Segmented information

12 Months Ended

Dec. 31, 2019

Disclosure Of Operating Segments [Abstract]

28. Segmented information

Cameco 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 $153,924,000 (2018 - $212,511,000) of care and maintenance costs during the year, including $260,000 (2018 - $32,111,000) 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 - 2019

For the year ended December 31, 2019


			Uranium		Fuel services		Other		Total


Revenue		$	1,413,809	$	370,277	$	78,839	$	1,862,925

Expenses
	Cost of products and services sold		1,041,922		234,423		69,206		1,345,551
	Depreciation and amortization		218,832		45,856		11,061		275,749

Cost of sales			1,260,754		280,279		80,267		1,621,300


Gross profit (loss)			153,055		89,998		(1,428)		241,625

	Administration		-		-		124,869		124,869
	Exploration		13,686		-		-		13,686
	Research and development		-		-		6,058		6,058
	Other operating expense		2,732		-		-		2,732
	Loss on disposal of assets		1,869		-		-		1,869
	Finance costs		-		-		98,622		98,622
	Gain on derivatives		-		-		(32,269)		(32,269)
	Finance income		-		-		(29,760)		(29,760)
	Share of earnings from equity-accounted investee		(45,360)		-		-		(45,360)
	Other expense (income)		(52,801)		-		18,961		(33,840)

Earnings (loss) before income taxes			232,929		89,998		(187,909)		135,018
	Income tax expense								61,077

Net earnings									73,941


Capital expenditures for the year		$	48,092	$	27,117	$	2	$	75,211

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

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:


		2019		2018


United States	$	1,295,195	$	1,660,727
Canada		567,730		424,079
Switzerland		-		4,038
Germany		-		2,817

	$	1,862,925	$	2,091,661

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


		2019		2018


Canada	$	3,267,376	$	3,401,828
Australia		392,500		414,084
United States		121,102		131,526
Kazakhstan		80		49
Germany		24		41

	$	3,781,082	$	3,947,528

Major customers

Cameco relies on a small number of customers to purchase a significant portion of its uranium concentrates and uranium conversion services. During 2019, revenues from two customers of Cameco’s uranium and fuel services segments represented approximately $422,740,000 (2018 - $204,594,000), approximately 24% (2018 - 10%) 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.