Segment and geographical information

3 Months Ended

Mar. 31, 2011

Segment and geographical information [Abstract]

Segment and geographical information

		We adopt disclosures about segments of an enterprise and related information with respect to the information we present about our operating segments. The relevant standard requiring such disclosures introduced a “management approach” concept for reporting segment information, whereby such information is required to be reported on the basis that the chief decision-maker uses internally for evaluating segment performance and deciding how to allocate resources to segments. In line with our strategy to become a leading global player in the fertilizer business, on May 27, 2010 we acquired 58.6% of the equity capital of Fertilizantes Fosfatados S.A. — Fosfertil (Fosfertil) and the Brazilian fertilizer assets of Bunge Participações e Investimentos S.A. (BPI), currently renamed Vale Fosfatados S.A. Considering this new segment acquisition, fertilizers, and the related reorganization that occurred for the operating segments are:

		Bulk Material — comprised of iron ore mining and pellet production, as well as our Brazilian Northern and Southern transportation systems, including railroads, ports and terminals, as they pertain to mining operations. Manganese mining and ferroalloys are also included in this segment.

		Base Metals — comprised of the production of non-ferrous minerals, including nickel (co-products and by-products), copper and investments in joint ventures and affiliates engaged in aluminum.

		Fertilizers — comprised of the three important groups of nutrients: potash, phosphates and nitrogen. This business is being formed through a combination of acquisitions and organic growth.

		Logistic Services — comprised of our transportation systems as they pertain to the operation of our ships, ports and railroads for third-party cargos.

		Others — comprised of our investments in joint ventures and affiliates engaged in other businesses.

		Information presented to senior management with respect to the performance of each segment is generally derived directly from the accounting records maintained in accordance with accounting practices adopted in Brazil together with certain minor inter-segment allocations.

Consolidated net income and principal assets are reconciled as follows:

Results by segment — before eliminations (aggregated)


	Three-month period ended (unaudited)
	March 31, 2011																					December 31, 2010																					March 31, 2010
	Bulk			Base																		Bulk			Base																		Bulk			Base
	Material			Metals			Fertilizers			Logistic			Others			Elimination			Consolidated			Material			Metals			Fertilizers			Logistic			Others			Elimination			Consolidated			Material			Metals			Fertilizers			Logistic			Others			Elimination			Consolidated
RESULTS
Gross revenues		16,488			3,088			831			389			185			(7,433	)		13,548			18,687			3,760			862			456			333			(8,891	)		15,207			7,703			2,133			65			352			77			(3,482	)		6,848
Cost and expenses		(10,003	)		(1,873	)		(688	)		(351	)		(311	)		7,433			(5,793	)		(11,334	)		(2,792	)		(776	)		(400	)		(255	)		8,891			(6,666	)		(5,093	)		(1,860	)		(39	)		(292	)		(69	)		3,482			(3,871	)
Research and development		(112	)		(74	)		(18	)		(21	)		(117	)		—			(342	)		(103	)		(109	)		(39	)		(30	)		(20	)		—			(301	)		(44	)		(42	)		(7	)		(11	)		(68	)		—			(172	)
Gain on sale of assets		—			1,513			—			—			—			—			1,513			—			—			—			—			—			—			—			—			—			—			—			—			—			—
Depreciation, depletion and amortization		(434	)		(357	)		(117	)		(44	)		(5	)		—			(957	)		(424	)		(480	)		(128	)		(41	)		—			—			(1,073	)		(376	)		(325	)		(7	)		(35	)		—			—			(743	)

Operating income (loss)		5,939			2,297			8			(27	)		(248	)		—			7,969			6,826			379			(81	)		(15	)		58			—			7,167			2,190			(94	)		12			14			(60	)		—			2,062
Financial income		838			2			16			3			2			(696	)		165			696			198			17			3			9			(806	)		117			566			(2	)		—			1			188			(705	)		48
Financial expenses		(1,022	)		(230	)		(9	)		(15	)		(2	)		696			(582	)		(1,160	)		(503	)		(7	)		(2	)		(60	)		806			(926	)		(757	)		(199	)		—			(7	)		(207	)		705			(465	)
Gains (losses) on derivatives, net		251			(12	)		—			—			—			—			239			486			(13	)		—			—			—			—			473			(199	)		(31	)		—			—			—			—			(230	)
Foreign exchange and monetary gains (losses), net		18			13			56			(7	)		—			—			80			(46	)		80			45			(21	)		(7	)		—			51			(53	)		26			—			(2	)		(1	)		—			(30	)
Discontinued operations, net of tax		—			—			—			—			—			—			—			—			—			—			—			—			—			—			—			(145	)		—			—			—			—			(145	)
change in provision for losses on equity investments		258			(3	)		—			36			(11	)		—			280			403			9			—			32			(141	)		—			303			58			6			—			12			20			—			96
Income taxes		(981	)		(401	)		3			2			—			—			(1,377	)		(1,268	)		125			(9	)		9			6			—			(1,137	)		147			67			—			4			21			—			239
Noncontrolling interests		2			14			4			—			32			—			52			(2	)		(144	)		19			—			(4	)		—			(131	)		—			29			—			—			—			—			29

