Note 5 - Segment Information

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(5) SEGMENT INFORMATION

The Partnership’s two reportable segments, orchards and branded products, are distinct business enterprises that have different products and services, customers and regulatory environment. Both segments are organized on the basis of revenues and assets. The orchards segment derives its revenues from the sale of Wet-In-Shell macadamia nuts, sale of Dry-In-Shell macadamia nuts, sale of macadamia nut kernel to Royal, revenues from contract farming, and orchard lease income. The branded products segment derives its revenues from the sale of branded macadamia nut products and bulk macadamia nut kernel by Royal.

Management evaluates the performance of each segment on the basis of operating income and topline growth. The Partnership accounts for intersegment sales and transfers at cost, and such transactions are eliminated in consolidation.

The following tables summarize each reportable segment’s revenues, operating income or loss, assets and other information as of and for the three and nine months ended September 30, 2015 and 2014. Due to the 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, 2015
	(in thousands)
	Orchards			Branded Products			Consolidation/ Reconciliation			Total
Revenues (1)
External customers	$	1,129		$	3,557	(2)	$	—		$	4,686
Intersegment revenue		2,252			—			(2,252	)		—
Total revenue	$	3,381		$	3,557		$	(2,252	)	$	4,686
Operating income (loss)	$	(27	)	$	8		$	(21	)	$	(40	)
Depreciation and amortization	$	690		$	9		$	—		$	699
Capital expenditures	$	1,422		$	21		$	—		$	1,443
Segment assets	$	69,691		$	4,642		$	(10,575	)	$	63,758

	Three Months Ended September 30, 2014 (in thousands)
	Orchards			Branded Products			Consolidation/ Reconciliation			Total
Revenues (1)
External customers	$	3,918		$	994	(2)	$	—		$	4,912
Intersegment revenue		433			—			(433	)		—
Total revenue	$	4,351		$	994		$	(433	)	$	4,912
Operating income (loss)	$	(581	)	$	(779	)	$	143		$	(1,217	)
Depreciation and amortization	$	740		$	5		$	—		$	745
Capital expenditures	$	949		$	86		$	—		$	1,035
Segment assets	$	55,877		$	3,881		$	(7,612	)	$	52,146

	Nine Months Ended September 30, 2015
	(in thousands)
	Orchards		Branded Products			Consolidation/ Reconciliation			Total
Revenues (1)
External customers	$	4,829	$	8,419	(2)	$	—		$	13,248
Intersegment revenue		8,428		—			(8,428	)		—
Total revenue	$	13,257	$	8,419		$	(8,428	)	$	13,248
Operating income (loss)	$	1,453	$	(705	)	$	(725	)	$	23
Depreciation and amortization	$	1,431	$	47		$	—		$	1,478
Capital expenditures	$	11,053	$	77		$	—		$	11,130
Segment assets	$	69,691	$	4,642		$	(10,575	)	$	63,758

	Nine Months Ended September 30, 2014
	(in thousands)
	Orchards			Branded Products			Consolidation/ Reconciliation			Total
Revenues (1)
External customers	$	6,173		$	4,616	(2)	$	—		$	10,789
Intersegment revenue		3,234			—			(3,234	)		—
Total revenue	$	9,407		$	4,616		$	(3,234	)	$	10,789
Operating income (loss)	$	(775	)	$	(1,909	)	$	320		$	(2,364	)
Depreciation and amortization	$	1,237		$	13		$	—		$	1,250
Capital expenditures	$	2,136		$	129		$	—		$	2,265
Segment assets	$	55,877		$	3,881		$	(7,612	)	$	52,146

(1) All revenues are from sources within the United States of America, Canada and Asia.

(2) Branded products revenue is reported net of slotting fees, trade discounts and promotional allowances.