Segment Information

3 Months Ended

Sep. 30, 2011

Segment Reporting Disclosure [Text Block]

NOTE 8. SEGMENT INFORMATION

The Company operates through two operating segments consisting of its landfill operation and plastic bottle sorting and recycling. The landfill operating segment provides non-hazardous municipal solid waste processing and disposal services. The plastic bottle recycling segment sorts the waste plastic bottles from the landfill the Company is operating, outsources the processing function to Dongxin and HBC and sells the processed PET bottles and plastic granules on consignment basis through Dongxin and HBC.

All of the Company’s revenue is from customers in the PRC.

The measurement of segment income is determined as earnings before income taxes. Segment incomes are reported to the Company’s chief operating decision maker (“CODM”) using the same accounting policies as those used in the preparation of these condensed consolidated financial statements. Items that are not allocated to the Company’s operating segments are comprised primarily of selling, general and administrative expenses, interest income and expenses, other income and expenses and income taxes.

The segment information for the reportable segments for the three and nine months ended September 30, 2011 and 2010 and the reconciliation of reportable segment net sales and net income to the consolidated total are as follows:

	For the Three Months Ended September 30,
	Landfill		PET		Consolidated
	Disposal Fees		Bottle Fees		Total
2011
Revenue	$	1,343,009		830,798	$	2,173,807
Cost of revenue		464,482		216,643		681,125
Gross profit		878,527		614,155		1,492,681

Income from operations						1,390,567

Other income						65,549

Income before income taxes						1,456,116

Provision for income taxes						188,258

Net income					$	1,267,858

2010
Revenue	$	1,221,208		3,437,986	$	4,659,194
Cost of revenue		393,719		1,908,896		2,302,615
Gross profit		827,489		1,529,090		2,356,579

Income from operations						2,201,999

Other income						1,353

Income before income taxes						2,203,352

Provision for income taxes						284,325

Net income					$	1,919,027

	For the Nine Months Ended September 30,
	Landfill		PET		Consolidated
	Disposal Fees		Bottle Fees		Total
2011
Revenue	$	3,840,378		4,895,772	$	8,736,150
Cost of revenue		1,306,580		3,112,606		4,419,186
Gross profit		2,533,798		1,783,166		4,316,963

Income from operations						3,818,942

Other income						197,869

Income before income taxes						4,016,811

Provision for income taxes						520,684

Net income					$	3,496,127

2010
Revenue	$	3,530,736		7,959,964	$	11,490,700
Cost of revenue		1,133,679		4,173,824		5,307,503
Gross profit		2,397,057		3,786,140		6,183,197

Income from operations						5,733,693

Other income						24,787

Income before income taxes						5,758,480

Provision for income taxes						753,510

Net income					$	5,004,970

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Eastern Environment Solutions Corp. 10-Q