Notes to Consolidated Financial Statements
For the years ended December 31, 2014 and 2013
12. Equity-accounted investees
i. GE-Hitachi Global Laser Enrichment LLC (GLE)
GLE primarily operates in North Carolina and is testing a third-generation technology that, if successful, will use lasers to commercially enrich uranium. Cameco owns a 24% interest in GLE and accounts for it under the equity method of accounting.
During 2014, a decision was made by the majority partner of GLE to significantly reduce funding of the project. Because the technology is unique to the industry and inherently risky, the significant reduction of funding introduced a further level of risk and jeopardized the viability of the project. As a result, Cameco determined the fair value less costs to sell to be nil and as such recognized an impairment charge of $183,615,000, which represented the full amount of Cameco’s investment. Future contributions to the project are being reflected in net earnings.
The following table summarizes the share of GLE’s earnings that Cameco has recognized:
|Loss from operations and comprehensive loss||$ —||$(55,279)|
|Cameco’s share of loss from operations and comprehensive loss (24%)||$ —||$(13,267)|
Following the impairment of the investment in 2014, Cameco discontinued recognizing its share of losses in GLE. Cameco’s contributions to GLE are recorded in earnings as research and development.
ii. Other associate
Cameco has one other associate. The following table summarizes the carrying amount and share of loss and other comprehensive income of this associate:
|Carrying amount of associates||$2,472||$3,230|
|Share of loss from operations and comprehensive loss||$(758)||$(3,874)|
At December 31, 2015, the quoted value of the Company’s share in this associate that has shares listed on a recognized stock exchange was $7,503,000 (2014 – $14,256,000).