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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2011
BUSINESS SEGMENTS

NOTE 16 – BUSINESS SEGMENTS

 

The Company has three reportable segments:  bromine, crude salt and chemical products.  The reportable segments are consistent with how management views the markets served by the Company and the financial information that is reviewed by its chief operating decision maker. The Company manages its sensors and controls businesses as components of an enterprise for which separate information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance.

 

An operating segment’s performance is primarily evaluated based on segment operating income, which excludes share-based compensation expense, certain corporate costs and other income not associated with the operations of the segment. These corporate costs (income) are separately stated below and also include costs that are related to functional areas such as accounting, treasury, information technology, legal, human resources, and internal audit. The Company believes that segment operating income, as defined above, is an appropriate measure for evaluating the operating performance of its segments.

 

Year Ended         Crude     Chemical     Segment              
December 31, 2011   Bromine *     Salt *     Products     Total     Corporate     Total  
Net revenue (external customers)   $ 107,849,304     $ 15,918,655     $ 41,212,494     $ 164,980,453     $ -     $ 164,980,453  
Net revenue (intersegment)     2,979,826       -       -       2,979,826       -       2,979,826  
Income (loss) from operations before taxes     37,023,963       7,688,190       10,237,586       54,949,739       (10,651,281 )     44,298,458  
Income taxes     9,373,961       1,466,421       2,562,489       13,402,871       -       13,402,871  
Income (loss) from operations after taxes     27,650,002       6,221,769       7,675,097       41,546,868       (10,651,281 )     30,895,587  
Total assets     160,421,921       51,109,956       46,010,276       257,542,153       785,546       258,327,699  
Depreciation and amortization     11,584,237       3,496,310       2,616,892       17,697,439       -       17,697,439  
Capital expenditures     34,792,502       20,331,308       1,197,331       56,321,141       -       56,321,141  
Write-off / Impairment     3,749,435       2,015,533       1,805,598       7,570,566       -       7,570,566  

 

Year Ended         Crude     Chemical     Segment              
December 31, 2010   Bromine *     Salt *     Products     Total     Corporate     Total  
Net revenue (external customers)   $ 99,211,812     $ 14,971,774     $ 44,151,437     $ 158,335,023     $ -     $ 158,335,023  
Net revenue (intersegment)     3,972,997       -       -       3,972,997       -       3,972,997  
Income (loss) from operations before taxes     48,474,611       11,360,476       12,218,613       72,053,700       (2,957,467 )     69,096,233  
Income taxes     12,943,451       2,040,287       3,071,111       18,054,849       -       18,054,849  
Income (loss) from operations after taxes     35,531,160       9,320,189       9,147,502       53,998,851       (2,957,467 )     51,051,384  
Total assets     128,513,686       39,696,781       38,153,844       206,364,311       356,713       206,721,024  
Depreciation and amortization     7,570,660       1,286,253       2,240,236       11,097,149       -       11,097,149  
Capital expenditures     19,458,955       13,712,849       7,483,230       40,655,034       -       40,655,034  

  

Year Ended         Crude     Chemical     Segment              
December 31, 2009   Bromine *     Salt *     Products     Total     Corporate     Total  
Net revenue (external customers)   $ 63,679,888     $ 10,650,698     $ 35,946,322     $ 110,276,908     $ -     $ 110,276,908  
Net revenue (intersegment)     1,073,502       -       -       1,073,502       -       1,073,502  
Income (loss) from operations before taxes     25,098,035       7,328,045       12,530,417       44,956,497       (3,244,411 )     41,712,086  
Income taxes     6,898,130       1,153,738       3,132,530       11,184,398       -       11,184,398  
Income (loss) from operations after taxes     18,199,905       6,174,307       9,397,887       33,772,099       (3,244,411 )     30,527,688  
Total assets     96,216,832       19,404,626       28,274,118       143,895,576       2,527,592       146,423,168  
Depreciation and amortization     5,182,245       866,750       1,150,663       7,199,658       -       7,199,658  
Capital expenditures     30,898,856       5,167,949       8,838,440       44,905,245       -       44,905,245  

 

 

* Certain common production overheads, operating and administrative expenses and asset items (mainly cash and certain office equipment) of bromine and crude salt segments in SCHC were split by reference to the average selling price and production volume of respective segment.

 

    Years ended December 31,  
Reconciliations   2011     2010     2009  
                   
Total segment operating income   $ 54,949,739     $ 72,053,700     $ 44,956,497  
Corporate costs     (10,651,281 )     (2,957,467 )     (3,244,411 )
Income from operations     44,298,458       69,096,233       41,712,086  
Other income     57,173       241,936       63,727  
Income before taxes   $ 44,355,631     $ 69,338,169     $ 41,775,813  

 

The following table shows the major customer(s) (10% or more) for the year ended December 31, 2011.

 

                      Chemical     Total     Percentage of  
          Bromine     Crude Salt     Products     Revenue     Total  
Number   Customer     (000’s)     (000’s)     (000’s)     (000’s)     Revenue (%)  
1   Shandong Morui Chemical Company Limited     $ 13,864     $ 3,020     $ 2,663     $ 19,547       11.9 %
TOTAL           $ 13,864     $ 3,020     $ 2,663     $ 19,547       11.9 %

 

The following table shows the major customer(s) (10% or more) for the year ended December 31, 2010.

 

                      Chemical     Total     Percentage of  
          Bromine     Crude Salt     Products     Revenue     Total  
Number   Customer     (000’s)     (000’s)     (000’s)     (000’s)     Revenue (%)  
1   Shouguang City Rongyuan Chemical Company Limited     $ 13,106     $ 3,634     $ -     $ 16,740       10.6 %
TOTAL           $ 13,106     $ 3,634     $ -     $ 16,740       10.6 %

 

The following table shows the major customer(s) (10% or more) for the year ended December 31, 2009.

 

                      Chemical     Total     Percentage of  
          Bromine     Crude Salt     Products     Revenue     Total  
Number   Customer     (000’s)     (000’s)     (000’s)     (000’s)     Revenue (%)  
1   Shandong Morui Chemical Company Limited     $ 9,533     $ 1,940     $ -     $ 11,473       10.4 %
2   Shouguang City Rongyuan Chemical Company Limited     $ 9,448     $ 1,991     $ -     $ 11,439       10.4 %
TOTAL           $ 18,981     $ 3,931     $ -     $ 22,912       20.8 %