Note 10 - Reportable Operating Segments

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

10

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REPORTABLE OPERATING SEGMENTS

The Company’s reportable operating segments are comprised of the discrete business units whose operating results are regularly reviewed by the Company’s Chief Executive Officer – its chief decision maker – in assessing performance and determining the allocation of resources. The Company’s reportable operating segments are as follows:

• Real Estate – includes land planning and entitlement, development and sales activities. This segment also includes the operations of Kapalua Realty Company Ltd., a general brokerage real estate company located within the Kapalua Resort.

• Leasing – includes residential, resort, commercial, industrial and agricultural land and property leases, licensing of the Company’s registered trademarks and trade names, and stewardship and conservation efforts.

• Utilities – includes the operations of the Company’s two Hawaii Public Utilities Commission-regulated subsidiaries which provide potable and non-potable water and wastewater transmission services to the Kapalua Resort. In addition, this segment also includes management of ditch, reservoir and well systems which provide non-potable irrigation water systems in West and Upcountry Maui.

• Resort Amenities – include the operations of the Kapalua Club, a private, non-equity club providing its members special programs, access and other privileges at certain of the amenities at the Kapalua Resort including a 30,000 square foot full-service spa and a private pool-side dining beach club.

The Company’s reportable operating segment results are measured based on operating income (loss), exclusive of interest, depreciation, general and administrative, share-based compensation, pension and other postretirement expenses.

Reportable operating segment revenues and income for the three and nine months ended September 30, 2016 and 2015 were as follows:

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2016		2015		2016		2015
	(in thousands)				(in thousands)
Operating Segment Revenues
Real estate	$	3,210	$	12,054	$	18,876	$	12,377
Leasing		1,680		1,311		4,572		4,148
Utilities		813		785		2,539		2,409
Resort amenities and other		359		330		1,030		1,105
Total Operating Segment Revenues	$	6,062	$	14,480	$	27,017	$	20,039
Operating Segment Income (Loss)
Real estate	$	2,768	$	10,438	$	16,778	$	10,344
Leasing		560		855		2,195		2,538
Utilities		124		206		630		635
Resort amenities and other		192		123		357		419
Total Operating Segment Income	$	3,644	$	11,622	$	19,960	$	13,936