Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v2.4.0.6
Segment Reporting
 3 Months Ended
Mar. 31, 2012
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, North American Coal, Asia Pacific Iron Ore, 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 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. The Asia Pacific Iron Ore segment is located in Western Australia and provides iron ore to the seaborne market for Asian steel producers. 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. 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 world-class 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 months ended March 31, 2012 and 2011:

 

     (In Millions)  
     Three Months Ended
March 31, 		 
     2012      2011  

Revenues from product sales and services:

            

U.S. Iron Ore

      $ 441.7           35%         $ 510.2           43%   

Eastern Canadian Iron Ore

      220.7           18%         127.3           11%   

North American Coal

      189.9           15%         165.0           14%   

Asia Pacific Iron Ore

      359.8           28%         345.4           29%   

Other

      52.6           4%         35.3           3%   
  

 

 

        

 

 

     

Total revenues from product sales and services for reportable segments

      $   1,264.7           100%         $   1,183.2           100%   
  

 

 

        

 

 

     

Sales margin:

            

U.S. Iron Ore

      $ 166.9              $ 361.3        

Eastern Canadian Iron Ore

      (14.3)             34.5        

North American Coal

      14.5              (2.9)       

Asia Pacific Iron Ore

      125.0              195.8        

Other

      11.4              10.8        
  

 

 

        

 

 

     

Sales margin

      303.5              599.5        

Other operating expense

      (72.4)             (57.4)       

Other income (expense)

      (43.5)             20.9        
  

 

 

        

 

 

     

Income from continuing operations before income taxes and equity income (loss) from ventures

      $ 187.6              $ 563.0        
  

 

 

        

 

 

     

Depreciation, depletion and amortization:

            

U.S. Iron Ore

      $ 23.2              $ 17.5        

Eastern Canadian Iron Ore

      37.9              9.6        

North American Coal

      20.1              21.6        

Asia Pacific Iron Ore

      30.0              24.0        

Other

      6.1              7.1        
  

 

 

        

 

 

     

Total depreciation, depletion and amortization

      $ 117.3              $ 79.8        
  

 

 

        

 

 

     

Capital additions (1):

            

U.S. Iron Ore

      $ 34.8              $ 31.6        

Eastern Canadian Iron Ore

      130.6              3.5        

North American Coal

      39.1              27.5        

Asia Pacific Iron Ore

      109.3              25.3        

Other

      39.6              3.1        
  

 

 

        

 

 

     

Total capital additions

      $ 353.4              $ 91.0        
  

 

 

        

 

 

     

(1) Includes capital lease additions and non-cash accruals.

A summary of assets by segment is as follows:

 

     (In Millions)  
     March 31,
2012 		     December 31,
2011		  

Segment Assets:

      

U.S. Iron Ore

      $ 1,758.9           $     1,691.8     

Eastern Canadian Iron Ore

      8,008.0           7,973.1     

North American Coal

      1,948.3           1,814.4     

Asia Pacific Iron Ore

      1,885.5           1,511.2     

Other

      984.6           1,017.6     
  

 

 

     

 

 

  

Total segment assets

      14,585.3           14,008.1     

Corporate

      308.0           533.6     
  

 

 

     

 

 

  

Total assets

      $         14,893.3           $   14,541.7