Segmented information

12 Months Ended

Dec. 31, 2018

Disclosure Of Operating Segments [Abstract]

28. Segmented information

As a result of a change to the way its global marketing activities are organized, during 2018, Cameco discontinued the reporting of NUKEM as a reportable segment. The consolidation of Canadian and international marketing activities in Saskatoon has resulted in NUKEM’s activities no longer meeting the quantitative thresholds for separate disclosure. Its results are now included in the “other” column and comparative information has been adjusted.

Cameco now has two reportable segments: uranium and fuel services. Cameco's reportable segments are strategic business units with different products, processes and marketing strategies. 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.

Cost of sales in the uranium segment includes care and maintenance costs for our operations that currently have production suspensions. Cameco expensed $212,511,000 (2017 - $38,311,000) of care and maintenance costs during the year, including $32,111,000 (2017 - $1,200,000) of severance costs. This had a negative impact on gross profit in the uranium segment.

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 - 2018

For the year ended December 31, 2018


			Uranium		Fuel services		Other		Total


Revenue		$	1,684,056	$	313,989	$	93,616	$	2,091,661

Expenses
	Cost of products and services sold		1,138,940		219,240		109,760		1,467,940
	Depreciation and amortization		277,171		35,977		14,825		327,973

Cost of sales			1,416,111		255,217		124,585		1,795,913


Gross profit (loss)			267,945		58,772		(30,969)		295,748

	Administration		-		-		141,552		141,552
	Exploration		20,283		-		-		20,283
	Research and development		-		-		1,757		1,757
	Other operating expense		59,616		-		-		59,616
	Loss on disposal of assets		1,008		1,264		31		2,303
	Finance costs		-		-		111,779		111,779
	Loss on derivatives		-		-		81,081		81,081
	Finance income		-		-		(22,071)		(22,071)
	Share of earnings from equity-accounted investee		(32,321)		-		-		(32,321)
	Other income		(81,955)		-		(26,205)		(108,160)

Earnings (loss) before income taxes			301,314		57,508		(318,893)		39,929
	Income tax recovery								(126,306)

Net earnings									166,235


Capital expenditures for the year		$	44,114	$	11,226	$	22	$	55,362

For the year ended December 31, 2017


			Uranium		Fuel services		Other		Total


Revenue		$	1,574,068	$	312,888	$	269,896	$	2,156,852

Expenses
	Cost of products and services sold		910,685		212,035		267,513		1,390,233
	Depreciation and amortization		267,931		37,093		25,321		330,345

Cost of sales			1,178,616		249,128		292,834		1,720,578


Gross profit (loss)			395,452		63,760		(22,938)		436,274

	Administration		-		-		163,095		163,095
	Impairment charges		246,931		-		111,399		358,330
	Exploration		29,933		-		-		29,933
	Research and development		-		-		5,660		5,660
	Other operating expense		43		-		-		43
	Loss on disposal of assets		5,901		247		799		6,947
	Finance costs		-		-		110,608		110,608
	Gain on derivatives		-		-		(56,250)		(56,250)
	Finance income		-		-		(5,265)		(5,265)
	Other expense		7,193		-		23,217		30,410

Earnings (loss) before income taxes			105,451		63,513		(376,201)		(207,237)
	Income tax recovery								(2,519)

Net loss									(204,718)


Capital expenditures for the year		$	132,073	$	11,237	$	23	$	143,333

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:


		2018		2017


United States	$	1,660,727	$	1,692,936
Canada		424,079		316,611
Germany		2,817		147,305
Switzerland		4,038		-

	$	2,091,661	$	2,156,852

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


		2018		2017


Canada	$	3,401,828	$	3,417,254
Australia		414,084		422,400
United States		131,526		138,455
Kazakhstan		49		283,562
Germany		41		233

	$	3,947,528	$	4,261,904