NOTE 2 - SEGMENT REPORTING
Our Company’s primary operations are organized and managed according to product category and geographic location: U.S. Iron Ore, Eastern Canadian Iron Ore, Asia Pacific Iron Ore, North American Coal, Latin American Iron Ore, Ferroalloys and our Global Exploration Group. The U.S. Iron Ore segment is comprised of our interests in five U.S. mines that provide iron ore to the integrated steel industry. The Eastern Canadian Iron Ore segment is comprised of two Eastern Canadian mines that primarily provide iron ore to the seaborne market for Asian steel producers. The Asia Pacific Iron Ore segment is located in Western Australia and provides iron ore to the seaborne market for Asian steel producers. The North American Coal segment is comprised of our five metallurgical coal mines and one thermal coal mine that provide metallurgical coal primarily to the integrated steel industry and thermal coal primarily to the energy industry. There are no intersegment revenues.
The Latin American Iron Ore operating segment is comprised of our 30 percent Amapá interest in Brazil. The Ferroalloys operating segment is comprised of our interests in chromite deposits held in Northern Ontario, Canada and the Global Exploration Group is focused on early involvement in exploration activities to identify new projects for future development or projects that add significant value to existing operations. The Latin American Iron Ore, Ferroalloys and Global Exploration Group operating segments do not meet reportable segment disclosure requirements and, therefore, are not reported separately.
We evaluate segment performance based on sales margin, defined as revenues less cost of goods sold, and operating expenses identifiable to each segment. This measure of operating performance is an effective measurement as we focus on reducing production costs throughout the Company.
The following table presents a summary of our reportable segments for the three and six months ended JuneÌý30, 2013 and 2012, including a reconciliation of segment sales margin to Income from Continuing Operations Before Income Taxes and Equity Loss from Ventures:
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Ìý |
(In Millions) |
Ìý |
Three Months Ended
June 30, |
Ìý |
Six Months Ended
June 30, |
Ìý |
2013 |
Ìý |
2012 |
Ìý |
2013 |
Ìý |
2012 |
Revenues from product sales and services: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. Iron Ore |
$ |
701.7 |
|
Ìý |
47 |
% |
Ìý |
$ |
705.0 |
|
Ìý |
45 |
% |
Ìý |
$ |
1,111.8 |
|
Ìý |
42 |
% |
Ìý |
$ |
1,146.7 |
|
Ìý |
41 |
% |
Eastern Canadian Iron Ore |
213.9 |
|
Ìý |
14 |
% |
Ìý |
303.9 |
|
Ìý |
19 |
% |
Ìý |
459.2 |
|
Ìý |
17 |
% |
Ìý |
524.6 |
|
Ìý |
19 |
% |
Asia Pacific Iron Ore |
327.0 |
|
Ìý |
22 |
% |
Ìý |
361.3 |
|
Ìý |
23 |
% |
Ìý |
597.8 |
|
Ìý |
23 |
% |
Ìý |
721.1 |
|
Ìý |
26 |
% |
North American Coal |
245.9 |
|
Ìý |
17 |
% |
Ìý |
209.2 |
|
Ìý |
13 |
% |
Ìý |
460.2 |
|
Ìý |
18 |
% |
Ìý |
399.2 |
|
Ìý |
14 |
% |
Other |
— |
|
Ìý |
— |
% |
Ìý |
— |
|
Ìý |
— |
% |
Ìý |
— |
|
Ìý |
— |
% |
Ìý |
0.1 |
|
Ìý |
— |
% |
Total revenues from product sales and services |
$ |
1,488.5 |
|
Ìý |
100 |
% |
Ìý |
$ |
1,579.4 |
|
Ìý |
100 |
% |
Ìý |
$ |
2,629.0 |
|
Ìý |
100 |
% |
Ìý |
$ |
2,791.7 |
|
Ìý |
100 |
% |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Sales margin: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. Iron Ore |
$ |
216.3 |
|
Ìý |
Ìý |
Ìý |
$ |
286.1 |
|
Ìý |
Ìý |
Ìý |
$ |
373.6 |
|
Ìý |
Ìý |
Ìý |
$ |