Net income attributable to the Company’s stockholders		5,303			1,680			78			(8	)		(227	)		—			6,826			5,935			131			(16	)		6			(139	)		—			5,917			1,952			(343	)		12			22			(39	)		—			1,604

Sales classified by geographic destination:
Foreign market
America, except United States		472			540			19			2			2			(308	)		727			459			550			28			—			—			(263	)		774			193			271			—			12			2			(145	)		333
United States		6			479			—			—			2			(12	)		475			53			294			—			—			—			(14	)		333			1			148			—			—			2			(16	)		135
Europe		3,680			677			32			2			12			(1,767	)		2,636			3,555			1,152			6			—			14			(2,046	)		2,681			2,151			665			—			—			2			(1,461	)		1,357
Middle East/Africa/Oceania		853			16			—			—			—			(413	)		456			739			120			18			—			—			(247	)		630			193			49			—			—			—			(13	)		229
Japan		1,979			377			—			—			—			(847	)		1,509			2,113			453			—			—			8			(912	)		1,662			1,206			272			—			—			—			(646	)		832
China		6,825			397			—			—			41			(3,239	)		4,024			8,939			380			—			—			22			(4,074	)		5,267			2,675			201			—			—			—			(716	)		2,160
Asia, other than Japan and China		1,365			406			14			—			—			(601	)		1,184			1,604			603			13			—			—			(856	)		1,364			451			326			—			—			—			(233	)		544
Brazil		1,308			196			766			385			128			(246	)		2,537			1,225			208			797			456			289			(479	)		2,496			833			201			65			340			71			(252	)		1,258

		16,488			3,088			831			389			185			(7,433	)		13,548			18,687			3,760			862			456			333			(8,891	)		15,207			7,703			2,133			65			352			77			(3,482	)		6,848

Operating segment — after eliminations (disaggregated)


	Three-month period ended (unaudited)
	March 31, 2011
														Depreciation,						Property, plant		Addition to
			Value added					Cost and			Operating			depletion and			Operating			and equipment,		property, plant
	Revenue		tax			Net revenues		expenses			profit			amortization			income			net		and equipment		Investments
Bulk Material
Iron ore		7,287		(110	)		7,177		(1,736	)		5,441			(357	)		5,084			29,377		1,177		125
Pellets		1,878		(61	)		1,817		(840	)		977			(36	)		941			2,551		353		1,035
Manganese		43		(2	)		41		(21	)		20			(5	)		15			20		—		—
Ferroalloys		157		(12	)		145		(111	)		34			(11	)		23			308		11		—
Coal		154		—			154		(253	)		(99	)		(25	)		(124	)		3,409		388		244

		9,519		(185	)		9,334		(2,961	)		6,373			(434	)		5,939			35,665		1,929		1,404
Base Metals
Nickel and other products (*)		2,115		—			2,115		(1,150	)		965			(338	)		627			29,409		371		16
Copper concentrate		251		(17	)		234		(132	)		102			(18	)		84			3,519		170		110
Aluminum products		383		(5	)		378		(304	)		74			(1	)		73			—		16		3,689

		2,749		(22	)		2,727		(1,586	)		1,141			(357	)		784			32,928		557		3,815
Fertilizers
Potash		62		(4	)		58		(69	)		(11	)		(7	)		(18	)		1,764		7		—
Phosphates		536		(28	)		508		(408	)		100			(87	)		13			7,811		127		—
Nitrogen		172		(23	)		149		(127	)		22			(23	)		(1	)		839		—		—
Others fertilizers products		17		(3	)		14		—			14			—			14			—		—		—

		787		(58	)		729		(604	)		125			(117	)		8			10,414		134		—
Logistics
Railroads		250		(45	)		205		(197	)		8			(37	)		(29	)		1,383		36		534
Ports		78		(9	)		69		(60	)		9			(7	)		2			469		37		—
Ships		—		—			—		—			—			—			—			770		23		137

		328		(54	)		274		(257	)		17			(44	)		(27	)		2,622		96		671
Others		165		(16	)		149		(392	)		(243	)		(5	)		(248	)		4,869		97		2,436
Gain on sale of assets		—		—			—		1,513			1,513			—			1,513			—		—		—

		13,548		(335	)		13,213		(4,287	)		8,926			(957	)		7,969			86,498		2,813		8,326


(*)		Includes nickel co-products and by-products (copper, precious metals, cobalt and others).

