
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&lt;td valign="bottom"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;&amp;#xA0;&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" align="right"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;15,001&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
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&lt;td valign="bottom"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&amp;#xA0;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" align="right"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;20,263&lt;/font&gt;&lt;/td&gt;
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&lt;tr style="FONT-SIZE: 1px"&gt;
&lt;td valign="bottom"&gt;&lt;/td&gt;
&lt;td valign="bottom"&gt;&amp;#xA0;&amp;#xA0;&lt;/td&gt;
&lt;td style="BORDER-TOP: #000000 1px solid" valign="bottom"&gt;
&amp;#xA0;&lt;/td&gt;
&lt;td style="BORDER-TOP: #000000 1px solid" valign="bottom"&gt;
&amp;#xA0;&lt;/td&gt;
&lt;td valign="bottom"&gt;&amp;#xA0;&amp;#xA0;&lt;/td&gt;
&lt;td style="BORDER-TOP: #000000 1px solid" valign="bottom"&gt;
&amp;#xA0;&lt;/td&gt;
&lt;td style="BORDER-TOP: #000000 1px solid" valign="bottom"&gt;
&amp;#xA0;&lt;/td&gt;
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&lt;td valign="top"&gt;&lt;/td&gt;
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&lt;td valign="bottom"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;&amp;#xA5;&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
&lt;td valign="bottom" align="right"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;172,323&lt;/b&gt;&lt;/font&gt;&lt;/td&gt;
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&lt;td valign="bottom" align="right"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;207,401&lt;/font&gt;&lt;/td&gt;
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&lt;td valign="bottom"&gt;&lt;/td&gt;
&lt;td valign="bottom"&gt;&amp;#xA0;&amp;#xA0;&lt;/td&gt;
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&amp;#xA0;&lt;/td&gt;
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&amp;#xA0;&lt;/td&gt;
&lt;td style="BORDER-TOP: #000000 3px double" valign="bottom"&gt;
&amp;#xA0;&lt;/td&gt;
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          <NonNumericTextHeader>2.
INVENTORIES
Inventories are comprised
of the following:

&amp;#xA0;













(&amp;#xA5; in
millions)

&amp;#xA0;&amp;#xA0;
&amp;#xA0;
&amp;#xA0;&amp;#xA0;
&amp;#xA0;




At</NonNumericTextHeader>
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      <ElementDefenition>This element represents the complete disclosure related to inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.</ElementDefenition>
      <ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef
 -Publisher AICPA
 -Name Accounting Research Bulletin (ARB)
 -Number 43
 -Chapter 3
 -Section A
 -Paragraph 9

Reference 2: http://www.xbrl.org/2003/role/presentationRef
 -Publisher SEC
 -Name Regulation S-X (SX)
 -Number 210
 -Section 02
 -Paragraph 6
 -Subparagraph a, b, c
 -Article 5

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