452.9 |
|
Ìý |
Ìý |
Eastern Canadian Iron Ore |
(49.7 |
) |
Ìý |
Ìý |
Ìý |
11.7 |
|
Ìý |
Ìý |
Ìý |
(30.3 |
) |
Ìý |
Ìý |
Ìý |
(2.6 |
) |
Ìý |
Ìý |
Asia Pacific Iron Ore |
95.0 |
|
Ìý |
Ìý |
Ìý |
146.8 |
|
Ìý |
Ìý |
Ìý |
156.3 |
|
Ìý |
Ìý |
Ìý |
271.9 |
|
Ìý |
Ìý |
North American Coal |
6.6 |
|
Ìý |
Ìý |
Ìý |
(9.6 |
) |
Ìý |
Ìý |
Ìý |
8.4 |
|
Ìý |
Ìý |
Ìý |
5.0 |
|
Ìý |
Ìý |
Other |
— |
|
Ìý |
Ìý |
Ìý |
8.4 |
|
Ìý |
Ìý |
Ìý |
(1.9 |
) |
Ìý |
Ìý |
Ìý |
8.0 |
|
Ìý |
Ìý |
Sales margin |
268.2 |
|
Ìý |
Ìý |
Ìý |
443.4 |
|
Ìý |
Ìý |
Ìý |
506.1 |
|
Ìý |
Ìý |
Ìý |
735.2 |
|
Ìý |
Ìý |
Other operating expense |
(6.2 |
) |
Ìý |
Ìý |
Ìý |
(81.5 |
) |
Ìý |
Ìý |
Ìý |
(75.8 |
) |
Ìý |
Ìý |
Ìý |
(150.3 |
) |
Ìý |
Ìý |
Other income (expense) |
(43.5 |
) |
Ìý |
Ìý |
Ìý |
(47.5 |
) |
Ìý |
Ìý |
Ìý |
(91.5 |
) |
Ìý |
Ìý |
Ìý |
(90.8 |
) |
Ìý |
Ìý |
Income from continuing operations before income taxes and equity loss from ventures |
$ |
218.5 |
|
Ìý |
Ìý |
Ìý |
$ |
314.4 |
|
Ìý |
Ìý |
Ìý |
$ |
338.8 |
|
Ìý |
Ìý |
Ìý |
$ |
494.1 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Depreciation, depletion and amortization: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. Iron Ore |
$ |
28.4 |
|
Ìý |
Ìý |
Ìý |
$ |
23.8 |
|
Ìý |
Ìý |
Ìý |
$ |
55.0 |
|
Ìý |
Ìý |
Ìý |
$ |
47.0 |
|
Ìý |
Ìý |
Eastern Canadian Iron Ore |
42.4 |
|
Ìý |
Ìý |
Ìý |
38.6 |
|
Ìý |
Ìý |
Ìý |
83.5 |
|
Ìý |
Ìý |
Ìý |
76.5 |
|
Ìý |
Ìý |
Asia Pacific Iron Ore |
41.7 |
|
Ìý |
Ìý |
Ìý |
39.8 |
|
Ìý |
Ìý |
Ìý |
78.1 |
|
Ìý |
Ìý |
Ìý |
69.8 |
|
Ìý |
Ìý |
North American Coal |
28.4 |
|
Ìý |
Ìý |
Ìý |
24.3 |
|
Ìý |
Ìý |
Ìý |
60.9 |
|
Ìý |
Ìý |
Ìý |
44.4 |
|
Ìý |
Ìý |
Other |
3.4 |
|
Ìý |
Ìý |
Ìý |
5.6 |
|
Ìý |
Ìý |
Ìý |
7.4 |
|
Ìý |
Ìý |
Ìý |
11.7 |
|
Ìý |
Ìý |
Total depreciation, depletion and amortization |
$ |
144.3 |
|
Ìý |
Ìý |
Ìý |
$ |
132.1 |
|
Ìý |
Ìý |
Ìý |
$ |
284.9 |
|
Ìý |
Ìý |
Ìý |
$ |
249.4 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Capital additions (1): |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. Iron Ore |
$ |
12.2 |
|
Ìý |
Ìý |
Ìý |
$ |
28.1 |
|
Ìý |
Ìý |
Ìý |
$ |
23.9 |
|
Ìý |
Ìý |
Ìý |
$ |
62.9 |
|
Ìý |
Ìý |
Eastern Canadian Iron Ore |
186.8 |
|
Ìý |
Ìý |
Ìý |
177.3 |
|
Ìý |
Ìý |
Ìý |
353.8 |
|
Ìý |
Ìý |
Ìý |
307.9 |
|
Ìý |
Ìý |
Asia Pacific Iron Ore |
2.3 |
|
Ìý |
Ìý |
Ìý |
16.9 |
|
Ìý |
Ìý |
Ìý |
6.6 |
|
Ìý |
Ìý |
Ìý |
126.2 |
|
Ìý |
Ìý |
North American Coal |
15.7 |
|
Ìý |
Ìý |
Ìý |
32.7 |
|
Ìý |
Ìý |
Ìý |
26.8 |
|
Ìý |
Ìý |
Ìý |
71.8 |
|
Ìý |
Ìý |
Other |
1.1 |
|
Ìý |
Ìý |
Ìý |
11.1 |
|
Ìý |
Ìý |
Ìý |
2.7 |
|
Ìý |
Ìý |
Ìý |
50.7 |
|
Ìý |
Ìý |
Total capital additions |
$ |
218.1 |
|
Ìý |
Ìý |
Ìý |
$ |
266.1 |
|
Ìý |
Ìý |
Ìý |
$ |
413.8 |
|
Ìý |
Ìý |
Ìý |
$ |
619.5 |
|
Ìý |
Ìý |
ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý
(1)ÌýÌýÌýÌýIncludes capital lease additions and non-cash accruals. Refer to NOTE 20 - CASH FLOW INFORMATION.
A summary of assets by segment is as follows:
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|
Ìý |
(In Millions) |
Ìý |
JuneÌý30,
2013 |
Ìý |
DecemberÌý31, 2012 |
Assets: |
Ìý |
Ìý |
Ìý |
U.S. Iron Ore |
$ |
1,791.6 |
|
Ìý |
$ |
1,735.1 |
|
Eastern Canadian Iron Ore |
7,860.8 |
|
Ìý |
7,605.1 |
|
Asia Pacific Iron Ore |
1,261.6 |
|
Ìý |
1,506.3 |
|
North American Coal |
1,867.7 |
|
Ìý |
1,877.8 |
|
Other |
643.9 |
|
Ìý |
570.9 |
|
Total segment assets |
13,425.6 |
|
Ìý |
13,295.2 |
|
Corporate |
169.3 |
|
Ìý |
279.7 |
|
Total assets |
$ |
13,594.9 |
|
Ìý |
$ |
13,574.9 |
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