Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

In the third quarter of 2012, management reorganized the Company's operations into four new reportable segments to better reflect its primary activities as a global rare earth and magnetic products enterprise: Resources; Chemicals and Oxides; Magnetic Materials and Alloys; and Rare Metals. The new composition of the Company's reportable segments is based on a combination of product lines and technologies aligned with its current strategy.

The Resources segment includes the Company's operations at its Molycorp Mountain Pass facility where it conducts rare earth minerals extraction to produce: rare earth concentrates; REO, including lanthanum, cerium, neodymium, praseodymium and yttrium; heavy rare earth elements, such as samarium, europium, gadolinium, terbium, dysprosium, and others; and SorbX^TM, a line of proprietary rare earth-based water treatment products.

The Chemicals and Oxides segment includes: production of REO at the Company's operations in Sillamäe, Estonia ("Molycorp Silmet"); heavy rare earths from the Company's facilities in Jiangyin, Jiangsu Province, China; and production of REO, salts of REEs, zirconium-based engineered materials and mixed rare earth/zirconium oxides from the Company's facilities in Zibo, Shandong Province, China. Rare earths products and zirconium-based engineered products are primarily supplied to the automotive catalyst, electronics, ceramic, clean technology and glass industries.

The Magnetic Materials and Alloys segment includes: the production of NdFeB magnet powders ("Neo Powders™") through Molycorp's wholly-owned manufacturing facilities in Tianjin, China and Korat, Thailand, under the Molycorp Magnequench brand. Neo Powders™ are used to make bonded magnets for a variety of electronic and mechanical products such as micro motors, precision motors, sensors and other applications requiring high levels of magnetic strength, flexibility, small size and reduced weight. This reporting segment also includes manufacturing of neodymium and samarium magnet alloys, other specialty alloy products and rare earth metals at Molycorp Metals and Alloys ("MMA") in Tolleson, Arizona.

The Rare Metals segment comprises: Molycorp's production of gallium, indium, tantalum and rhenium from its operations in Quapaw, Oklahoma; Blanding, Utah; Peterborough, Ontario; Napanee, Ontario; Sagard, Germany; and Hyeongok Industrial Zone in South Korea. This operating segment also includes tantalum and niobium from the Company's operations in Sillamäe, Estonia. Rare metals are primarily used in the wireless, light-emitting diode, flat panel display, turbine, solar and catalyst industries.

The asset retirement obligation is recognized only within the Resources segment. In addition, the annual profit earned from the Estonian operations are not taxed. In accordance with the Estonian Income Tax Act, only distribution of annual profit is subject to income tax in Estonia. Intersegment sales and transfers are based on similar arms-length transactions with third parties at the time of the sale.

    Some of the information under Chemicals and Oxides, Magnetic Materials and Alloys and Rare Metals for the year ended December 31, 2012 is actually for the period from June 12, 2012 (following the acquisition of Neo Material Technologies Inc., formerly referred to as "Neo" or "Neo Materials" and now Molycorp Minerals Canada ULC or "Molycorp Canada") through December 31, 2012.

In 2011, the basis of segmentation of the Company's activities was the location of its operations. As a result of the changes in the composition of the Company's reportable segments discussed above, the prior period reporting segments presentation has been revised for comparative purposes. Some of the information under Chemicals and Oxides and Rare Metals for the year ended December 31, 2011 is actually for the period from April 1, 2011 (the beginning of the reporting period of Molycorp Silmet) through December 31, 2011. The information under Magnetic Materials and Alloys for the year ended December 31, 2011 is actually for the period from April 15, 2011(the beginning of the reporting period of MMA) through December 31, 2011. The Rare Metal segment in 2011 includes only rare metals production from Molycorp Silmet.

Prior to 2011, there was only one segment consisting of the Molycorp Mountain Pass facility operations.

