32. Segmented information
Cameco has three reportable segments: uranium, fuel services and electricity. The uranium segment involves the exploration for, mining, milling, purchase and sale of uranium concentrate. The fuel services segment involves the refining, conversion and fabrication of uranium concentrate and the purchase and sale of conversion services. The electricity segment involves the generation and sale of electricity.
Cameco's reportable segments are strategic business units with different products, processes and marketing strategies.
Accounting policies used in each segment are consistent with the policies outlined in the summary of significant accounting policies. Segment revenues, expenses and results include transactions between segments incurred in the ordinary course of business. These transactions are priced on an arm’s length basis and are eliminated on consolidation.
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A. Business segments
| Uranium | Fuel Services | Electricity | Other | Total | ||
|---|---|---|---|---|---|---|
| Revenue | $1,546,200 | $276,740 | $470,018 | $28,513 | $2,321,471 | |
| Expenses | ||||||
| Cost of products and services sold | 871,282 | 209,697 | 197,299 | 26,500 | 1,304,778 | |
| Depreciation and amortization | 170,864 | 25,166 | 79,834 | 17,565 | 293,429 | |
| Cost of sales | 1,042,146 | 234,863 | 277,133 | 44,065 | 1,598,207 | |
| Gross profit (loss) | 504,054 | 41,877 | 192,885 | (15,552) | 723,264 | |
| Impairment charge on non-producing property | 168,000 | — | — | — | 168,000 | |
| Exploration | 97,169 | — | — | — | 97,169 | |
| Gain on sale of assets | (1,660) | — | — | — | (1,660) | |
| Share of loss from equity-accounted investees | 2,951 | 3,054 | — | — | 6,005 | |
| Other expense | 24,746 | — | — | — | 24,746 | |
| Non-segmented expenses | 210,797 | |||||
| Earnings (loss) before income taxes | 212,848 | 38,823 | 192,885 | (15,552) | 218,207 | |
| Income tax recovery | (46,376) | |||||
| Net earnings | $264,583 | |||||
| Assets | $6,667,588 | $733,346 | $814,086 | $ | - | $8,215,020 |
| Capital expenditures for the year | $1,232,526 | $15,284 | $62,246 | $ | - | $1,310,056 |
| Uranium | Fuel Services | Electricity | Other | Total | ||
|---|---|---|---|---|---|---|
| Revenue | $1,615,697 | $305,280 | $427,927 | $35,500 | $2,384,404 | |
| Expenses | ||||||
| Cost of products and services sold | 824,324 | 224,548 | 247,665 | 36,912 | 1,333,449 | |
| Depreciation and amortization | 159,168 | 26,579 | 71,247 | 17,669 | 274,663 | |
| Cost of sales | 983,492 | 251,127 | 318,912 | 54,581 | 1,608,112 | |
| Gross profit (loss) | 632,205 | 54,153 | 109,015 | (19,081) | 776,292 | |
| Exploration | 84,875 | — | — | — | 84,875 | |
| Loss on sale of assets | 7,602 | — | — | — | 7,602 | |
| Share of loss from equity-accounted investees | 4,533 | 2,700 | — | — | 7,233 | |
| Other income | 1,826 | (2,382) | — | — | (556) | |
| Non-segmented expenses | 215,539 | |||||
| Earnings (loss) before income taxes | 533,369 | 53,835 | 109,015 | (19,081) | 461,599 | |
| Income tax expense | 11,755 | |||||
| Net earnings | $449,844 | |||||
| Assets | $6,046,000 | $773,277 | $797,073 | $ | - | $7,616,350 |
| Capital expenditures for the year | $552,557 | $17,918 | $76,662 | $ | - | $647,137 |
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B. Geographic segments
Revenue is attributed to the geographic location based on the location of the entity providing the services. The Company’s revenue from external customers is as follows:
| 2012 | 2011 | |
|---|---|---|
| Canada | $701,645 | $719,454 |
| United States | 1,619,826 | 1,664,950 |
| $2,321,471 | $2,384,404 |
The Company’s non-current assets, excluding deferred tax assets and financial instruments, by geographic location are as follows:
| 2012 | 2011 | |
|---|---|---|
| Canada | $4,091,790 | $3,516,368 |
| United States | 336,534 | 305,976 |
| Australia | 702,585 | 429,823 |
| Other | 212,517 | 196,279 |
| $5,343,426 | $4,448,446 |