Note 4. Inventories

Inventories are stated at lower of cost or market. Cost is determined using a weighted average cost method for scrap, and on a first-in, first-out, basis for other inventory. Inventory consisted of the following (in thousands):

	September 30,		December 31,
	2015		2014
Raw materials	$	559,996	$	764,883
Supplies	385,347		374,599
Work in progress	114,718		128,882
Finished goods	261,336		350,055

Total inventories	$	1,321,397	$	1,618,419

During the second quarter 2015, the company recorded an inventory lower-of-cost or market charge of $21.0 million (inclusive of noncontrolling interests of $3.6 million), related to the idling of its Minnesota ironmaking operations. The expense is recorded within cost of goods sold during the nine-months ended September 30, 2015.