Year ended December 31, 2012	Resources			Chemicals and Oxides			Magnetic Materials and Alloys			Rare Metals			Eliminations(a)			Corporate and other(b)			Total Molycorp, Inc.
	(Revised)
Revenues:	(In thousands)
External	$	88,870		$	181,849		$	179,335		$	78,856		$	—					$	528,910
Intersegment	7,256			25,717			—			—			(32,973		)				—
Total revenues	$	96,126		$	207,566		$	179,335		$	78,856		$	(32,973	)				$	528,910
Depreciation, amortization and accretion	$	(13,991	)	$	(13,110	)	$	(19,737	)	$	(6,154	)	$	—		$	(133	)	$	(53,125	)
Operating (loss) income	$	(70,220	)	$	(191,059	)	$	(125,543	)	$	(20,408	)	$	24,803		$	(85,459	)	$	(467,886	)
(Loss) income before income taxes and equity earnings	$	(70,469	)	$	(190,094	)	$	(126,981	)	$	(19,918	)	$	24,803		$	(143,269	)	$	(525,928	)
Total assets at December 31, 2012	$	1,802,842		$	639,847		$	593,197		$	117,961		$	(187,567	)	$	26,255		$	2,992,535
Capital expenditures (c)	$	814,054		$	10,910		$	5,614		$	10,750		$	—		$	1,733		$	843,061

Year ended December 31, 2011	Resources			Chemicals and Oxides			Magnetic Materials and Alloys			Rare Metals			Eliminations(a)			Corporate and other(b)			Total Molycorp, Inc.
Revenues:	(In thousands)
External	$	253,563		$	40,216		$	56,772		$	46,280		$	—					$	396,831
Intersegment	55,155			13,902			—			—			(69,057		)				—
Total revenues	$	308,718		$	54,118		$	56,772		$	46,280		$	(69,057	)				$	396,831
Depreciation, amortization and accretion	$	(10,553	)	$	(1,958	)	$	(236	)	$	(2,449	)	$	—		$	(31	)	$	(15,227	)
Operating income (loss)	$	218,549		$	8,700		$	2,331		$	2,131		$	(27,443	)	$	(51,402	)	$	152,866
Income (loss) before income taxes	$	218,391		$	5,785		$	2,336		$	(634	)	$	(27,443	)	$	(51,525	)	$	146,910
Total assets at December 31, 2011	$	824,712		$	46,368		$	30,061		$	71,634		$	(143,730	)	$	426,080		$	1,255,125
Capital expenditures (c)	$	401,047		$	8,170		$	—		$	—		$	—		$	—		$	409,217

(a) The net elimination in operating results includes costs of sales eliminations of $57,776 and $41,614 for the year ended December 31, 2012 and 2011, respectively, which consist of intercompany gross profits as well as eliminations of lower of cost or market adjustments related to intercompany inventory. The total assets elimination is comprised primarily of intercompany investments and intercompany accounts receivable and profits in inventory.

(b) Corporate loss before income taxes and equity earnings includes business development costs, personnel and related costs, including stock-based compensation expense, accounting and legal fees, occupancy expense, information technology costs and interest expense. Other consists of nominal expenses incurred by the sales office in Tokyo, Japan. Total corporate assets is comprised primarily of cash and cash equivalents, the investment in the sales office in Tokyo and deferred tax assets.

(c) On an accrual basis excluding capitalized interest.

The geographic distribution of the Company’s revenues based on customers' locations for the years ended December 31, 2012, 2011 and 2010, was as follows:

	Years Ended December 31,
(In thousands)	2012		2011		2010
Asia:
China	$	118,086	$	421	$	909
Japan	160,942		204,262		9,569
Thailand	7,674		—		—
Hong Kong	4,793		—		—
South Korea	3,828		—		—
Singapore	212		—		9
North America	104,769		128,544		24,070
Europe	117,907		56,760		596
Other	10,699		6,844		4
Total	$	528,910	$	396,831	$	35,157

Long-lived tangible assets by geographic location at December 31, 2012 and 2011 were as follows:

	At December 31,
(In thousands)	2012		2011
North America	$	1,391,690	$	500,612
Europe	75,495		60,619
China	52,914		—
Thailand	5,902		—
Other Asia	18,221		397
Other	82		—
Total	$	1,544,304	$	561,628