| Disclosures About Reportable Segments |
Note 7. Disclosures about reportable segments
Alico has six reportable segments: Bowen, Citrus Groves, Sugarcane, Cattle, Real Estate and Land leasing and rentals. All of the Company's operations are located in Florida. Intersegment sales and transfers are accounted by the Company as if the sales or transfers were to third parties at current market prices.
Agricultural Segments:
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Bowen operations include supply chain management services for both Alico and other citrus growers. Bowen's operations also include the purchase and resale of citrus fruit. |
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Citrus Grove operations cultivate citrus trees for the production of citrus fruit for delivery to fresh and processed citrus markets. |
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Sugarcane operations cultivate sugarcane for sale to a sugar processor. |
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Cattle operations raise replacement heifers and produce beef cattle for sale. |
Goods and services produced by these segments are sold to wholesalers and processors in the United States who prepare the products for consumption.
Non-agricultural Segments
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The Real Estate segment, operated on behalf of Alico by ALDI, is engaged in the planning and strategic positioning of all Company owned land, which includes seeking entitlement of the land assets in order to preserve rights to develop the property in the future and negotiating and/or renegotiating sales contracts. |
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The Land leasing and rental segment leases land to others on a tenant-at-will basis for grazing, farming, oil and mineral exploration and recreational uses. |
The accounting policies of the segments are the same as those described in the Summary of Significant Accounting Policies herein and in the Annual Report on Form 10-K. Total revenues represent sales to unaffiliated customers, as reported in the Company's Consolidated Statements of Operations. All intercompany transactions have been eliminated.
The Company's reportable segments are strategic business units that offer different products and services. They are managed separately and decisions about allocations of resources are determined by management based on these strategic business units. The Company evaluates segment's performance based on direct margins from operations before general and administrative costs, interest expense and income taxes not including nonrecurring gains and losses.
The following table summarizes the performance of the Company's segments and the related depreciation expense for the three month periods ended December 31, 2011 and 2010, and the related assets as of December 31, 2011 and September 30, 2011:
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Three months ended
December 31, |
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2011 |
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2010 |
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Revenues (from external customers except as noted) |
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|
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Bowen |
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$ |
10,506 |
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$ |
6,738 |
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Intersegment sales through Bowen |
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|
1,833 |
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|
|
1,110 |
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Citrus Groves |
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|
8,408 |
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|
5,232 |
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Sugarcane |
|
|
6,087 |
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|
|
3,713 |
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Cattle |
|
|
222 |
|
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|
157 |
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Real estate |
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— |
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— |
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Land leasing and rentals |
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660 |
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|
606 |
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|
|
|
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|
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Revenue from segments |
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27,716 |
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17,556 |
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Other operations |
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193 |
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|
109 |
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Less: intersegment revenues eliminated |
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(1,833 |
) |
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(1,110 |
) |
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Total operating revenue |
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$ |
26,076 |
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$ |
16,555 |
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Operating expenses |
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Bowen |
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$ |
10,195 |
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$ |
6,563 |
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Intersegment sales through Bowen |
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1,833 |
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|
1,110 |
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Citrus Groves |
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5,157 |
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|
3,555 |
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Sugarcane |
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4,639 |
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|
3,304 |
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Cattle |
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150 |
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|
99 |
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Real estate |
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125 |
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|
150 |
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Land leasing and rentals |
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254 |
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|
315 |
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Segment operating expenses |
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22,353 |
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|
15,096 |
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Other operations |
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13 |
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|
76 |
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Less: intersegment expenses eliminated |
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(1,833 |
) |
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(1,110 |
) |
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|
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Total operating expenses |
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$ |
20,533 |
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$ |
14,062 |
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Gross profit (loss): |
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Bowen |
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$ |
311 |
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$ |
175 |
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Citrus Groves |
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3,251 |
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1,677 |
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Sugarcane |
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1,448 |
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|
409 |
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Cattle |
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72 |
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58 |
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Real estate |
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(125 |
) |
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(150 |
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Land leasing and rentals |
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406 |
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|
291 |
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Gross profit from segments |
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5,363 |
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|
2,460 |
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Other operations |
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|
180 |
|
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|
33 |
|
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|
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Gross profit |
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$ |
5,543 |
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$ |
2,493 |
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Depreciation, depletion and amortization: |
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Bowen |
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$ |
44 |
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$ |
50 |
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Citrus Groves |
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521 |
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|
492 |
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Sugarcane |
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811 |
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|
489 |
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Cattle |
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232 |
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|
262 |
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Land leasing and rentals |
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|
107 |
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|
45 |
|
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|
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|
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Total segment depreciation and amortization |
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1,715 |
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|
1,338 |
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Other depreciation, depletion and amortization |
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|
181 |
|
|
|
288 |
|
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|
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|
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Total depreciation, depletion and amortization |
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$ |
1,896 |
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$ |
1,626 |
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|
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$000,000 |
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|
$000,000 |
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December 31,
2011 |
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September 30,
2011 |
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Total assets: |
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Bowen |
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$ |
5,416 |
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$ |
2,888 |
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Citrus Groves |
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48,982 |
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|
45,554 |
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Sugarcane |
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54,281 |
|
|
|
53,213 |
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Cattle |
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|
6,896 |
|
|
|
6,241 |
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Real Estate |
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|
12,984 |
|
|
|
12,932 |
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Land leasing and rentals |
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5,417 |
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|
5,524 |
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Segment assets |
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133,976 |
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126,352 |
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Other corporate assets |
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52,919 |
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|
53,683 |
|
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Total assets |
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$ |
186,895 |
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$ |
180,035 |
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