| Business Segments And Geographic Area Information |
Note 22 – Business Segments and Geographic Area Information
During 2010, we changed our reporting for intercompany property rent where our cinema operations were substantially the only tenant of such property by eliminating the intersegment revenue and expense relating to the intercompany rent, and transferring the third party lease costs from the real estate segment to the cinema exhibition segment. This change in management's structure of the reportable segments commenced on January 1, 2010, such changes to segment reporting are reflected in the segment results for 2010 and 2009, respectively. The retroactive presentation in 2009 segment results decreased intersegment revenue and expense for the intercompany rent by $4.4 million and transferred the third party lease costs from the real estate segment to the cinema exhibition segment. The overall results of these changes decreased real estate segment revenue and expense by $4.4 million for the year ended December 31, 2009. This change results in a reduction of real estate operating expense and an increase of cinema operating expense of $4.4 million on our Consolidated Statements of Operations for the year ended December 31, 2009.
The table below sets forth certain information concerning our cinema operations and our real estate operations (which includes information relating to both our real estate development, retail rental and live theater rental activities) for the three years ended December 31, 2011 (dollars in thousands):
| |
|
|
|
|
|
|
|
|
|
| |
|
Cinema |
|
Real |
|
Intersegment |
|
|
|
| Year Ended December 31, 2011 |
|
Exhibition |
|
Estate |
|
Eliminations |
|
|
Total |
| Revenue |
$ |
225,849 |
$ |
27,388 |
$ |
(7,432 |
) |
$ |
245,805 |
| Operating Expense |
|
189,647 |
|
10,419 |
|
(7,432 |
) |
|
192,634 |
| Depreciation & amortization |
|
11,842 |
|
4,809 |
|
- |
|
|
16,651 |
| Impairment expense |
|
- |
|
369 |
|
- |
|
|
369 |
| General & administrative expense |
|
2,740 |
|
646 |
|
- |
|
|
3,386 |
| Segment operating income |
$ |
21,620 |
$ |
11,145 |
$ |
- |
|
$ |
32,765 |
| |
|
|
|
|
|
|
|
|
|
| |
|
Cinema |
|
Real |
|
Intersegment |
|
|
|
| Year Ended December 31, 2010 |
|
Exhibition |
|
Estate |
|
Eliminations |
|
|
Total |
| Revenue |
$ |
211,073 |
$ |
25,512 |
$ |
(6,466 |
) |
$ |
230,119 |
| Operating expense |
|
178,261 |
|
9,221 |
|
(6,466 |
) |
|
181,016 |
| Depreciation & amortization |
|
10,559 |
|
4,640 |
|
- |
|
|
15,199 |
| Impairment expense |
|
- |
|
2,239 |
|
- |
|
|
2,239 |
| General & administrative expense |
|
2,880 |
|
1,220 |
|
- |
|
|
4,100 |
| Segment operating income |
$ |
19,373 |
$ |
8,192 |
$ |
- |
|
$ |
27,565 |
| |
| |
|
Cinema |
|
Real |
|
Intersegment |
|
|
|
| Year Ended December 31, 2009 |
|
Exhibition |
|
Estate |
|
Eliminations |
|
|
Total |
| Revenue |
$ |
201,388 |
$ |
20,867 |
$ |
(5,241 |
) |
$ |
217,014 |
| Operating expense |
|
165,708 |
|
7,591 |
|
(5,241 |
) |
|
168,058 |
| Depreciation & amortization |
|
10,816 |
|
3,686 |
|
- |
|
|
14,502 |
| Loss on transfer of real estate held for sale to |
|
|
|
|
|
|
|
|
|
| continuing operations |
|
- |
|
549 |
|
- |
|
|
549 |
| Impairment expense |
