SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2011

SEGMENT INFORMATION

SEGMENT INFORMATION

(6) SEGMENT INFORMATION

The Partnership has two reportable segments, the owned-orchard segment and the farming segment, which are organized on the basis of revenues and assets.  The owned-orchard segment derives its revenues from the sale of macadamia nuts grown in orchards owned or leased by the Partnership.  The farming segment derives its revenues from the farming of macadamia orchards owned by other growers.  The Partnership also farms the orchards it owns and leases.

Management evaluates the performance of each segment on the basis of operating income.  The Partnership accounts for intersegment sales and transfers at cost.  Such intersegment sales and transfers are eliminated in consolidation. The Partnership’s reportable segments are distinct business enterprises that offer different products or services.  Revenues from the owned-orchard segment are subject to nut purchase contracts and tend to vary from year to year due to changes in the prices paid under its various nut contracts.  The farming segment’s revenues are based on farming contracts that generate a farming profit based on a pass through of farming cost plus a fee which is a percentage of farming cost or a fixed amount per acre and tend to be less variable than revenues from the owned-orchard segment.

The following tables summarize each reportable segment’s revenues, operating income (loss), assets and other information as of and for the three and nine-month periods ended September 30, 2011 and 2010.  Due to seasonality of crop patterns and the timing of nut purchase contract fulfillment, interim results are not necessarily indicative of annual performance.

	Three months ended September 30, (in thousands)						Nine months ended September 30, (in thousands)
	2011			2010			2011			2010
Revenues:
Owned orchards	$	5,357		$	4,087		$	7,688		$	5,259
Farming	4,005			3,251			6,734			6,619
Intersegment elimination (all farming)	(3,354		)	(2,636		)	(5,543		)	(4,202		)
Total	$	6,008		$	4,702		$	8,879		$	7,676
Operating income (loss):
Owned orchards	$	218		$	(110	)	$	95		$	(583	)
Farming	44			46			103			192
Total	$	262		$	(64	)	$	198		$	(391	)
Depreciation:
Owned orchards	$	766		$	707		$	986		$	824
Farming	98			85			295			186
Total	$	864		$	792		$	1,281		$	1,010
Expenditures for property and equipment:
Owned orchards	$	1		$	—		$	48		$	79
Owned orchards - IASCO	—			11,668			—			$	11,668
Farming	—			—			14			—
Total	$	1		$	11,668		$	62		$	11,747
Segment assets:
Owned orchards							$	51,059		$	53,780
Farming							8,038			7,181
Total							$	59,097		$	60,961

All revenues are from sources within the United States of America.