Operating Segment Information

3 Months Ended

Mar. 31, 2013

Operating Segment Information

Operating Segment Information

12.  Operating Segment Information

The Company’s presentation of its reportable operating segments 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 expense 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 months ended March 31, 2013 and 2012 were as follows:

	Three Months
	Ended March 31,
	2013			2012
	(in thousands)
Operating Revenues
Real Estate	$	96		$	1,819
Leasing	1,326			1,502
Utilities	827			829
Resort Amenities	1,100			1,134
Other	4			26
Total Operating Revenues	$	3,353		$	5,310
Operating Income (Loss) (1)
Real Estate	$	(451	)	$	1,053
Leasing	(74		)	176
Utilities	120			22
Resort Amenities	(21		)	(40		)
Other (2)	(687		)	(804		)
Total Operating Income (Loss)	(1,113		)	407
Interest Expense, net	(694		)	(634		)
Loss from Continuing Operations	(1,807		)	(227		)
Loss from Discontinued Operations (Note 6)	(8		)	(17		)
Net Loss	$	(1,815	)	$	(244	)

(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.