Segment Information

3 Months Ended

Mar. 31, 2012

Segment Information

Segment Information

(2) Segment Information

        The Company is currently organized into three primary divisions or operating segments: Molycorp Mountain Pass, Molycorp Silmet and Molycorp Metals and Alloys ("MMA"). Molycorp Mountain Pass owns and operates the Company's rare earth mine and processing facilities in Mountain Pass, California (the "Molycorp Mountain Pass facility"). Molycorp Silmet, which was acquired on April 1, 2011, produces REOs and rare metals at the Company's manufacturing facility located in Sillamäe, Estonia. MMA, which was acquired on April 15, 2011, manufactures neodymium and samarium magnet alloy and other specialty alloy products at the Company's facility in Tolleson, Arizona. Each of the segments has only one production and shipping location. Sales to external customers by geographic area are based on the location in which the sale originated.

        The following table provides operating and financial information of the three segments as of and for the three months ended March 31, 2012:

Three Months Ended March 31, 2012 (In thousands)	Molycorp Mountain Pass			Molycorp Silmet			MMA			Other(a)			Eliminations(b)			Total Molycorp, Inc.
Sales:
External	$	44,478		$	21,036		$	18,956		$	—		$	—		$	84,470
Intersegment		1,832			3,210			—						(5,042	)		—
Total sales		46,310			24,246			18,956
Cost of goods sold		(18,846	)		(34,774	)		(18,632	)		—			18,809			(53,443	)
Selling, general and administrative expenses		(29,079	)		(1,714	)		(457	)		(273	)		309			(31,214	)
Depreciation, amortization and accretion expense		(334	)		—			—			(24	)		—			(358	)
Operating (loss) income		(1,949	)		(12,242	)		(133	)		(297	)		14,076			(545	)
Other (expense) income		(6,444	)		1,579			(4	)		(20	)		—			(4,889	)
Loss before income taxes and equity earnings	$	(8,393	)	$	(10,663	)	$	(137	)	$	(317	)	$	14,076		$	(5,434	)
Total assets at March 31, 2012	$	1,675,653		$	100,499		$	24,313		$	630		$	(112,342	)	$	1,688,753
Capital expenditures (accrual basis excluding capitalized interest)	$	259,438		$	2,501		$	100		$	—		$	—		$	262,039

(a)

Includes expenses incurred by and capital invested in the sales office in Tokyo, Japan.

(b)

The $112,342 of total assets eliminations is comprised of $98,883 of intercompany investments and $13,459 of intercompany accounts receivable and profits in inventory. The $18,809 cost of goods sold elimination amount includes elimination of the intercompany gross profits as well as elimination of lower of cost or market adjustments related to the intercompany inventory.