Inventories
Inventories (principally using the LIFO method) are comprised of the following:
|
| | | | | | | | | | | | |
| | December 31, |
(Millions of dollars) | | 2013 | | 2012 | | 2011 |
Raw materials | | $ | 2,966 |
| | $ | 3,573 |
| | $ | 3,766 |
|
Work-in-process | | 2,589 |
| | 2,920 |
| | 2,959 |
|
Finished goods | | 6,785 |
| | 8,767 |
| | 7,562 |
|
Supplies | | 285 |
| | 287 |
| | 257 |
|
Total inventories | | $ | 12,625 |
| | $ | 15,547 |
| | $ | 14,544 |
|
| | | | | | |
We had long-term material purchase obligations of approximately $1,568 million at December 31, 2013.
During 2013 inventory quantities were reduced. This reduction resulted in a liquidation of LIFO inventory layers carried at lower costs prevailing in prior years as compared with current costs. In 2013, the effect of this reduction of inventory decreased Cost of goods sold by approximately $115 million and increased Profit by approximately $81 million or $0.12 per share.
