Note 4 - Segment Information

9 Months Ended

Sep. 30, 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, employees and regulatory environments. 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 revenue growth. The Partnership accounts for intersegment sales and transfers at a predetermined, fixed price based on cost plus a mark-up, 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, 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 September 30, 2016
	(in thousands)
	Orchards			Branded Products			Eliminations/ Reconciliation			Total
Revenues (1)
External customers	$	727		$	6,839	(2)	$	-		$	7,566
Intersegment revenue		389			-			(389	)		-
Total revenue	$	1,116		$	6,839		$	(389	)	$	7,566
Operating income (loss)	$	(518	)	$	(150	)	$	793		$	125
Depreciation and amortization	$	745		$	23		$	-		$	768
Capital expenditures	$	31		$	-		$	-		$	31
Segment assets	$	73,439		$	8,257		$	(17,669	)	$	64,027

	Three Months Ended September 30, 2015
	(in thousands)
	Orchards			Branded Products			Eliminations/ 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)	$	(2	)	$	8		$	(21	)	$	(15	)
Depreciation and amortization	$	725		$	9		$	-		$	734
Capital expenditures	$	1,422		$	21		$	-		$	1,443
Segment assets	$	69,471		$	4,642		$	(10,575	)	$	63,538

	Nine Months Ended September 30, 2016
	(in thousands)
	Orchards		Branded Products			Eliminations/ Reconciliation			Total
Revenues (1)
External customers	$	3,398	$	16,022	(2)	$	-		$	19,420
Intersegment revenue		10,658		-			(10,658	)		-
Total revenue	$	14,056	$	16,022		$	(10,658	)	$	19,420
Operating income (loss)	$	1,541	$	(1,558	)	$	(479	)	$	(496	)
Depreciation and amortization	$	2,239	$	68		$	-		$	2,307
Capital expenditures	$	108	$	59		$	-		$	167
Segment assets	$	73,439	$	8,257		$	(17,669	)	$	64,027

	Nine Months Ended September 30, 2015
	(in thousands)
	Orchards		Branded Products			Eliminations/ 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)	$	1,492	$	(705	)	$	(725	)	$	62
Depreciation and amortization	$	1,975	$	47		$	-		$	2,022
Capital expenditures	$	11,053	$	77		$	-		$	11,130
Segment assets	$	69,471	$	4,642		$	(10,575	)	$	63,538

(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.