LAND, ORCHARDS AND EQUIPMENT

12 Months Ended

Dec. 31, 2013

(6) LAND, ORCHARDS AND EQUIPMENT

Land, orchards and equipment, stated at cost, consisted of the following at December 31, 2013 and 2012 (in thousands):

	2013		2012
Land	$	8,884	$	9,884
Improvements	1,976		1,980
Machinery and equipment	5,425		5,527
Irrigation well and equipment	2,592		2,592
Producing orchards	76,325		76,325
Construction work-in-progress	190		103
Land, orchards and equipment (gross)	95,392		96,411
Less accumulated depreciation and amortization	50,548		48,384
Land, orchards and equipment (net)	$	44,844	$	48,027

Depreciation expense amounted to $2.5 million, $2.4 million, and $2.4 million in 2013, 2012 and 2011, respectively. The Partnership’s interests in trees situated on certain leased macadamia orchard properties are subject to repurchase at the option of the lessors. Such repurchase options grant the lessors the right to purchase all or a portion of these trees after June 30, 2019, at fair market value, as defined in the respective farming lease agreements. If the repurchase options are not exercised prior to expiration of the lease agreements and the lessors do not offer to extend the lease agreements at the then current market lease rates, the lessors are required to repurchase these trees at fair market value at lease expiration. The lessors will be released from their repurchase obligation in the event that the Partnership declines to accept an extension offer from the lessors at fair market lease rates.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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