Note 4 - Segment Information

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(4) 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 a predetermined rate that includes cost plus a margin, 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 months ended March 31, 2016 and 2015. 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 March 31, 2016 (in thousands)
	Orchards		Branded Products			Eliminations/ Reconciliation			Total
Revenues (1)
External customers	$	1,882	$	3,884	(2)	$	-		$	5,766
Intersegment revenue		4,715		-			(4,715	)		-
Total revenue	$	6,597	$	3,884		$	(4,715	)	$	5,766
Operating income (loss)	$	643	$	(764	)	$	(297	)	$	(418	)
Depreciation and amortization	$	763	$	21		$	-		$	784
Capital expenditures	$	71	$	45		$	-		$	116
Segment assets	$	79,783	$	16,114		$	(29,816	)	$	66,081

	Three Months Ended March 31, 2015 (in thousands)
	Orchards		Branded Products			Eliminations/ Reconciliation			Total
Revenues (1)
External customers	$	2,877	$	591	(2)	$	-		$	3,468
Intersegment revenue		2,445		-			(2,445	)		-
Total revenue	$	5,322	$	591		$	(2,445	)	$	3,468
Operating income (loss)	$	809	$	(683	)	$	(351	)	$	(225	)
Depreciation and amortization	$	611	$	10		$	-		$	621
Capital expenditures	$	423	$	11		$	-		$	434
Segment assets	$	68,283	$	9,852		$	(21,809	)	$	56,326

(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.