DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2011

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

7.     DISCONTINUED OPERATIONS

        In September 2011, the Company ceased operations of the Kapalua Logo Shop, and as of October 1, 2011, the retail space was leased to a third party operator. In June 2011, the Company ceased operating the Honolua Store and leased the premises to a third party operator. At the end of the lease back arrangements for the Bay Course and the PGC, the Company gave up its right to continue to operate the retail operations at the two pro shops and entered into an agreement whereby it would receive royalties for certain merchandise sold by the owner of the golf courses. Following the cessation of operations of the Kapalua Logo Shop in September, the Company's retail operations are being reported as discontinued operations.

        As of April 2011, the Company's business no longer included the operations of the PGC and the Bay Course at Kapalua Resort (Note 2) and accordingly, these operations are reported as discontinued operations. Income from discontinued operations for 2011 includes $15.1 million gain from the sale of the Bay Course; and income from discontinued operations for 2010 includes $26.7 million gain 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 $312,000 from the June 2011 sale of a portion of the former agriculture processing facilities (Note 2). Income from discontinued agriculture operations for 2010 includes a credit of $14.9 million representing the gain from settlement of the post-retirement health and life insurance plans (Note 9).

        The revenues and income before income taxes for the discontinued operations that were reclassified from continuing operations, were as follows:

	2011		2010
	(in thousands)
Revenues
Golf courses	$	3,375	$	10,086
Retail		4,278		8,813
Total	$	7,653	$	18,899
Income from Discontinued Operations
Golf courses	$	13,762	$	22,672
Retail		462		1,414
Agriculture		193		12,091
Total	$	14,417	$	36,177