Operating Segment Information

6 Months Ended

Jun. 30, 2012

Operating Segment Information

Operating Segment Information

12.  Operating Segment Information

In September 2011, the Company revised its operating segments to reflect the September 2011 discontinuance of retail operations, the March 2011 discontinuance of golf operations and the Company’s increased emphasis on real estate, leasing, utilities and resort amenities operations. The reportable operating segment presentation adopted is consistent with how the Company’s chief operating decision maker determines the allocation of resources. Reportable segments are as follows:

·Real Estate includes the development and sale of real estate inventory and the operations of Kapalua Realty Company, a general brokerage real estate company located within the Kapalua Resort.

·Leasing primarily includes revenues and expenses from real property leasing activities, license fees and royalties for the use of certain of the Company’s trademarks and brand names by third parties, and the cost of maintaining the Company’s real estate assets, including conservation activities.

·Utilities primarily include the operations of Kapalua Water Company and Kapalua Waste Treatment Company, the Company’s water and sewage transmission operations (regulated by the Hawaii Public Utilities Commission) servicing the Kapalua Resort.  The operating segment also includes the management of ditch, reservoir and well systems that provide non-potable irrigation water to West and Upcountry Maui areas.

·Resort Amenities includes a spa, beach club and a membership program that provides certain benefits and privileges within the Kapalua Resort for its members.

Financial results for each of the Company’s reportable segments for the three and six months ended June 30, 2012 and 2011 were as follows:

	Three Months						Six Months
	Ended June 30,						Ended June 30,
	2012			2011			2012			2011
	(in thousands)
Operating Revenues
Real Estate	$	244		$	327		$	2,063		$	620
Leasing	1,479			1,100			2,981			2,447
Utilities	714			931			1,543			1,717
Resort Amenities	1,006			888			2,140			1,910
Other	9			569			35			966
Total Operating Revenues	$	3,452		$	3,815		$	8,762		$	7,660
Operating Income (Loss) (1)
Real Estate	$	(341	)	$	(203	)	$	712		$	(258	)
Leasing	214			(379		)	390			(640		)
Utilities	319			(86		)	341			(359		)
Resort Amenities	(19		)	(272		)	(59		)	(484		)
Other (2)	(755		)	(893		)	(1,559		)	(2,435		)
Total Operating Income (Loss)	(582		)	(1,833		)	(175		)	(4,176		)
Interest Expense, net	(466		)	(463		)	(1,100		)	(1,134		)
Loss from Continuing Operations	(1,048		)	(2,296		)	(1,275		)	(5,310		)
Income (Loss) from Discontinued Operations (Note 6)	14			(166		)	(3		)	15,273
Net Income (Loss)	$	(1,034	)	$	(2,462	)	$	(1,278	)	$	9,963

(1)  Includes allocations of selling and marketing and general and administrative expenses.

(2) Consists primarily of unallocated selling and marketing, general and administrative, pension, and miscellaneous expenses