Segmented information

12 Months Ended

Dec. 31, 2020

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 $195,972,000 (2019 - $153,924,000) of care and maintenance costs during the year. Included in this amount in 2020 is $45,988,000 relating to care and maintenance costs for operations suspended as a result of COVID-19. Also included in cost of sales, because of the Cigar Lake production suspension, is the impact of increased purchasing activity at a higher cost than produced pounds. This had a negative impact on gross profit in the uranium segment.

Cost of sales in the fuel services segment also includes care and maintenance costs for our operations that have had production suspensions as a result of COVID-19. Cameco expensed $8,992,000 in 2020 due to the suspension.

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 - 2020

For the year ended December 31, 2020


			Uranium		Fuel services		Other		Total


Revenue		$	1,411,770	$	377,296	$	11,007	$	1,800,073

Expenses
	Cost of products and services sold		1,244,049		237,656		3,257		1,484,962
	Depreciation and amortization		154,560		43,190		10,912		208,662

Cost of sales			1,398,609		280,846		14,169		1,693,624


Gross profit (loss)			13,161		96,450		(3,162)		106,449

	Administration		-		-		145,344		145,344
	Exploration		10,873		-		-		10,873
	Research and development		-		-		3,965		3,965
	Other operating expense		23,921		-		-		23,921
	Loss on disposal of assets		667		405		-		1,072
	Finance costs		-		-		96,133		96,133
	Gain on derivatives		-		-		(36,577)		(36,577)
	Finance income		-		-		(10,835)		(10,835)
	Share of earnings from equity-accounted investee		(36,476)		-		-		(36,476)
	Other income		(202)		-		(51,238)		(51,440)

Earnings (loss) before income taxes			14,378		96,045		(149,954)		(39,531)
	Income tax expense								13,666

Net loss									(53,197)


Capital expenditures for the year		$	46,697	$	30,760	$	5	$	77,462

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

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:


		2020		2019


United States	$	1,177,756	$	1,295,195
Canada		622,317		567,730

	$	1,800,073	$	1,862,925

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


		2020		2019


Canada	$	3,260,144	$	3,267,376
Australia		421,836		392,500
United States		145,328		121,102
Kazakhstan		55		80
Germany		16		24

	$	3,827,379	$	3,781,082

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 2020, revenues from two customers of Cameco’s uranium and fuel services segments represented approximately $457,560,000 (2019 - $422,740,000), approximately 25% (2019 - 24%) 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.