Registration of securities issued in business combination transactions

INVENTORIES

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INVENTORIES
 12 Months Ended
Dec. 31, 2012
INVENTORIES  
INVENTORIES

4. INVENTORIES

        Inventories consisted of the following (dollars in millions):

 
   December 31,  
 
   2012   2011  

Raw materials and supplies

   $ 484   $ 374  

Work in progress

     98     92  

Finished goods

     1,311     1,162  
           

Total

     1,893     1,628  

LIFO reserves

     (74 )   (89 )
           

Net

   $ 1,819   $ 1,539  
           

        As of December 31, 2012 and 2011, approximately 11% and 12%, respectively, 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 December 31, 2012 and 2011 were $6 million and $3 million, respectively. 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, 2012 and 2011 were nil.