REYNOLDS AMERICAN INC | 2013 | FY | 3


Note 6 — Inventories

The major components of inventories at December 31 were as follows:

 

     2013      2012  

Leaf tobacco

   $ 1,049       $ 919   

Other raw materials

     66         51   

Work in process

     70         63   

Finished products

     130         125   

Other

     18         18   
  

 

 

    

 

 

 

Total

     1,333         1,176   

Less LIFO allowance

     206         192   
  

 

 

    

 

 

 
   $ 1,127       $ 984   
  

 

 

    

 

 

 

Inventories valued under the LIFO method were $519 million and $443 million at December 31, 2013 and 2012, respectively, net of the LIFO allowance. The LIFO allowance reflects the excess of the current cost of LIFO inventories at December 31, 2013 and 2012, over the amount at which these inventories were carried on the consolidated balance sheets. RAI recorded expense of $14 million and $7 million from LIFO inventory changes during 2013 and 2012, respectively, and income of $12 million from LIFO inventory changes during 2011.


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