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16. BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
16. 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

December 31, 2012

   Bromine *    

Crude

 Salt *

    

Chemical

 Products

    

Segment

 Total

     Corporate     Total  

Net revenue

(external customers)

   $ 56,332,785     $ 11,143,848     $ 34,224,249     $ 101,700,882     $ -     $ 101,700,882  
Net revenue (intersegment)     2,739,256       -       -       2,739,256       -       2,739,256  
Income (loss) from operations before taxes     9,817,947       2,932,694       9,289,175       22,039,816       (1,554,961 )     20,484,855  
Income taxes     2,658,235       588,556       2,344,662       5,591,453       -       5,591,453  
Income (loss) from operations after taxes     7,159,712       2,344,138       6,944,513       16,448,363       (1,554,961 )     14,893,402  
Total assets     168,434,071       55,732,942       53,995,682       278,162,695       30,339       278,193,034  
Depreciation and amortization     14,589,701       6,063,323       2,664,571       23,317,595       -       23,317,595  
Capital expenditures         26,302,483       5,771,888       10,180,860       42,255,231       -       42,255,231  
Write-off / Impairment     891,605       150,533       -       1,042,138       -       1,042,138  

 

 

 

Year Ended

December 31, 2011

   Bromine *    

Crude

 Salt *

    

Chemical

 Products

    

Segment

 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  

 

 

 

* 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   2012     2011    
               
Total segment operating income   $ 22,039,816     $ 54,949,739    
Corporate costs     (1,554,961 )     (10,651,281 )  
Income from operations     20,484,855       44,298,458    
Other income     102,101       57,173    
Income before taxes   $ 20,586,956     $ 44,355,631    
                     

 

 

 

The following table shows the major customer(s) (10% or more) for the year ended December 31, 2012.

 

Number   Customer

Bromine

(000’s)

  

Crude Salt

(000’s)

  

Chemical Products

(000’s)

  

Total

Revenue

 (000’s)

  

Percentage of

Total

Revenue (%)

 1   Shandong Morui Chemical Company Limited

 

$ 6,267

  

 

$ 2,376

  

 

$ 4,038

   $  12,681   12.5%
TOTAL     $  6,267   $  2,376   $  4,038   $  12,681   12.5%

 

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

 

Number   Customer

Bromine

(000’s)

  

Crude Salt

(000’s)

  

Chemical Products

(000’s)

  

Total

Revenue

 (000’s)

  

Percentage of

Total

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%