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Notes

  1. Cameco Corporation
  2. Significant accounting policies
  3. Accounting standards
  4. Determination of fair values
  5. Use of estimates and judgments
  6. Acquisitions
  7. Accounts receivable
  8. Inventories
  9. Property, plant and equipment
  10. Goodwill and intangible assets
  11. Long-term receivables, investments and other
  12. Equity-accounted investees
  13. Accounts payable and accrued liabilities
  14. Short-term debt
  15. Long-term debt
  16. Other liabilities
  17. Provisions
  1. Share capital
  2. Employee benefit expense
  3. Finance costs
  4. Other expense
  5. Income taxes
  6. Per share amounts
  7. Statements of cash flows
  8. Share-based compensation plans
  9. Pension and other post-retirement benefits
  10. Financial instruments and related risk management
  11. Capital management
  12. Segmented information
  13. Group entities
  14. Joint operations
  15. Related parties
  16. Subsequent event

29. Segmented information

Cameco has four reportable segments: uranium, fuel services, electricity and NUKEM. 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. The NUKEM segment acts as a market intermediary between uranium producers and nuclear-electric utilities.

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.

  • A. Business segments

For the year ended December 31, 2013
  Uranium Fuel services NUKEM  (i) 
Electricity 		 (i) 
Adjustments 		 Other  Total 
Revenue $1,632,508 $319,157 $464,592  $432,857  $(432,857) $22,466  $2,438,723 
Expenses              
Cost of products and services sold 869,137 240,746 419,771  245,374  (245,374) 19,584  1,549,238 
Depreciation and amortization 212,881 26,241 25,459  70,721  (70,721) 18,175  282,756 
Cost of sales 1,082,018 266,987 445,230  316,095  (316,095) 37,759  1,831,994 
Gross profit (loss) 550,490 52,170 19,362  116,762  (116,762) (15,293) 606,729 
Administration – – 15,240  –  –  169,736  184,976 
Impairment charge 70,159 – –  –  –  –  70,159 
Exploration 72,833 – –  –  –  –  72,833 
Research and development – – –  –  –  7,302  7,302 
Loss on sale of assets 6,766 – –  –  –  –  6,766 
Finance costs – – 7,936  8,532  (8,532) 54,185  62,121 
Losses (gains) on derivatives – – (10,215) –  –  72,185  61,970 
Finance income – – (69) (5,941) 5,941  (6,898) (6,967)
Share of earnings from BPLP – – –  –  (109,553) –  (109,553)
Share of loss (earnings) from equity-accounted investees 1,033 13,074 –  –  –  (3,240) 10,867 
Other expense 16,587 – –  4,618  (4,618) 1,739  18,326 
Earnings (loss) before income taxes 383,112 39,096 6,470  109,553  –  (310,302) 227,929 
Income tax recovery             (89,758)
Net earnings             $317,687 
Capital expenditures for the year $635,152 $10,499 $133,924  $ –  $ –  $ –  $779,575 
For the year ended December 31, 2012 (revised – note 3)
  Uranium  Fuel services (i) 
Electricity 		 (i) 
Adjustments 		 Other  Total 
  1. (i) Consistent with the presentation of financial information for internal management purposes, Cameco’s pro-rata share of BPLP’s financial results have been presented as a separate segment. In accordance with IFRS, this investment is accounted for by the equity method of accounting in these consolidated financial statements and the associated revenues and expenses are eliminated in the “Adjustments” column.
Revenue $1,571,105  $291,042 $470,018  $(470,018) $28,513  $1,890,660 
Expenses            
Cost of products and services sold 883,741  223,022 228,847  (228,847) 26,500  1,133,263 
Depreciation and amortization 172,914  26,902 69,678  (69,678) 17,565  217,381 
Cost of sales 1,056,655  249,924 298,525  (298,525) 44,065  1,350,644 
Gross profit (loss) 514,450  41,118 171,493  (171,493) (15,552) 540,016 
Administration –  – –  –  180,900  180,900 
Impairment charge 168,000  – –  –  –  168,000 
Exploration 97,260  – –  –  –  97,260 
Research and development –  – –  –  9,301  9,301 
Gain on sale of assets (1,660) – –  –  –  (1,660)
Finance costs –  – 14,788  (14,788) 67,654  67,654 
Gains on derivatives –  – –  –  (41,416) (41,416)
Finance income –  – (6,446) 6,446 (13,934) (13,934)
Share of earnings from BPLP –  – –  (157,846) –  (157,846)
Share of loss (earnings) from equity-accounted investees 3,230  3,054 –  –  (388) 5,896 
Other expense (income) 35,746  – 5,305  (5,305) (11,000) 24,746 
Earnings (loss) before income taxes 211,874  38,064 157,846  –  (206,669) 201,115 
Income tax recovery           (50,641)
Net earnings           $251,756 
Capital expenditures for the year $1,232,654  $15,284 $ –  $ –  $ –  $1,274,938 

  • 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:
  2013 (revised – note 3)
2012
Canada $191,398 $270,834
Germany 232,296 – 
United States 2,015,029 1,619,826
  $2,438,723 $1,890,660

The Company’s non-current assets, excluding deferred tax assets and financial instruments, by geographic location are as follows:

  2013 (revised – note 3)
2012
Canada $3,868,871 $3,658,615
United States 371,705 336,534
Germany 105,293 – 
Australia 645,952 702,585
Other 243,203 212,517
  $5,235,024 $4,910,251