Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v2.4.0.6
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2013
Segment Reporting [Abstract]  
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, 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 six 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. On March 28, 2013, an unknown event caused the Santana port shiploader to collapse into the Amazon river, preventing further ship loading by the mine operator, Anglo American. The investigation into the root cause of the collapse is ongoing as Anglo American develops a business continuation plan. The previously announced sale transaction remains in place, but without a projected close date until the port situation is clarified. 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 months ended March 31, 2013 and 2012, including a reconciliation of segment sales margin to Income from Continuing Operations Before Income Taxes and Equity Loss from Ventures:
 
(In Millions)
 
Three Months Ended
March 31,
 
2013
 
2012
Revenues from product sales and services:
 
 
 
 
 
 
 
U.S. Iron Ore
$
410.1

 
36
%
 
$
441.7

 
36
%
Eastern Canadian Iron Ore
245.3

 
22
%
 
220.7

 
18
%
Asia Pacific Iron Ore
270.8

 
24
%
 
359.8

 
30
%
North American Coal
214.3

 
18
%
 
189.9

 
16
%
Other
—

 
—
%
 
0.3

 
—
%
Total revenues from product sales and services
$
1,140.5

 
100
%
 
$
1,212.4

 
100
%
 
 
 
 
 
 
 
 
Sales margin:
 
 
 
 
 
 
 
U.S. Iron Ore
$
157.3

 
 
 
$
166.9

 
 
Eastern Canadian Iron Ore
19.4

 
 
 
(14.3
)
 
 
Asia Pacific Iron Ore
61.3

 
 
 
125.0

 
 
North American Coal
1.8

 
 
 
14.5

 
 
Other
(1.9
)
 
 
 
(0.3
)
 
 
Sales margin
237.9

 
 
 
291.8

 
 
Other operating expense
(69.6
)
 
 
 
(68.9
)
 
 
Other income (expense)
(48.0
)
 
 
 
(43.3
)
 
 
Income from continuing operations before income taxes and equity loss from ventures
$
120.3

 
 
 
$
179.6

 
 
 
 
 
 
 
 
 
 
Depreciation, depletion and amortization:
 
 
 
 
 
 
 
U.S. Iron Ore
$
26.6

 
 
 
$
23.2

 
 
Eastern Canadian Iron Ore
41.1

 
 
 
37.9

 
 
Asia Pacific Iron Ore
36.4

 
 
 
30.0

 
 
North American Coal
32.5

 
 
 
20.1

 
 
Other
4.0

 
 
 
6.1

 
 
Total depreciation, depletion and amortization
$
140.6

 
 
 
$
117.3

 
 
 
 
 
 
 
 
 
 
Capital additions (1):
 
 
 
 
 
 
 
U.S. Iron Ore
$
11.7

 
 
 
$
34.8

 
 
Eastern Canadian Iron Ore
167.0

 
 
 
130.6

 
 
Asia Pacific Iron Ore
4.3

 
 
 
109.3

 
 
North American Coal
11.1

 
 
 
39.1

 
 
Other
1.6

 
 
 
39.6

 
 
Total capital additions
$
195.7

 
 
 
$
353.4

 
 
                                         
(1)    Includes capital lease additions and non-cash accruals. Refer to NOTE 20 - CASH FLOW INFORMATION.
A summary of assets by segment is as follows:
 
(In Millions)
 
March 31, 2013
 
December 31, 2012
Assets:
 
 
 
U.S. Iron Ore
$
1,848.4

 
$
1,735.1

Eastern Canadian Iron Ore
7,719.7

 
7,605.1

Asia Pacific Iron Ore
1,474.4

 
1,506.3

North American Coal
1,829.7

 
1,877.8

Other
599.3

 
570.9

Total segment assets
13,471.5

 
13,295.2

Corporate
350.4

 
279.7

Total assets
$
13,821.9

 
$
13,574.9