TEMPORARY INVESTMENTS

ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable, net of allowances, by classification were:



In millions at December 31	2014		2013
Accounts and notes receivable:
Trade	$	2,860	$	3,497
Other	223		259
Total	$	3,083	$	3,756

INVENTORIES



In millions at December 31	2014		2013
Raw materials	$	494	$	372
Finished pulp, paper and packaging products	1,273		1,834
Operating supplies	562		572
Other	95		47
Inventories	$	2,424	$	2,825

The last-in, first-out inventory method is used to value most of International Paper’s U.S. inventories. Approximately 66% of total raw materials and finished products inventories were valued using this method. If the first-in, first-out method had been used, it would have increased total inventory balances by approximately $334 million and $417 million at December 31, 2014 and 2013, respectively.

PLANTS, PROPERTIES AND EQUIPMENT



In millions at December 31	2014		2013
Pulp, paper and packaging facilities	$	31,805	$	32,268
Other properties and equipment	1,263		1,478
Gross cost	33,068		33,746
Less: Accumulated depreciation	20,340		20,074
Plants, properties and equipment, net	$	12,728	$	13,672



In millions	2014		2013		2012
Depreciation expense	$	1,308	$	1,415	$	1,390

INTEREST

Cash payments related to interest were as follows:



In millions	2014		2013		2012
Interest payments	$	718	$	751	$	740

Amounts related to interest were as follows:



In millions	2014		2013		2012
Interest expense (a)	$	677	$	669	$	742
Interest income (a)	70		57		71
Capitalized interest costs	23		17		37


(a)	Interest expense and interest income exclude approximately $38 million, $45 million and $49 million in 2014, 2013 and 2012, respectively, related to investments in and borrowings from variable interest entities for which the Company has a legal right of offset (see Note 12).

In millions at December 31

Temporary Investments