Annual report pursuant to Section 13 and 15(d)

INVENTORIES

v2.4.0.8
INVENTORIES
 12 Months Ended
Dec. 31, 2013
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, 2013 and 2012:
 
(In Millions)
 
December 31, 2013
 
December 31, 2012
Segment
Finished Goods
 
Work-in Process
 
Total Inventory
 
Finished Goods
 
Work-in
Process
 
Total
Inventory
U.S. Iron Ore
$
92.1

 
$
13.0

 
$
105.1

 
$
147.2

 
$
22.9

 
$
170.1

Eastern Canadian Iron Ore
65.3

 
48.1

 
113.4

 
62.6

 
44.2

 
106.8

Asia Pacific Iron Ore
39.7

 
50.6

 
90.3

 
36.7

 
37.2

 
73.9

North American Coal
59.4

 
23.2

 
82.6

 
36.7

 
49.0

 
85.7

Total
$
256.5

 
$
134.9

 
$
391.4

 
$
283.2

 
$
153.3

 
$
436.5


U.S. Iron Ore
The excess of current cost over LIFO cost of iron ore inventories was $115.3 million and $122.2 million at December 31, 2013 and 2012, respectively. As of December 31, 2013, the product inventory balance for U.S. Iron Ore declined, resulting in liquidation of a LIFO layer in 2013. The effect of the inventory reduction was a decrease in Cost of goods sold and operating expenses of $7.4 million in the Statements of Consolidated Operations for the year ended December 31, 2013. As of December 31, 2012, the product inventory balance for U.S. Iron Ore increased, resulting in a LIFO increment 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.
Eastern Canadian Iron Ore
Our pellet inventories carried on a LIFO cost were immaterial at December 31, 2013 due to our transition to only producing concentrate inventory, which is carried at weighted-average cost. The excess of current cost over LIFO cost of iron ore inventories was $27.7 million at December 31, 2012. As of December 31, 2012, the product inventory balance for Eastern Canadian Iron Ore pellet inventory declined, resulting in liquidation of LIFO layers during the year. 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.
For the year ended December 31, 2013, the LCM concentrate and pellet inventory charges recorded were $13.2 million and $11.1 million, respectively, which were recorded in Cost of goods sold and operating expenses in the Statements of Consolidated Operations for our Eastern Canadian Iron Ore operations.
Additionally, we recorded unsaleable inventory impairment charges of $10.6 million and $7.9 million, respectively, relating to Wabush pellets and concentrate inventory. Both of these charges were recorded in Cost of goods sold and operating expenses during 2013 and included in the Statements of Consolidated Operations for the year ended December 31, 2013 for our Eastern Canadian Iron Ore operations.
No LCM inventory adjustments were recorded for the year ended December 31, 2012 within the Eastern Canadian Iron Ore operating segment results.
North American Coal
We recorded LCM inventory charges of $11.1 million, $24.4 million and $6.6 million in Cost of goods sold and operating expenses in the Statements of Consolidated Operations for the years ended December 31, 2013, 2012 and 2011, respectively, for our North American Coal operations. These charges were a result of market declines and costs associated with operational and geological issues.