Annual report pursuant to Section 13 and 15(d)

INVENTORIES

v3.8.0.1
INVENTORIES
 12 Months Ended
Dec. 31, 2017
Inventory Disclosure [Abstract]  
Inventories
NOTE 3 - INVENTORIES
The following table presents the detail of our Inventories in the Statements of Consolidated Financial Position as of December 31, 2017 and 2016:
 
(In Millions)
 
December 31, 2017
 
December 31, 2016
Segment
Finished Goods
 
Work-in Process
 
Total Inventory
 
Finished Goods
 
Work-in
Process
 
Total
Inventory
U.S. Iron Ore
$
127.1

 
$
11.3

 
$
138.4

 
$
124.4

 
$
12.6

 
$
137.0

Asia Pacific Iron Ore
33.3

 
11.7

 
45.0

 
23.6

 
17.8

 
41.4

Total
$
160.4

 
$
23.0

 
$
183.4

 
$
148.0

 
$
30.4

 
$
178.4


U.S. Iron Ore
The excess of current cost over LIFO cost of iron ore inventories was $96.2 million and $78.5 million at December 31, 2017 and 2016, respectively. As of December 31, 2017, the product inventory balance for U.S. Iron Ore increased, resulting in a LIFO increment in 2017. The effect of the inventory build was an increase in Inventories of $6.2 million in the Statements of Consolidated Financial Position for the year ended December 31, 2017. As of December 31, 2016, the product inventory balance for U.S. Iron Ore declined, resulting in the liquidation of a LIFO layer in 2016. The effect of the inventory reduction was an increase in Cost of goods sold and operating expenses of $8.8 million in the Statements of Consolidated Financial Position for the year ended December 31, 2016.
Asia Pacific Iron Ore
We recorded a lower of cost or net realizable value inventory charge of $1.8 million related to work-in process inventory in Cost of goods sold and operating expenses in the Statements of Consolidated Operations for the year ended December 31, 2017. The charge was predominantly a result of the decline in our realized revenue rate as well as the additional production and transportation costs required to be incurred in order for our work-in process inventory to be ready for sale. There were no LCM inventory adjustments recorded for the year ended December 31, 2016.