Note 11 - Operating Segments

9 Months Ended

Dec. 31, 2011

Note 11 - Operating Segments Disclosure

(11) Operating Segments

Operating segments are components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision-making group is made up of the Chief Executive Officer, President, Chief Financial Officer, Chief Strategy Officer and the President of Hoku Materials. The chief operating decision-making group manages the profitability, cash flows, and assets of each segment’s various product or service lines and businesses. The Company has three operating business units: Hoku Solar, Hoku Materials and Tianwei Solar. Hoku Solar installs PV systems, Hoku Materials will manufacture polysilicon for resale, and Tianwei Solar, which was incorporated in October 2011, resells and distributes photovoltaic modules. A description of the products for each business unit is described in Note 1 of the Consolidated Financial Statements.

	Three Months Ended December 31,				Nine Months Ended December 31,
	2011		2010		2011		2010
	(amounts in thousands)
Revenue:

Hoku Solar	$	7,083	$	1,226	$	9,457	$	3,330
Hoku Materials		—		16		—		27
Tianwei Solar		—		—		—		—

Total consolidated revenue	$	7,083	$	1,242	$	9,457	$	3,357

	Three Months Ended December 31,						Nine Months Ended December 31,
	2011			2010			2011			2010
	(amounts in thousands)
Income (loss) from operations:
Hoku Solar	$	236		$	64		$	(173	)	$	234
Hoku Materials		(10,766	)		(3,114	)		(28,406	)		(8,043	)
Tianwei Solar		(43	)		—			(43	)		—

Total consolidated loss from operations	$	(10,573	)	$	(3,050	)	$	(28,622	)	$	(7,809	)

The reconciliation of segment operating results to the Company’s consolidated totals was as follows:

	Three Months Ended December 31,					Nine Months Ended December 31,
	2011		2010			2011			2010
	(amounts in thousands)
Consolidated loss from operations	$	(10,573)	$	(3,050	)	$	(28,622	)	$	(7,809	)
Interest and other income		—		27			—			166
Net income attributable to noncontrolling interest		(13)		(23	)		(82)			(97	)

Net loss attributable to Hoku Corporation	$	(10,586)	$	(3,046	)	$	(28,704	)	$	(7,740	)

The Company allocates its assets to its business units based on the primary business units benefiting from the assets. Unallocated assets are composed primarily of cash and cash equivalents and office equipment and furniture. Capital additions for the Hoku Materials business unit primarily relate to construction in progress.

	December 31, 2011		March 31, 2011
Identifiable assets:	(amounts in thousands)
Hoku Solar	$	8,183	$	4,356
Hoku Materials		642,765		497,337
Tianwei Solar		46		—
Unallocated assets		480		900

	$	651,474	$	502,593

- 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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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

Hoku Corp 10-Q