| SEGMENT REPORTING |
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, Asia Pacific 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 Asia Pacific Coal operating segment is comprised of our 45 percent economic interest in Sonoma, located in Queensland, Australia, which is expected to be sold during the fourth quarter of 2012. 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 Asia Pacific Coal, 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 nine months ended SeptemberÌý30, 2012 and 2011:
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Ìý |
(In Millions) |
Ìý |
Three Months Ended
September 30, |
Ìý |
Nine Months Ended
September 30, |
Ìý |
2012 |
Ìý |
2011 |
Ìý |
2012 |
Ìý |
2011 |
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 |
$ |
796.0 |
|
Ìý |
52 |
Ìý% |
Ìý |
$ |
1,106.7 |
|
Ìý |
52 |
% |
Ìý |
$ |
1,942.7 |
|
Ìý |
45 |
% |
Ìý |
$ |
2,502.0 |
|
Ìý |
49 |
% |
Eastern Canadian Iron Ore |
253.1 |
|
Ìý |
16 |
Ìý% |
Ìý |
517.3 |
|
Ìý |
24 |
% |
Ìý |
777.8 |
|
Ìý |
18 |
% |
Ìý |
942.2 |
|
Ìý |
18 |
% |
Asia Pacific Iron Ore |
254.2 |
|
Ìý |
16 |
Ìý% |
Ìý |
400.1 |
|
Ìý |
19 |
% |
Ìý |
975.3 |
|
Ìý |
22 |
% |
Ìý |
1,127.1 |
|
Ìý |
22 |
% |
North American Coal |
241.8 |
|
Ìý |
16 |
Ìý% |
Ìý |
64.0 |
|
Ìý |
3 |
% |
Ìý |
640.9 |
|
Ìý |
15 |
% |
Ìý |
388.7 |
|
Ìý |
8 |
% |
Other |
(0.2 |
) |
Ìý |
— |
Ìý% |
Ìý |
1.0 |
|
Ìý |
2 |
% |
Ìý |
0.1 |
|
Ìý |
— |
% |
Ìý |
0.2 |
|
Ìý |
3 |
% |
Total revenues from product sales and services |
$ |
1,544.9 |
|
Ìý |
100 |
Ìý% |
Ìý |
$ |
2,089.1 |
|
Ìý |
100 |
% |
Ìý |
$ |
4,336.8 |
|
Ìý |
100 |
% |
Ìý |
$ |
4,960.2 |
|
Ìý |
100 |
% |
Sales margin: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. Iron Ore |
$ |
255.9 |
|
Ìý |
Ìý |
Ìý |
$ |
481.3 |
|
Ìý |
Ìý |
Ìý |
$ |
708.9 |
|
Ìý |
Ìý |
Ìý |
$ |
1,283.7 |
|
Ìý |
Ìý |
Eastern Canadian Iron Ore |
(40.5 |
) |
Ìý |
Ìý |
Ìý |
191.0 |
|
Ìý |
Ìý |
Ìý |
(43.0 |
) |
Ìý |
Ìý |
Ìý |
293.5 |
|
Ìý |
Ìý |
Asia Pacific Iron Ore |
(15.8 |
) |
Ìý |
Ìý |
Ìý |
214.6 |
|
Ìý |
Ìý |
Ìý |
256.1 |
|
Ìý |
Ìý |
Ìý |
615.4 |
|
Ìý |
Ìý |
North American Coal |
(1.3 |
) |
Ìý |
Ìý |
Ìý |
(42.7 |
) |
Ìý |
Ìý |
Ìý |
3.8 |
|
Ìý |
Ìý |
Ìý |
(60.4 |
) |
Ìý |
Ìý |
Other |
— |
|
Ìý |
Ìý |
Ìý |
(1.1 |
) |
Ìý |
Ìý |
Ìý |
7.8 |
|
Ìý |
Ìý |
Ìý |
(1.4 |
) |
Ìý |
Ìý |
Sales margin |
198.3 |
|
Ìý |
Ìý |
Ìý |
843.1 |
|
Ìý |
Ìý |
Ìý |
933.6 |
|
Ìý |
Ìý |
Ìý |
2,130.8 |
|
Ìý |
Ìý |
Other operating expense |
(122.0 |
) |
Ìý |
Ìý |
Ìý |
(26.0 |
) |
Ìý |
Ìý |
Ìý |
(272.3 |
) |
Ìý |
Ìý |
Ìý |
(185.4 |
) |
Ìý |
Ìý |
Other expense |
(43.9 |
) |
Ìý |
Ìý |
Ìý |
(54.7 |
) |
Ìý |
Ìý |
Ìý |
(134.7 |
) |
Ìý |
Ìý |
Ìý |
(61.0 |
) |
Ìý |
Ìý |
Income from continuing operations before income taxes and equity income (loss) from ventures |
$ |
32.4 |
|
Ìý |
Ìý |
Ìý |
$ |
762.4 |
|
Ìý |
Ìý |
Ìý |
$ |
