Annual report pursuant to Section 13 and 15(d)

INVENTORIES

v2.4.0.6
INVENTORIES
 12 Months Ended
Dec. 31, 2012
Inventory Disclosure [Abstract]  
Inventories
NOTE 4 - INVENTORIES
The following table presents the detail of our Inventories in the Statements of Consolidated Financial Position as of December 31, 2012 and 2011:

(In Millions)

December 31, 2012
 
December 31, 2011
Segment
Finished Goods
 
Work-in Process
 
Total Inventory
 
Finished Goods
 
Work-in
Process
 
Total
Inventory
U.S. Iron Ore
$
147.2

 
$
22.9

 
$
170.1

 
$
100.2

 
$
8.5

 
$
108.7

Eastern Canadian Iron Ore
62.6

 
44.2

 
106.8

 
96.2

 
43.0

 
139.2

Asia Pacific Iron Ore
36.7

 
37.2

 
73.9

 
57.2

 
21.6

 
78.8

North American Coal
36.7

 
49.0

 
85.7

 
19.7

 
110.5

 
130.2

Total
$
283.2

 
$
153.3

 
$
436.5

 
$
273.3

 
$
183.6

 
$
456.9


U.S. Iron Ore
The excess of current cost over LIFO cost of iron ore inventories was $122.2 million and $117.1 million at December 31, 2012 and 2011, respectively. As of December 31, 2012, the product inventory balance for U.S. Iron Ore increased, resulting in creation of a LIFO layer in 2012. The effect of the inventory build was an increase in Inventories of $47.5 million in the Statements of Consolidated Financial Position for the year ended December 31, 2012. As of December 31, 2011, the product inventory balance for U.S. Iron Ore declined, resulting in liquidation of LIFO layers in 2011. The effect of the inventory reduction was a decrease in Cost of goods sold and operating expenses of $15.2 million in the Statements of Consolidated Operations for the year ended December 31, 2011.
Eastern Canadian Iron Ore
The excess of current cost over LIFO cost of iron ore inventories was $27.7 million and $21.9 million at December 31, 2012 and 2011, respectively. As of December 31, 2012, the iron ore pellet inventory balance for Eastern Canadian Iron Ore declined, resulting in liquidation of LIFO layers in 2012. The effect of the inventory reduction was a decrease in Cost of goods sold and operating expenses of $7.0 million in the Statements of Consolidated Operations. As of December 31, 2011, the product inventory balance for Eastern Canadian Iron Ore increased to $47.1 million, resulting in an additional LIFO layer being added during the year.
North American Coal
We recorded lower-of-cost-or-market inventory charges of $24.4 million, $6.6 million and $26.1 million in Cost of goods sold and operating expenses in the Statements of Consolidated Operations for the years ended December 31, 2012, 2011 and 2010, respectively. These charges were a result of market declines and operational and geological issues.