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. 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
  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

29. 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 – 2015

For the year ended December 31, 2015
  Uranium Fuel services NUKEM  Other  Total 
Revenue $1,866,198 $318,999 $553,665  $15,516  $2,754,378 
Expenses          
Cost of products and services sold 989,239 226,854 516,880  11,842  1,744,815 
Depreciation and amortization 269,084 30,670 (5,103) 17,867  312,518 
Cost of sales 1,258,323 257,524 511,777  29,709  2,057,333 
Gross profit (loss) 607,875 61,475 41,888  (14,193) 697,045 
Administration — — 18,130  168,680  186,810 
Impairment charges 215,488 — —  —  215,488 
Exploration 40,259 — —  —  40,259 
Research and development — — —  6,587  6,587 
Loss on disposal of assets 1,753 564 9  —  2,326 
Finance costs — — 4,593  99,022  103,615 
Losses (gain) on derivatives — — (587) 281,197  280,610 
Finance income — — (3) (5,414) (5,417)
Share of loss from equity-accounted investees 758 — —  —  758 
Other expense (income) 4,600 — 1,899  (61,222) (54,723)
Earnings (loss) before income taxes 345,017 60,911 17,847  (503,043) (79,268)
Income tax recovery         (142,630)
Net earnings         $63,362 
Capital expenditures for the year $344,610 $13,952 $ —  $ —  $358,562 
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 
Gain (loss) on disposal of assets 32,959  11,608  (5) —  44,762 
Finance costs —  —  4,428  107,425  111,853 
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  (659) (34,072) (85,322)
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 

  • 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:
  2015 2014
United States $2,135,977 $1,914,583
Canada 341,568 308,327
Germany 276,833 174,622
  $2,754,378 $2,397,532

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

  2015 2014
Canada $3,867,740 $4,048,009
Australia 684,261 643,986
United States 429,815 409,495
Other 327,847 274,527
Germany 135,627 116,106
  $5,445,290 $5,492,123

  • C. Major customers

Cameco relies on a small number of customers to purchase a significant portion of its uranium concentrates and uranium conversion services. During 2015, revenues from one customer of Cameco’s uranium, fuel services and NUKEM segments represented approximately $320,312,000 (2014 – $281,485,000), approximately 12% (2014 – 12%) of Cameco’s total revenues from these segments. As customers are relatively few in number, accounts receivable from any individual customer may periodically exceed 10% of accounts receivable depending on delivery schedule.