526.6 |
|
Ìý |
Ìý |
Ìý |
$ |
1,884.4 |
|
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 |
$ |
24.9 |
|
Ìý |
Ìý |
Ìý |
$ |
23.0 |
|
Ìý |
Ìý |
Ìý |
$ |
71.9 |
|
Ìý |
Ìý |
Ìý |
$ |
62.5 |
|
Ìý |
Ìý |
Eastern Canadian Iron Ore |
41.7 |
|
Ìý |
Ìý |
Ìý |
43.2 |
|
Ìý |
Ìý |
Ìý |
118.2 |
|
Ìý |
Ìý |
Ìý |
84.5 |
|
Ìý |
Ìý |
Asia Pacific Iron Ore |
40.2 |
|
Ìý |
Ìý |
Ìý |
25.4 |
|
Ìý |
Ìý |
Ìý |
110.0 |
|
Ìý |
Ìý |
Ìý |
74.3 |
|
Ìý |
Ìý |
North American Coal |
25.1 |
|
Ìý |
Ìý |
Ìý |
19.7 |
|
Ìý |
Ìý |
Ìý |
69.5 |
|
Ìý |
Ìý |
Ìý |
62.1 |
|
Ìý |
Ìý |
Other |
1.0 |
|
Ìý |
Ìý |
Ìý |
8.4 |
|
Ìý |
Ìý |
Ìý |
12.7 |
|
Ìý |
Ìý |
Ìý |
22.9 |
|
Ìý |
Ìý |
Total depreciation, depletion and amortization |
$ |
132.9 |
|
Ìý |
Ìý |
Ìý |
$ |
119.7 |
|
Ìý |
Ìý |
Ìý |
$ |
382.3 |
|
Ìý |
Ìý |
Ìý |
$ |
306.3 |
|
Ìý |
Ìý |
Capital additions (1): |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. Iron Ore |
$ |
19.6 |
|
Ìý |
Ìý |
Ìý |
$ |
28.5 |
|
Ìý |
Ìý |
Ìý |
$ |
82.5 |
|
Ìý |
Ìý |
Ìý |
$ |
115.8 |
|
Ìý |
Ìý |
Eastern Canadian Iron Ore |
285.5 |
|
Ìý |
Ìý |
Ìý |
103.3 |
|
Ìý |
Ìý |
Ìý |
593.4 |
|
Ìý |
Ìý |
Ìý |
167.5 |
|
Ìý |
Ìý |
Asia Pacific Iron Ore |
5.8 |
|
Ìý |
Ìý |
Ìý |
57.3 |
|
Ìý |
Ìý |
Ìý |
132.0 |
|
Ìý |
Ìý |
Ìý |
140.6 |
|
Ìý |
Ìý |
North American Coal |
33.3 |
|
Ìý |
Ìý |
Ìý |
60.3 |
|
Ìý |
Ìý |
Ìý |
105.1 |
|
Ìý |
Ìý |
Ìý |
116.3 |
|
Ìý |
Ìý |
Other |
10.3 |
|
Ìý |
Ìý |
Ìý |
6.5 |
|
Ìý |
Ìý |
Ìý |
61.0 |
|
Ìý |
Ìý |
Ìý |
13.1 |
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Ìý |
Ìý |
Total capital additions |
$ |
354.5 |
|
Ìý |
Ìý |
Ìý |
$ |
255.9 |
|
Ìý |
Ìý |
Ìý |
$ |
974.0 |
|
Ìý |
Ìý |
Ìý |
$ |
553.3 |
|
Ìý |
Ìý |
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(1) |
Includes capital lease additions and non-cash accruals. Refer to NOTE 21 - CASH FLOW INFORMATION
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A summary of assets by segment is as follows:
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(In Millions) |
|
SeptemberÌý30, 2012 |
Ìý |
DecemberÌý31, 2011 |
Segment assets: |
Ìý |
Ìý |
Ìý |
U.S. Iron Ore |
$ |
1,841.4 |
|
Ìý |
$ |
1,691.8 |
|
Eastern Canadian Iron Ore |
8,307.7 |
|
Ìý |
7,973.1 |
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Asia Pacific Iron Ore |
1,864.8 |
|
Ìý |
1,511.2 |
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North American Coal |
1,904.6 |
|
Ìý |
1,814.4 |
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Other |
960.2 |
|
Ìý |
1,017.6 |
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Total segment assets |
14,878.7 |
|
Ìý |
14,008.1 |
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Corporate |
418.1 |
|
Ìý |
533.6 |
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Total assets |
$ |
15,296.8 |
|
Ìý |
$ |
14,541.7 |
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