Annual report pursuant to Section 13 and 15(d)

INVENTORIES

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INVENTORIES
 12 Months Ended
Dec. 31, 2019
Inventory Disclosure [Abstract]  
Inventories
NOTE 4 - INVENTORIES
The following table presents the detail of our Inventories in the Statements of Consolidated Financial Position:
 
 
(In Millions)
 
 
December 31,
 
 
2019
 
2018
Product inventories
 
 
 
 
Finished goods
 
$
114.1

 
$
77.8

Work-in-process
 
68.7

 
10.1

Total product inventories
 
182.8

 
87.9

Supplies and other inventories
 
134.6

 
93.2

Inventories
 
$
317.4

 
$
181.1


The excess of current cost over LIFO cost of iron ore inventories was $101.3 million and $95.6 million at December 31, 2019 and 2018, respectively. As of December 31, 2019, the product inventory balance for the Mining and Pelletizing segment increased, resulting in a LIFO increment in 2019. The effect of the inventory build was an increase in Inventories of $34.2 million in the Statements of Consolidated Financial Position for the year ended December 31, 2019. As of December 31, 2018, the product inventory balance for the Mining and Pelletizing segment declined, resulting in the liquidation of a LIFO layer in 2018. The effect of the inventory reduction was a decrease in Cost of goods sold and operating expenses of $0.2 million in the Statements of Consolidated Operations for the year ended December 31, 2018.
The allowance for obsolete and surplus items in supplies and other inventories was $12.7 million and $12.6 million at December 31, 2019 and 2018, respectively.