Operating segment — after eliminations (disaggregated)


	Three-month period ended (unaudited)
	December 31, 2010
														Depreciation,						Property, plant		Addition to
			Value added					Cost and			Operating			depletion and			Operating			and equipment,		property, plant
	Revenue		tax			Net revenues		expenses			profit			amortization			income			net		and equipment			Investments
Bulk Material
Iron ore		8,477		(101	)		8,376		(2,275	)		6,101			(360	)		5,741			30,412		831			107
Pellets		1,927		(55	)		1,872		(785	)		1,087			(29	)		1,058			1,445		87			1,058
Manganese		44		(2	)		42		(33	)		9			(4	)		5			24		2			—
Ferroalloys		186		(14	)		172		(81	)		91			(7	)		84			292		16			—
Coal		241		—			241		(279	)		(38	)		(24	)		(62	)		3,020		289			223

		10,875		(172)			10,703		(3,453	)		7,250			(424)			6,826			35,193		1,225			1,388

Base Metals
Nickel and other products (*)		2,017		—			2,017		(1,346	)		671			(454	)		217			28,623		724			23
Copper concentrate		311		(11	)		300		(201	)		99			(25	)		74			3,579		(25	)		90
Aluminum products		691		(4	)		687		(598	)		89			(1	)		88			395		216			152

		3,019		(15	)		3,004		(2,145	)		859			(480	)		379			32,597		915			265
Fertilizers
Potash		73		—			73		(131	)		(58	)		(7	)		(65	)		474		348			—
Phosphates		541		(12	)		529		(443	)		86			(79	)		7			7,560		188			—
Nitrogen		151		(19	)		132		(115	)		17			(42	)		(25	)		809		1			—
Others fertilizers products		4		(2	)		2		—			2			—			2			146		3			—

		769		(33	)		736		(689	)		47			(128	)		(81	)		8,989		540			—
Logistics
Railroads		262		(39	)		223		(190	)		33			(37	)		(4	)		1,278		71			511
Ports		72		(8	)		64		(71	)		(7	)		(7	)		(14	)		297		22			—
Ships		—		—			—		—			—			3			3			747		747			135

		334		(47	)		287		(261	)		26			(41	)		(15	)		2,322		840			646
Others		210		(11	)		199		(141	)		58			—			58			3,995		1,222			2,198

		15,207		(278	)		14,929		(6,689	)		8,240			(1,073	)		7,167			83,096		4,742			4,497


(*)		Includes nickel co-products and by-products (copper, precious metals, cobalt and others).

Operating segment — after eliminations (disaggregated)


	Three-month period ended (unaudited)
	March 31, 2010
																				Property,		Addition to
														Depreciation,						plant and		property,
			Value added			Net		Cost and			Operating			depletion and			Operating			equipment,		plant and
	Revenue		tax			revenues		expenses			profit			amortization			income			net		equipment		Investments
Bulk Material
Iron ore		3,747		(70	)		3,677		(1,449	)		2,228			(325	)		1,903			24,664		554		98
Pellets		775		(68	)		707		(432	)		275			(24	)		251			1,581		52		1,033
Manganese		58		—			58		(15	)		43			(1	)		42			24		—		—
Ferroalloys		142		(16	)		126		(72	)		54			(11	)		43			251		5		—
Coal		127		—			127		(161	)		(34	)		(15	)		(49	)		1,735		29		219
Pig iron		—		—			—		—			—			—			—			—		—		—

		4,849		(154	)		4,695		(2,129	)		2,566			(376	)		2,190			28,255		640		1,350
Base Metals
Nickel and other products (*)		747		—			747		(658	)		89			(239	)		(150	)		27,801		322		27
Kaolin		—		—			—		—			—			—			—			—		—		—
Copper concentrate		180		(7	)		173		(123	)		50			(18	)		32			2,483		224		85
Aluminum products		599		(10	)		589		(497	)		92			(60	)		32			4,536		61		141

		1,526		(17	)		1,509		(1,278	)		231			(317	)		(86	)		34,820		607		253
Fertilizers
Potash		65		(3	)		62		(43	)		19			(7	)		12			1,792		5		—

		65		(3	)		62		(43	)		19			(7	)		12			1,792		5		—
Logistics
Railroads		236		(42	)		194		(152	)		42			(27	)		15			1,044		21		470
Ports		75		(10	)		65		(55	)		10			(6	)		4			239		2		—
Ships		3		—			3		(6	)		(3	)		(2	)		(5	)		—		—		122

		314		(52	)		262		(213	)		49			(35	)		14			1,283		23		592
Others		94		(18	)		76		(136	)		(60	)		(8	)		(68	)		1,940		542		2,321

		6,848		(244	)		6,604		(3,799	)		2,805			(743	)		2,062			68,090		1,817		4,516


(*)		Includes nickel co-products and by-products (copper, precious metals, cobalt and others).