Inventories

Inventories are stated at the lower of cost or market. In the United States, we manufacture certain finished products and parts inventories for drill bits, completion products, bulk materials, and other tools that are recorded using the last-in, first-out method and totaled $120 million at December 31, 2015 and $227 million at December 31, 2014. If the average cost method had been used, there would have been no difference reported at December 31, 2015 and total inventories would have been $38 million higher than reported at December 31, 2014. The cost of the remaining inventory was recorded on the average cost method. Inventories consisted of the following:



	December 31
Millions of dollars	2015		2014
Finished products and parts	$	1,747	$	2,606
Raw materials and supplies	548		754
Work in process	122		211
Total	$	2,417	$	3,571

We reclassified $576 million of our inventory to assets held for sale as of December 31, 2015. See Note 2 for further information. Additionally, as a result of the downturn in the energy market and its corresponding impact on our business outlook, we recorded inventory write-downs as the cost of some of our inventory exceeded its market value. See Note 3 for further information about impairments and other charges.

Finished products and parts are reported net of obsolescence reserves of $218 million at December 31, 2015 and $161 million at December 31, 2014.