Inventories
Inventories are stated at the lower of cost or market. In the United States, we manufacture certain finished products and parts inventories for drill bits, completion products, bulk materials, and other tools that are recorded using the last-in, first-out method and totaled $157 million at December 31, 2013 and $139 million at December 31, 2012. If the average cost method had been used, total inventories would have been $35 million higher than reported at December 31, 2013 and $41 million higher than reported at December 31, 2012. The cost of the remaining inventory was recorded on the average cost method. Inventories consisted of the following:
|
| | | | | | |
| December 31 |
Millions of dollars | 2013 | 2012 |
Finished products and parts | $ | 2,445 |
| $ | 2,264 |
|
Raw materials and supplies | 720 |
| 793 |
|
Work in process | 140 |
| 129 |
|
Total | $ | 3,305 |
| $ | 3,186 |
|
Finished products and parts are reported net of obsolescence reserves of $130 million at December 31, 2013 and $114 million at December 31, 2012.
