Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations

Discontinued Operations

6.     Discontinued Operations

In September 2011, the Company ceased operations of the Kapalua Logo Shop, its last retail outlet and as of September 30, 2011, the Company’s retail operations are reported as discontinued operations.  The Kapalua Logo Shop retail space is being leased to a third-party operator as of October 1, 2011.  In June 2011, the Company ceased operating the Honolua Store and leased the premises to a third-party operator.

As of April 1, 2011, the Company’s business no longer includes the operation of the two championship golf courses at Kapalua Resort (Note 5).  The operating results for the golf courses and the gains and losses from disposal of the golf course land, improvements and equipment are reported as discontinued operations.  Income from discontinued golf course operations for the first nine months of 2011 includes a gain of $15.1 million from sale of the Bay Course.  Income from discontinued golf course operations for the third quarter and first nine months of 2010 includes a gain of $25.7 million from sale of the PGC.

The Company ceased all agriculture operations as of the end of 2009 and accordingly, these operations are reported as discontinued operations.  Loss from discontinued agriculture operations in 2011 includes the loss of $871,000 from the June 2011 sale of a portion of the former agriculture processing facilities (Note 5).  Income from discontinued agriculture operations for the nine months ended September 30, 2010 includes a credit of $2.3 million representing the gain from settlement of the Company’s post-retirement life insurance plans (Note 10).

Revenues and income (loss) before income taxes from discontinued operations were as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(in thousands)						(in thousands)
Revenues
Golf courses	$	—		$	2,353		$	3,375		$	7,516
Retail	290			2,031			$	4,278		$	6,619
Total	$	290		$	4,384		$	7,653		$	14,135
Income (Loss) from Discontinued Operations
Golf courses	$	40		$	25,103		$	14,826		$	23,891
Retail	(64		)	315			$	711		$	1,041
Agriculture	45			(200		)	(243		)	1,043
Total	$	21		$	25,218		$	15,294		$	25,975