Note 10 - Reportable Operating Segments

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

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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. Reportable operating 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 services (regulated by the Hawaii Public Utilities Commission) for 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.

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, 2019

and

2018

were as follows:

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	(unaudited)						(unaudited)
	2019			2018			2019			2018
	(in thousands)						(in thousands)
Operating Segment Revenues
Real estate	$	305		$	66		$	671		$	402
Leasing		1,830			1,552			5,226			4,605
Utilities		1,060			900			2,737			2,414
Resort amenities and other		242			292			751			891
Total Operating Segment Revenues	$	3,437		$	2,810		$	9,385		$	8,312
Operating Segment Income (Loss)
Real estate	$	(47	)	$	(1,245	)	$	(202	)	$	(1,418	)
Leasing		1,246			932			3,464			2,701
Utilities		334			307			824			780
Resort amenities and other		23			63			-			78
Total Operating Segment Income	$	1,556		$	57		$	4,086		$	2,141