15. INVENTORIES

Most inventories owned by Deere & Company and its U.S. equipment subsidiaries are valued at cost, on the “last-in, first-out” (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the “first-in, first-out” (FIFO) basis, or market. The value of gross inventories on the LIFO basis represented 66 percent and 65 percent of worldwide gross inventories at FIFO value at October 31, 2015 and 2014, respectively. The pretax favorable income effects from the liquidation of LIFO inventory during 2015 and 2014 were approximately $22 million and $13 million, respectively. If all inventories had been valued on a FIFO basis, estimated inventories by major classification at October 31 in millions of dollars would have been as follows:


	2015		2014

Raw materials and supplies	$	1,559	$	1,724
Work-in-process		450		654
Finished goods and parts		3,234		3,360
Total FIFO value		5,243		5,738
Less adjustment to LIFO value		1,426		1,528
Inventories	$	3,817	$	4,210