For the years ended December 31, 2007 and 2006
($Cdn thousands except per share amounts and as noted)
Cameco has four reportable segments: uranium, fuel services, electricity and gold. 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 gold segment involves the exploration for, mining, milling and sale of gold.
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.
2007 |
||||||||||||
| (Millions) | Uranium | Fuel Services | Electricity | Gold | Inter-Segment | Total | ||||||
| Revenue | $ | 1,269.4 | $ | 238.6 | $ | 417.8 | $ | 404.9 | $ | (21.0) | $ | 2,309.7 |
| Expenses | ||||||||||||
Products and services sold |
516.3 | 237.8 | 233.0 | 246.0 | (21.4) | 1,211.7 | ||||||
Depreciation, depletion and reclamation |
104.7 | 24.1 | 45.8 | 50.9 | – | 225.5 | ||||||
Exploration |
46.0 | – | – | 20.8 | – | 66.8 | ||||||
Research and development |
0.2 | 3.4 | – | – | – | 3.6 | ||||||
Other |
6.4 | – | – | 3.2 | – | 9.6 | ||||||
Cigar Lake remediation |
29.4 | – | – | – | – | 29.4 | ||||||
Restructuring costs [note 24] |
– | – | – | 113.0 | – | 113.0 | ||||||
Loss (gain) on sale of assets |
(5.8) | – | 1.8 | – | – | (4.0) | ||||||
Non-segmented expenses |
188.1 | |||||||||||
| Earnings (loss) before income taxes and minority interest | 572.2 | (26.7) | 137.2 | (29.0) | 0 .4 | 466.0 | ||||||
Income tax expense |
29.5 | |||||||||||
Minority interest |
20.4 | |||||||||||
| Net earnings | $ | 416.1 | ||||||||||
| Assets | $ | 3,383.8 | $ | 272.2 | $ | 821.3 | $ | 638.6 | $ | – | $ | 5,115.9 |
| Intangibles | $ | – | $ | 108.7 | $ | – | $ | – | $ | – | $ | 108.7 |
| Goodwill | $ | – | $ | – | $ | – | $ | 146.8 | $ | – | $ | 146.8 |
| Capital expenditures for the year | $ | 304.9 | $ | 26.3 | $ | 30.9 | $ | 132.4 | $ | – | $ | 494.5 |
2006 |
||||||||||||
| (Millions) | Uranium | Fuel Services | Electricity | Gold | Inter-Segment | Total | ||||||
| Revenue | $ | 803.3 | $ | 224.1 | $ | 407.6 | $ | 414.1 | $ | (17.4) | $ | 1,831.7 |
| Expenses | ||||||||||||
Products and services sold |
472.1 | 180.2 | 221.0 | 268.4 | (13.9) | 1,127.8 | ||||||
Depreciation, depletion and reclamation |
94.2 | 19.1 | 43.5 | 44.4 | (1.5) | 199.7 | ||||||
Exploration |
31.7 | – | – | 26.5 | – | 58.2 | ||||||
Research and development |
– | 2.7 | – | – | – | 2.7 | ||||||
Other |
4.2 | – | – | (15.4) | – | (11.2) | ||||||
Cigar Lake remediation |
20.6 | – | – | – | – | 20.6 | ||||||
Loss (gain) on sale of assets |
(0.4) | 0.5 | – | (1.3) | – | (1.2) | ||||||
Non-segmented expenses |
89.6 | |||||||||||
| Earnings (loss) before income taxes and minority interest | 180.9 | 21.6 | 143.1 | 91.5 | (2.0) | 345.5 | ||||||
Income tax recovery |
(68.8) | |||||||||||
Minority interest |
38.6 | |||||||||||
| Net earnings | $ | 375.7 | ||||||||||
| Assets | $ | 3,100.6 | $ | 252.5 | $ | 758.6 | $ | 734.6 | $ | – | $ | 4,846.3 |
| Intangibles | $ | – | $ | 114.0 | $ | – | $ | – | $ – | $ | 114.0 | |
| Goodwill | $ | – | $ | – | $ | – | $ | 180.1 | $ | – | $ | 180.1 |
| Capital expenditures for the year | $ | 287.8 | $ | 17.9 | $ | 33.2 | $ | 120.7 | $ | – | $ | 459.6 |
| (Millions) | 2007 | 2006 | ||
| Revenue from products and services | ||||
| Canada – domestic | $ | 610.7 | $ | 525.2 |
– export |
258.8 | 271.0 | ||
| United States | 1,035.3 | 621.3 | ||
| Kyrgyzstan | 225.0 | 223.1 | ||
| Mongolia | 179.9 | 191.1 | ||
| $ | 2,309.7 | $ | 1,831.7 | |
| Assets | ||||
| Canada | $ | 3,894.0 | $ | 3,560.7 |
| United States | 242.5 | 323.4 | ||
| Kyrgyzstan | 577.7 | 576.9 | ||
| Mongolia | 247.6 | 305.5 | ||
| Europe | 275.8 | 286.2 | ||
| Kazakhstan | 133.8 | 87.7 | ||
| $ | 5,371.4 | $ | 5,140.4 | |
Cameco relies on a small number of customers to purchase a significant portion of its uranium concentrates and uranium conversion services. During 2007, revenues from one customer of Cameco's uranium and fuel services segments represented approximately $179,175,000 (2006 – $64,270,000), approximately 12% (2006 – 6%) 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 schedules.
During 2007, electricity revenues from one customer of BPLP represented approximately 6% of BPLP's total revenues. In 2006, electricity revenues from BPLP's two largest customers represented approximately 15% and 12% of BPLP's total revenues.