Operating Segment Information

9 Months Ended

Sep. 30, 2011

Operating Segment Information

Operating Segment Information

13.  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 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 Kapalua Resort.

· Leasing primarily includes revenues and expense from our real property leasing activities, license fees and royalties for the use of certain of our trademarks and brand names by third parties, and the cost of maintaining our 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 and parts of West Maui.

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

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2011			2010			2011			2010
	(in thousands)
Operating Revenues
Real Estate	$	75		$	210		$	695		$	2,637
Leasing	1,380			1,385			3,827			3,791
Utilities	935			959			2,651			2,442
Resort Amenities	909			931			2,819			2,701
Other	72			365			1,039			1,561
Total Operating Revenues	$	3,371		$	3,850		$	11,031		$	13,132
Operating Profit (Loss) (1)
Real Estate	$	(206	)	$	(995	)	$	(712	)	$	(710	)
Leasing	(83		)	(459		)	(721		)	(1,090		)
Utilities	96			27			(174		)	(48		)
Resort Amenities	(89		)	(72		)	(351		)	(76		)
Other	(521		)	(2,162		)	(3,021		)	(4,990		)
Total Operating Loss	(803		)	(3,661		)	(4,979		)	(6,914		)
Interest Expense, net	(624		)	(1,791		)	(1,758		)	(6,502		)
Income Tax Benefit	67			261			67			176
Loss from Continuing Operations	(1,360		)	(5,191		)	(6,670		)	(13,240		)
Income from Discontinued Operations (Note 6)	21			25,218			15,294			25,975
Net Income (Loss)	$	(1,339	)	$	20,027		$	8,624		$	12,735

(1) Operating profit (loss) for the operating segments include allocations of corporate general, administrative and marketing expense.  Unallocated general, administrative and marketing expense is included in other operating loss.