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Notes to the consolidated financial
statements, REC Group
REC Annual Report 2011
Sovello AGwas 33.33 percent owned and jointly controlled by
REC ASA, EverGreen Solar Inc. and Q-Cells AG. Sovello AGwas sold
and deconsolidated fromApril 2010 and is re-presented as
discontinued operations.
Intercompany sales and transfers within the REC Group are based
on arms-length prices. Intercompany service transactions are based
on cost based prices.
Refer to the separate report from the Board of Directors for
discussion of segment performance.
No single customer represented more than ten percent of the
consolidated external revenues for the Group in 2011 or 2010.
Segment information for the year ended December 31, 2011
(NOK INMILLION)
REC SILICON RECWAFER REC SOLAR
OTHER
OPERATIONS ELIMINATIONS REC GROUP
Revenues - External
3 645
3 867
5 852
3
0
13 366
Revenues - Internal
1 940
547
5
89
-2 580
0
Total revenues
5 585
4 413
5 856
92
-2 580
13 366
EBITDA
2 781
21
-30
-140
234
2 867
Depreciation and amortization
-961
-417
-874
-26
0
-2 278
Impairment
-20
-5 807
-4 206
-64
0
-10 097
EBIT
1 801
-6 203
-5 110
-230
234
-9 508
Additions of non-current assets
157
252
288
10
0
707
Non-current assets at December 31*
11 269
34
4 916
66
0
16 285
* Non-current assets include property, plant, equipment, intangibles, prepaid capex and prepaid lease.
In 2011 all segments recognized write downs of, and realized losses on sales of inventories, primarily in RECWafer and REC Solar.
Included in the EBITDA for RECWafer for 2011 is income for cancellation of wafer sales contracts of NOK 945million, restructuring costs
of NOK 161million and expenses for onerous contracts of NOK 132million. Included in the EBITDA for REC Solar for 2011 is a gain on sale
of subsidiary of NOK 47million, restructuring costs of NOK 56million and expenses for onerous contracts of NOK 43million. See note 7 for
impairments of fixed and intangible assets in 2011.
Segment information for the year ended December 31, 2010
(NOK INMILLION)
REC SILICON RECWAFER REC SOLAR
OTHER
OPERATIONS SOVELLO
ADJUSTMENT
FOR
DISCONTIUNED
OPERATIONS ELIMINATIONS REC GROUP
Revenues - External
3 146
5 057
5 573
1
114
-114
0 13 776
Revenues - Internal
2 099
1 747
51
98
0
0
-3 995
0
Total revenues
5 245
6 804
5 624
99
114
-114
-3 995 13 776
EBITDA
2 735
808
228
-149
1
-1
-91
3 532
Depreciation and amortization
-875
-781
-796
-23
0
0
0 -2 476
Impairment
-6
-11
-21
0
-6
6
0
-38
EBIT
1 853
16
-589
-172
-5
5
-91
1 018
Additions of non-current assets
232
1 003
2 279
57
6
0
0
3 577
Non-current assets at December 31*
11 872
6 006
9 818
147
0
0
0 27 842
* Non-current assets include property, plant, equipment, intangibles, prepaid capex and prepaid lease.
Included in the EBITDA for RECWafer for 2010 is a gain of NOK 304million related to a cancellation fee received for a wafer sales contract.
Included in the EBITDA for RECSolar for 2010 are costs for restructuring and reversal of provisions for repair of junction boxes, with net costs
of NOK 27million.