Annual report pursuant to Section 13 and 15(d)

INVENTORIES

v2.4.0.6
INVENTORIES
 12 Months Ended
Dec. 31, 2011
INVENTORIES  
INVENTORIES

4. INVENTORIES

        Inventories consisted of the following (dollars in millions):

 
   December 31,  
 
   2011   2010  

Raw materials and supplies

   $ 374   $ 321  

Work in progress

     92     99  

Finished goods

     1,162     1,043  
           

Total

     1,628     1,463  

LIFO reserves

     (89 )   (67 )
           

Net

   $ 1,539   $ 1,396  
           

        As of both December 31, 2011 and 2010, approximately 12% of inventories were recorded using the LIFO cost method.

        In the normal course of operations we, at times, exchange raw materials and finished goods with other companies for the purpose of reducing transportation costs. The net non-monetary open exchange positions are valued at cost. The amounts included in inventory under non-monetary open exchange agreements receivable by us for both December 31, 2011 and 2010 were $3 million. Other open exchanges are settled in cash and result in a net deferred profit margin. The amounts under these open exchange agreements for both December 31, 2011 and 2010 were nil.