Note 15 - Reportable Operating Segments

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15. 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 and by the Board of Directors. Reportable operating segments are as follows:

• Real estate includes the planning, entitlement, development, and sale of real estate inventory.

• Leasing 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 watershed conservation activities. The operating segment also includes the revenues and expenses from the management of ditch, reservoir and well systems that provide non-potable irrigation water to West and Upcountry Maui areas.

• Resort amenities include a membership program that provides certain benefits and privileges within the Kapalua Resort for its members.

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

Reportable operating segment revenues and income for the three and nine months ended September 30, 2023 and 2022 did not include land sales in these respective periods as opposed to $11.6M in properties sold in the prior three and nine month periods ending September 30, 2022. This is purposeful as the Company is evaluating its commercial assets and land holdings to determine better utilization to value creating of its assets. The reportable segment data is presented as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	(unaudited)						(unaudited)
	2023			2022			2023			2022
	(in thousands)
Operating Segment Revenues
Real estate	$	-		$	-		$	19		$	11,600
Leasing		1,931			2,330			6,249			6,559
Resort amenities and other		170			221			604			628
Total Operating Segment Revenues	$	2,101		$	2,551		$	6,872		$	18,787
Operating Segment Income (Loss)
Real estate	$	(108	)	$	(117	)	$	(507	)	$	10,687
Leasing		780			1,461			3,265			3,951
Resort amenities and other		(31	)		(109	)		(509	)		(542	)
Total Operating Segment Income	$	641		$	1,235		$	2,249		$	14,096