Business Segments

6 Months Ended

Jun. 30, 2012

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, New Zealand, and the United States.

     The tables below summarize the results of operations for each of our principal business segments for the three and six months ended June 30, 2012 and 2011, 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 June 30, 2012	Cinema Exhibition		Real Estate		Intersegment Eliminations			Total
Revenue	$	57,988	$	7,038	$	(1,882	)	$	63,144
Operating expense		48,347		2,645		(1,882	)		49,110
Depreciation & amortization		2,733		1,177		-			3,910
General & administrative expense		782		146		-			928
Segment operating income	$	6,126	$	3,070	$	-		$	9,196

Three Months Ended June 30, 2011	Cinema Exhibition		Real Estate		Intersegment Eliminations			Total
Revenue	$	62,236	$	6,604	$	(1,667	)	$	67,173
Operating expense		49,901		2,594		(1,667	)		50,828
Depreciation & amortization		3,000		1,285		-			4,285
General & administrative expense		669		207		-			876
Segment operating income	$	8,666	$	2,518	$	-		$	11,184

Reconciliation to net income attributable to Reading International, Inc. shareholders:	2012 Quarter			2011 Quarter
Total segment operating income	$	9,196		$	11,184
Non-segment:
Depreciation and amortization expense		97			7
General and administrative expense		3,398			3,880
Operating income		5,701			7,297
Interest expense, net		(5,683	)		(5,406	)
Other income		68			91
Loss on sale of assets		(2	)		(68	)
Income tax benefit (expense)		(259	)		13,774
Equity earnings of unconsolidated joint ventures and entities		399			269
Income from discontinued operations		-			1,656
Net income	$	224		$	17,613
Net (income) loss attributable to noncontrolling interests		15			(181	)
Net income attributable to Reading International, Inc. common shareholders	$	239		$	17,432

Six Months Ended June 30, 2012	Cinema Exhibition		Real Estate		Intersegment Eliminations			Total
Revenue	$	115,390	$	14,171	$	(3,765	)	$	125,796
Operating expense		96,563		5,441		(3,765	)		98,239
Depreciation & amortization		5,563		2,405		-			7,968
General & administrative expense		1,484		325		-			1,809
Segment operating income	$	11,780	$	6,000	$	-		$	17,780

Six Months Ended June 30, 2011	Cinema Exhibition		Real Estate		Intersegment Eliminations			Total
Revenue	$	111,710	$	13,040	$	(3,334	)	$	121,416
Operating expense		93,043		5,026		(3,334	)		94,735
Depreciation & amortization		5,904		2,507		-			8,411
General & administrative expense		1,280		394		-			1,674
Segment operating income	$	11,483	$	5,113	$	-		$	16,596

Reconciliation to net income (loss) attributable to Reading International, Inc. shareholders:	2012 Six Months			2011 Six Months
Total segment operating income	$	17,780		$	16,596
Non-segment:
Depreciation and amortization expense		236			10
General and administrative expense		6,937			7,316
Operating income		10,607			9,270
Interest expense, net		(9,443	)		(9,337	)
Other income		23			74
Loss on sale of assets		(2	)		(68	)
Income tax benefit (expense)		(1,884	)		13,138
Equity earnings of unconsolidated joint ventures and entities		812			633
Income from discontinued operations		-			1,656
Net income	$	113		$	15,366
Net income attributable to noncontrolling interests		(116	)		(414	)
Net income (loss) attributable to Reading International, Inc. common shareholders	$	(3	)	$	14,952