|
- |
|
3,217 |
|
- |
|
|
3,217 |
| Contractual commitment loss |
|
- |
|
1,092 |
|
- |
|
|
1,092 |
| General & administrative expense |
|
2,645 |
|
1,063 |
|
- |
|
|
3,708 |
| Segment operating income |
$ |
22,219 |
$ |
3,669 |
$ |
- |
|
$ |
25,888 |
| |
|
|
|
|
|
|
|
|
|
| Reconciliation to net income attributable to Reading |
|
|
|
|
|
|
|
|
|
| International, Inc. shareholders: |
|
2011 |
|
|
2010 |
|
|
2009 |
|
| Total segment operating income |
$ |
32,765 |
|
$ |
27,565 |
|
$ |
25,888 |
|
| Non-segment: |
|
|
|
|
|
|
|
|
|
| Depreciation & amortization expense |
|
309 |
|
|
715 |
|
|
666 |
|
| General & administrative expense |
|
14,046 |
|
|
13,684 |
|
|
13,851 |
|
| Other operating income |
|
- |
|
|
- |
|
|
(2,551 |
) |
| Operating income |
|
18,410 |
|
|
13,166 |
|
|
13,922 |
|
| Interest expense, net |
|
(21,038 |
) |
|
(12,286 |
) |
|
(14,572 |
) |
| Other income (expense) |
|
1,157 |
|
|
(347 |
) |
|
(2,013 |
) |
| Gain (loss) on sale of assets |
|
(67 |
) |
|
352 |
|
|
(2 |
) |
| Income tax benefit (expense) |
|
12,330 |
|
|
(14,264 |
) |
|
(1,952 |
) |
| Equity earnings (loss) of unconsolidated joint ventures and |
|
|
|
|
|
|
|
|
|
| entities |
|
(1,552 |
) |
|
1,345 |
|
|
117 |
|
| Income from discontinued operations |
|
1,656 |
|
|
- |
|
|
- |
|
| Gain on extinguishment of debt |
|
- |
|
|
- |
|
|
10,714 |
|
| Gain on sale of unconsolidated joint venture |
|
- |
|
|
- |
|
|
268 |
|
| Net income (loss) |
$ |
10,896 |
|
$ |
(12,034 |
) |
$ |
6,482 |
|
| Net income attributable to noncontrolling interests |
|
(940 |
) |
|
(616 |
) |
|
(388 |
) |
| Net income (loss) attributable to Reading International, Inc. |
|
|
|
|
|
|
|
|
|
| common shareholders |
$ |
9,956 |
|
$ |
(12,650 |
) |
$ |
6,094 |
|
| |
|
|
|
|
| Summary of assets: |
|
2011 |
|
2010 |
| Segment assets |
$ |
414,608 |
$ |
406,569 |
| Corporate assets |
|
16,156 |
|
23,780 |
| Total Assets |
$ |
430,764 |
$ |
430,349 |
| |
|
|
|
|
|
|
| Summary of capital expenditures: |
|
2011 |
|
2010 |
|
2009 |
| Segment capital expenditures |
$ |
8,419 |
$ |
18,942 |
$ |
5,584 |
| Corporate capital expenditures |
|
957 |
|
429 |
|
102 |
| Total capital expenditures |
$ |
9,376 |
$ |
19,371 |
$ |
5,686 |
The cinema results shown above include revenue and operating expense directly linked to our cinema assets. The real estate results include rental income from our properties and live theaters and operating expense directly linked to our property assets.
The following table sets forth the book value of our property and equipment by geographical area (dollars in thousands):
| |
|
|
|
|
| |
|
December 31, |
| |
|
2011 |
|
2010 |
| Australia |
$ |
117,911 |
$ |
121,403 |
| New Zealand |
|
33,322 |
|
33,809 |
| United States |
|
64,195 |
|
65,038 |
| Total property and equipment |
$ |
215,428 |
$ |
220,250 |
The following table sets forth our revenue by geographical area (dollars in thousands):
| |
|
|
|
|
|
|
| |
|
|
|
December 31, |
|
|
| |
|
2011 |
|
2010 |
|
2009 |
| Australia |
$ |
111,568 |
$ |
94,215 |
$ |
80,848 |
| New Zealand |
|
22,247 |
|
25,338 |
|
22,776 |
| United States |
|
111,990 |
|
110,566 |
|
113,390 |
| Total revenue |
$ |
245,805 |
$ |
230,119 |
$ |
217,014 | |