INVENTORIES

Inventories are stated at the lower of cost or market. Cost was determined by the first-in, first-out method at June 30, 2016 and December 31, 2015. Inventories are reduced by an allowance for excess and obsolete inventories based on management’s review of on-hand inventories compared to historical and estimated future sales and usage.

Net inventories consist of the following:



	June 30			December 31
	2016			2015
Raw materials	$	277		$	254
Work-in-process	190			175
Finished products	1,011			1,027
	1,478			1,456
Inventory valuation allowance	(130		)	(114		)
	$	1,348		$	1,342