Dow Chemical 2009 Annual Report Download - page 135

Table of Contents
NOTE F – INVENTORIES
The following table provides a breakdown of inventories:
Inventories at December 31
In millions 2009 2008
Finished goods $ 3,887 $ 3,351
Work in process 1,593 1,217
Raw materials 671 830
Supplies 696 638
Total inventories $ 6,847 $ 6,036
The reserves reducing inventories from a FIFO basis to a LIFO basis amounted to $818 million at December 31, 2009 and $627 million at December 31,
2008. Inventories valued on a LIFO basis, principally hydrocarbon and U.S. chemicals and plastics product inventories, represented 29 percent of the total
inventories at December 31, 2009 and 32 percent of the total inventories at December 31, 2008.
A reduction of certain inventories resulted in the liquidation of some of the Company’s LIFO inventory layers, increasing pretax income $84 million in
2009, decreasing pretax income $45 million in 2008 and increasing pretax income $321 million in 2007.
NOTE G – PROPERTY
Property at December 31 Estimated
In millions
Useful Lives
(Years) 2009 2008
Land - $ 942 $ 590
Land and waterway improvements 15-25 1,342 1,308
Buildings 5-55 4,811 3,700
Machinery and equipment 3-20 39,983 36,285
Utility and supply lines 5-20 2,306 2,248
Other property 3-30 2,170 2,166
Construction in progress - 2,013 2,094
Total property $ 53,567 $ 48,391
In millions 2009 2008 2007
Depreciation expense $ 2,291 $ 2,016 $ 1,959
Manufacturing maintenance and repair costs $ 1,473 $ 1,622 $ 1,482
Capitalized interest $ 61 $ 97 $ 85
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