Notes to Consolidated Financial Statements

For the years ended December 31, 2014 and 2013

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

30. Segmented information

Cameco has three reportable segments: uranium, fuel services 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 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, are eliminated on consolidation and are reflected in the “other” column.

  • A. Business segments

For the year ended December 31, 2014
  Uranium Fuel services  NUKEM  Other  Total 
Revenue $1,777,180 $306,235  $349,245  $(35,128) $2,397,532 
Expenses          
Cost of products and services sold 902,813 237,872  319,369  (39,286) 1,420,768 
Depreciation and amortization 272,632 30,038  7,584  28,729  338,983 
Cost of sales 1,175,445 267,910  326,953  (10,557) 1,759,751 
Gross profit (loss) 601,735 38,325  22,292  (24,571) 637,781 
Administration — —  16,591  159,794  176,385 
Impairment charges 143,078 183,615  —  —  326,693 
Exploration 46,565 —  —  —  46,565 
Research and development — —  —  5,044  5,044 
Loss (gain) on disposal of assets 32,959 11,808  (5) —  44,762 
Finance costs — —  3,769  73,353  77,122 
Losses on derivatives — —  1,799  119,361  121,160 
Finance income — —  (14) (7,388) (7,402)
Share of loss from equity-accounted investees 3,874 13,267  —  —  17,141 
Other expense (income) 68,626 18,035  —  —  50,591 
Earnings (loss) before income taxes 443,885 (188,400) 152  (374,735) (119,098)
Income tax recovery         (175,268)
Net earnings from continuing operations         $56,170 
Capital expenditures for the year $466,332 $13,776  $ —  $ —  $480,108 
For the year ended December 31, 2013
  Uranium Fuel services NUKEM  Other  Total 
Revenue $1,632,508 $319,157 $464,592  $22,466  $2,438,723 
Expenses          
Cost of products and services sold 869,137 240,746 419,771  19,584  1,549,238 
Depreciation and amortization 212,881 26,241 25,459  18,175  282,756 
Cost of sales 1,082,018 266,987 445,230  37,759  1,831,994 
Gross profit (loss) 550,490 52,170 19,362  (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 disposal of assets 6,766 — —  —  6,766 
Finance costs — — 7,936  54,185  62,121 
Losses (gains) on derivatives — — (10,215) 72,185  61,970 
Finance income — — (69) (6,898) (6,967)
Share of loss from equity-accounted investees 1,033 13,074 —  —  14,107 
Other expense 16,587 — —  1,739  18,326 
Earnings (loss) before income taxes 383,112 39,096 6,470  (313,542) 115,136 
Income tax recovery         (117,230)
Net earnings from continuing operations         $232,366 
Capital expenditures for the year $635,152 $10,499 $133,924  $ —  $779,575 

  • 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:
  2014 2013
Canada $308,327 $230,505
Germany 174,622 232,296
United States 1,914,583 1,975,922
  $2,397,532 $2,438,723

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

  2014 2013
Canada $4,048,009 $3,868,871
United States 409,495 371,705
Germany 116,106 105,293
Australia 643,986 645,952
Other 274,527 243,203
  $5,492,123 $5,235,024