Quarterly report pursuant to Section 13 or 15(d)

INVENTORIES

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INVENTORIES
 6 Months Ended
Jun. 30, 2014
Inventory Disclosure [Abstract]  
Inventories
NOTE 4 - INVENTORIES
The following table presents the detail of our Inventories in the Statements of Unaudited Condensed Consolidated Financial Position as of June 30, 2014 and December 31, 2013:
 
(In Millions)
 
June 30, 2014
 
December 31, 2013
Segment
Finished Goods
 
Work-in Process
 
Total Inventory
 
Finished Goods
 
Work-in
Process
 
Total
Inventory
U.S. Iron Ore
$
361.5

 
$
24.4

 
$
385.9

 
$
92.1

 
$
13.0

 
$
105.1

Eastern Canadian Iron Ore
34.4

 
51.9

 
86.3

 
65.3

 
48.1

 
113.4

Asia Pacific Iron Ore
39.6

 
75.9

 
115.5

 
39.7

 
50.6

 
90.3

North American Coal
45.0

 
16.1

 
61.1

 
59.4

 
23.2

 
82.6

Total
$
480.5

 
$
168.3

 
$
648.8

 
$
256.5

 
$
134.9

 
$
391.4


We recorded lower-of-cost-or-market inventory charges of $15.0 million and $37.1 million in Cost of goods sold and operating expenses in the Statements of Unaudited Condensed Consolidated Operations for the three and six months ended June 30, 2014, respectively, for our North American Coal operations. The charges at North American Coal were a result of market pricing declines during the periods. For the three and six months ended June 30, 2013, we recorded lower-of-cost-or-market inventory charges of $0.7 million and $2.7 million, respectively, for our North American Coal operations. These charges were a result of market declines and costs associated with operational and geological issues.
We recorded lower-of-cost-or-market inventory charges of $2.6 million and $16.0 million in Cost of goods sold and operating expenses in the Statements of Unaudited Condensed Consolidated Operations for the three and six months ended June 30, 2014, respectively, for our Eastern Canadian Iron Ore operations. The $2.6 million charge in the second quarter of 2014 relates to an adjustment of the remaining Wabush mine inventory to estimated net realizable value. The charges in the first quarter of 2014 at Eastern Canadian Iron Ore were a result of declines in Platts pricing and higher inventory costs at both Bloom Lake and Wabush.  Bloom Lake’s higher inventory costs were driven by the timing of maintenance activities and mine development, whereas Wabush’s higher costs were driven by unfavorable production performance up to the idling of the Scully mine operation.
We recorded a lower-of-cost-or-market inventory charge during the second quarter of 2013 of $11.1 million relating to Wabush pellets that were contractually committed tons. We additionally recorded a lower-of-cost-or-market inventory charge during the second quarter of 2013 of $4.7 million relating to the Wabush sinter feed caused by higher costs as a result of the transition of product being produced and the forest fire that temporarily idled the mine in June. An unsaleable inventory impairment charge was recorded in the second quarter of 2013 relating to Wabush pellets of $10.6 million as a result of our idling of the Wabush pellet plant during the second quarter of 2013. All of these charges recorded during the second quarter were recorded in Cost of goods sold and operating expenses in the Statements of Unaudited Condensed Consolidated Operations for the three and six months ended June 30, 2013 for our Eastern Canadian Iron Ore operations.