Dow Chemical 2015 Annual Report Download - page 98
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88
NOTE 7 – INVENTORIES
The following table provides a breakdown of inventories:
Inventories at December 31
In millions 2015 2014
Finished goods $ 3,850 $ 4,547
Work in process 1,506 1,905
Raw materials 747 797
Supplies 768 852
Total inventories $ 6,871 $ 8,101
The reserves reducing inventories from a FIFO basis to a LIFO basis amounted to $8 million at December 31, 2015 and
$569 million at December 31, 2014. Inventories valued on a LIFO basis, principally hydrocarbon and U.S. chemicals and
plastics product inventories, represented 30 percent of the total inventories at December 31, 2015 and 29 percent of total
inventories at December 31, 2014.
A reduction of certain inventories resulted in the liquidation of some of the Company’s LIFO inventory layers, increasing
pretax income $3 million in 2015, decreasing pretax income $23 million in 2014 and increasing pretax income $55 million in
2013.
NOTE 8 – PROPERTY
Property at December 31
In millions
Estimated Useful
Lives (Years) 2015 2014
Land — $ 855 $ 874
Land and waterway improvements 15-25 1,282 1,374
Buildings 5-55 4,793 4,910
Machinery and equipment 3-20 35,454 39,278
Utility and supply lines 5-20 2,053 2,448
Other property 3-50 2,010 1,940
Construction in progress — 4,355 4,406
Total property $ 50,802 $ 55,230
In millions 2015 2014 2013
Depreciation expense $ 1,908 $ 2,136 $ 2,051
Manufacturing maintenance and repair costs $ 1,991 $ 2,117 $ 2,325
Capitalized interest $ 218 $ 125 $ 78
Total property declined $4.4 billion from 2014 primarily due to divestitures, including the split-off of the chlorine value chain
and divestiture of ANGUS Chemical Company. See Notes 5 and 6 for further information on these transactions.