Business Segments

9 Months Ended

Sep. 30, 2011

Business Segments [Abstract]

Business Segments

Note 3 – Business Segments

            We organize our operations into two reportable business segments within the meaning of FASB ASC 280-10 - Segment Reporting.  Our reportable segments are (1) cinema exhibition and (2) real estate.  The cinema exhibition segment is engaged in the development, ownership, and operation of multiplex cinemas.  The real estate segment is engaged in the development, ownership, and operation of commercial properties.  Incident to our real estate operations we have acquired, and continue to hold, raw land in urban and suburban centers in Australia and New Zealand.

The tables below summarize the results of operations for each of our principal business segments for the three and nine months ended September 30, 2011 and 2010, respectively. Operating expense includes costs associated with the day-to-day operations of the cinemas and the management of rental properties including our live theater assets (dollars in thousands):

Three months ended September 30, 2011	Cinema Exhibition	Real Estate	Intersegment Eliminations	Total
Revenue	$   61,867	$   6,484	$    (1,667)	$  66,684
Operating expense	50,310	2,496	(1,667)	51,139
Depreciation & amortization	2,966	1,126	--	4,092
General & administrative expense	649	130	--	779
Segment operating income	$     7,942	$   2,732	$           --	$ 10,674
Three months ended September 30, 2010	Cinema Exhibition	Real Estate	Intersegment Eliminations	Total
Revenue	$ 55,303	$ 6,695	$ (1,409)	$ 60,589
Operating expense	46,220	2,142	(1,409)	46,953
Depreciation & amortization	2,526	1,136	--	3,662
General & administrative expense	669	216	--	885
Segment operating income	$ 5,888	$ 3,201	$ --	$ 9,089

Reconciliation to net income attributable to Reading International, Inc. shareholders:	2011 Quarter	2010 Quarter
Total segment operating income	$ 10,674	$   9,089
Non-segment:
Depreciation and amortization expense	205	212
General and administrative expense	3,394	3,313
Operating income	7,075	5,564
Interest expense, net	(7,280)	(3,615)
Other income	6	20
Net gain on sale of assets	1	--
Income tax expense	39	(885)
Equity earnings of unconsolidated joint ventures and entities	454	293
Loss from discontinued operations	(5)	1
Net income	290	1,378
Net income attributable to the noncontrolling interest	(253)	(136)
Net income attributable to Reading International, Inc. common shareholders	$       37	$  1,242

Nine months ended September 30, 2011	Cinema Exhibition	Real Estate	Intersegment Eliminations	Total
Revenue	$ 173,577	$ 19,332	$    (5,000)	$ 187,909
Operating expense	143,352	7,371	(5,000)	145,723
Depreciation & amortization	8,869	3,633	--	12,502
General & administrative expense	1,930	524	--	2,454
Segment operating income	$   19,426	$   7,804	$           --	$   27,230

Nine months ended September 30, 2010	Cinema Exhibition	Real Estate	Intersegment Eliminations	Total
Revenue	$ 161,582	$    18,247	$    (4,220)	$ 175,609
Operating expense	134,193	6,519	(4,220)	136,492
Depreciation & amortization	7,635	3,390	--	11,025
Impairment expense	--	2,239	--	2,239
General & administrative expense	1,896	922	--	2,818
Segment operating income	$   17,858	$      5,177	$           --	$   23,035

Reconciliation to net income attributable to Reading International, Inc. shareholders:	2011 Nine Months	2010 Nine Months
Total segment operating income	$  27,230	$  23,035
Non-segment:
Depreciation and amortization expense	216	601
General and administrative expense	10,709	10,202
Operating income	16,305	12,232
Interest expense, net	(16,616)	(10,779)
Other income (expense)	79	(690)
Net gain (loss) on sale of assets	(66)	350
Income tax benefit (expense)	13,177	(13,669)
Equity earnings of unconsolidated joint ventures and entities	1,087	910
Income from discontinued operations	35	31
Gain on sale of discontinued operation	1,656	--
Net income (loss)	15,657	(11,615)
Net income attributable to the noncontrolling interest	(667)	(505)
Net income (loss) attributable to Reading International, Inc. common shareholders	$  14,990	$ (12,120)