Operating Segment Information

9 Months Ended

Sep. 30, 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 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 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 include 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 and nine months ended September 30, 2013 and 2012 were as follows:

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2013			2012			2013			2012
	(in thousands)
Operating Revenues
Real Estate	$	206		$	90		$	397		$	2,153
Leasing	1,315			1,413			3,838			4,394
Utilities	1,010			1,085			2,793			2,628
Resort Amenities	300			1,031			2,255			3,171
Other	3			3			11			38
Total Operating Revenues	$	2,834		$	3,622		$	9,294		$	12,384
Operating Loss (1)
Real Estate	$	(605	)	$	(440	)	$	(1,552	)	$	272
Leasing	80			81			(26		)	471
Utilities	269			131			652			472
Resort Amenities	18			(6		)	—			(65		)
Other (2)	(672		)	(691		)	(2,050		)	(2,250		)
Total Operating Loss	(910		)	(925		)	(2,976		)	(1,100		)
Interest Expense, net	(641		)	(759		)	(1,841		)	(1,859		)
Loss from Continuing Operations	(1,551		)	(1,684		)	(4,817		)	(2,959		)
Income (Loss) from Discontinued Operations (Note 6)	(13		)	68			2,269			65
Net Loss	$	(1,564	)	$	(1,616	)	$	(2,548	)	$	(2,894	)

(1)  Includes allocations of general and administrative expenses.

(2) Consists primarily of unallocated general and administrative, pension, and other expenses.