Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of financial measures for each segment based on which performance is evaluated

The Company evaluates performance based on the following financial measures for each segment. The Company's segment information is as follows ($ in thousands):



	Real Estate Finance			Net Lease			Operating Properties			Land and Development			Corporate/Other⁽¹⁾			Company Total
Year Ended December 31, 2017
Operating lease income	$	—		$	123,685		$	63,159		$	840		$	—		$	187,684
Interest income	106,548			—			—			—			—			106,548
Other income	2,633			2,603			49,641			126,259			6,955			188,091
Land development revenue	—			—			—			196,879			—			196,879
Earnings (loss) from equity method investments	—			5,086			(772		)	7,292			1,409			13,015
Income from discontinued operations	—			4,939			—			—			—			4,939
Gain from discontinued operations	—			123,418			—			—			—			123,418
Income from sales of real estate	—			87,512			4,537			—			—			92,049
Total revenue and other earnings	109,181			347,243			116,565			331,270			8,364			912,623
Real estate expense	—			(16,742		)	(89,725		)	(41,150		)	—			(147,617		)
Land development cost of sales	—			—			—			(180,916		)	—			(180,916		)
Other expense	(1,413		)	—			—			—			(19,541		)	(20,954		)
Allocated interest expense	(40,359		)	(53,710		)	(20,171		)	(28,033		)	(52,413		)	(194,686		)
Allocated general and administrative⁽²⁾	(15,223		)	(19,563		)	(8,075		)	(16,483		)	(20,726		)	(80,070		)
Segment profit (loss) ⁽³⁾	$	52,186		$	257,228		$	(1,406	)	$	64,688		$	(84,316	)	$	288,380
Other significant non-cash items:
Recovery of loan losses	$	(5,828	)	$	—		$	—		$	—		$	—		$	(5,828	)
Impairment of assets	—			5,486			6,358			20,535			—			32,379
Depreciation and amortization	—			28,132			17,684			1,896			1,321			49,033
Capitalized expenditures	—			4,838			35,754			125,744			—			166,336



	Real Estate Finance			Net Lease			Operating Properties			Land and Development			Corporate/Other⁽¹⁾			Company Total
Year Ended December 31, 2016
Operating lease income	$	—		$	126,164		$	64,593		$	423		$	—		$	191,180
Interest income	129,153			—			—			—			—			129,153
Other income	4,658			1,632			33,216			3,170			3,838			46,514
Land development revenue	—			—			—			88,340			—			88,340
Earnings (loss) from equity method investments	—			3,567			33,863			30,012			9,907			77,349
Income from discontinued operations	—			18,270			—			—			—			18,270
Income from sales of real estate	—			21,138			75,357			8,801			—			105,296
Total revenue and other earnings	133,811			170,771			207,029			130,746			13,745			656,102
Real estate expense	—			(18,158		)	(82,401		)	(36,963		)	—			(137,522		)
Land development cost of sales	—			—			—			(62,007		)	—			(62,007		)
Other expense	(2,719		)	—			—			—			(3,164		)	(5,883		)
Allocated interest expense	(57,787		)	(65,880		)	(23,156		)	(34,888		)	(39,687		)	(221,398		)
Allocated general and administrative⁽²⁾	(15,311		)	(17,585		)	(6,574		)	(13,693		)	(19,975		)	(73,138		)
Segment profit (loss) ⁽³⁾	$	57,994		$	69,148		$	94,898		$	(16,805	)	$	(49,081	)	$	156,154
Other significant non-cash items:
Recovery of loan losses	$	(12,514	)	$	—		$	—		$	—		$	—		$	(12,514	)
Impairment of assets	—			4,829			5,855			3,800			—			14,484
Depreciation and amortization	—			31,380			17,887			1,296			1,097			51,660
Capitalized expenditures	—			3,667			56,784			109,548			—			169,999



	Real Estate Finance			Net Lease			Operating Properties			Land and Development			Corporate/Other⁽¹⁾			Company Total
Year Ended December 31, 2015
Operating lease income	$	—		$	132,968		$	77,454		$	785		$	—		$	211,207
Interest income	134,687			—			—			—			—			134,687
Other income	9,737			350			34,637			1,219			3,981			49,924
Land development revenue	—			—			—			100,216			—			100,216
Earnings (loss) from equity method investments	—			5,221			1,663			16,683			8,586			32,153
Income from discontinued operations	—			15,077			—			—			—			15,077
Income from sales of real estate	—			40,082			53,734			—			—			93,816
Total revenue and other earnings	144,424			193,698			167,488			118,903			12,567			637,080
Real estate expense	—			(21,614		)	(95,888		)	(29,007		)	—			(146,509		)
Land development cost of sales	—			—			—			(67,382		)	—			(67,382		)
Other expense	(2,291		)	—			—			—			(4,083		)	(6,374		)
Allocated interest expense	(57,109		)	(66,504		)	(28,014		)	(32,087		)	(40,925		)	(224,639		)
Allocated general and administrative⁽²⁾	(13,128		)	(15,569		)	(6,988		)	(11,488		)	(22,091		)	(69,264		)
Segment profit (loss) ⁽³⁾	$	71,896		$	90,011		$	36,598		$	(21,061	)	$	(54,532	)	$	122,912
Other significant non-cash items:
Provision for loan losses	$	36,567		$	—		$	—		$	—		$	—		$	36,567
Impairment of assets	—			—			5,935			4,589			—			10,524
Depreciation and amortization	—			34,936			24,548			1,422			1,139			62,045
Capitalized expenditures	—			4,195			84,103			94,971			—			183,269

As of December 31, 2017
Real estate
Real estate, net	$	—		$	815,783		$	466,248		$	—		$	—		$	1,282,031
Real estate available and held for sale	—			—			68,588			—			—			68,588
Total real estate	—			815,783			534,836			—			—			1,350,619
Land and development, net	—			—			—			860,311			—			860,311
Loans receivable and other lending investments, net	1,300,655			—			—			—			—			1,300,655
Other investments	—			205,007			38,761			63,855			13,618			321,241
Total portfolio assets	$	1,300,655		$	1,020,790		$	573,597		$	924,166		$	13,618		3,832,826
Cash and other assets																898,252
Total assets																$	4,731,078

As of December 31, 2016
Real estate
Real estate, net	$	—		$	911,112		$	476,162		$	—		$	—		$	1,387,274
Real estate available and held for sale	—			155,051			82,480			—			—			237,531
Total real estate	—			1,066,163			558,642			—			—			1,624,805
Land and development, net	—			—			—			945,565			—			945,565
Loans receivable and other lending investments, net	1,450,439			—			—			—			—			1,450,439
Other investments	—			92,669			3,583			84,804			33,350			214,406
Total portfolio assets	$	1,450,439		$	1,158,832		$	562,225		$	1,030,369		$	33,350		4,235,215
Cash and other assets																590,299
Total assets																$	4,825,514

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(1)	Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not included in the other reportable segments above.


(2)	General and administrative excludes stock-based compensation expense of $18.8 million, $10.9 million and $12.0 million for the years ended December 31, 2017, 2016 and 2015, respectively.


(3)	The following is a reconciliation of segment profit to net income (loss) ($ in thousands):



	For the Years Ended December 31,
	2017			2016			2015
Segment profit	$	288,380		$	156,154		$	122,912
Less: Recovery of (provision for) loan losses	5,828			12,514			(36,567		)
Less: Impairment of assets	(32,379		)	(14,484		)	(10,524		)
Less: Depreciation and amortization	(49,033		)	(51,660		)	(62,045		)
Less: Stock-based compensation expense	(18,812		)	(10,889		)	(12,013		)
Less: Income tax benefit (expense)	948			10,166			(7,639		)
Less: Loss on early extinguishment of debt, net	(14,724		)	(1,619		)	(281		)
Net income (loss)	$	180,208		$	100,182		$	(6,157	)

Reconciliation of segment profit to income (loss) from continuing operations

The following is a reconciliation of segment profit to net income (loss) ($ in thousands):



	For the Years Ended December 31,
	2017			2016			2015
Segment profit	$	288,380		$	156,154		$	122,912
Less: Recovery of (provision for) loan losses	5,828			12,514			(36,567		)
Less: Impairment of assets	(32,379		)	(14,484		)	(10,524		)
Less: Depreciation and amortization	(49,033		)	(51,660		)	(62,045		)
Less: Stock-based compensation expense	(18,812		)	(10,889		)	(12,013		)
Less: Income tax benefit (expense)	948			10,166			(7,639		)
Less: Loss on early extinguishment of debt, net	(14,724		)	(1,619		)	(281		)
Net income (loss)	$	180,208		$	100,182		$	(6,157	)