SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and expenses incurred for which discrete financial information is available that is evaluated regularly by our chief operating decision makers in deciding how to allocate resources and in assessing performance.

Hospitality and Entertainment Operations — Consists of revenues less direct operating expenses, depreciation and amortization relating to our hotel, spa, and food & beverage operations. This segment also reflects the carrying value of such assets and the related financing and operating obligations. As described in Note 19, we sold our Sedona hotels on February 28, 2017, and in accordance with GAAP, have presented the results of operations for such assets in net income (loss) from discontinued operations for the year ended December 31, 2017. However, the Company acquired MacArthur Place in the fourth quarter of 2017 and is actively pursuing other hospitality assets for potential purchase or management as we have decided to continue operations in hospitality and entertainment in 2018 and beyond.

Mortgage and REO – Legacy Portfolio and Other Operations — Consists of the collection, workout and sale of new and legacy mortgage loan investments and REO assets, including financing of such asset sales. This also encompasses the carrying costs of such assets and other related expenses. This segment also reflects the carrying value of such assets and the related financing and operating obligations. This segment has also historically included rental revenue, less direct property operating expenses (maintenance and repairs, real estate taxes, management fees, and other operating expenses), depreciation and amortization from commercial and residential real estate leasing operations, and the carrying value of such assets and the related financing and operating obligations.

Corporate and Other — Consists of our centralized general and administrative and corporate treasury activities. This segment also includes reclassifications and eliminations between the reportable operating segments and reflects the carrying value of corporate fixed assets and the related financing and operating obligations.

The information presented in our reportable segments tables that follow are based in part on internal allocations which involve management judgment. Substantially all revenues recorded are from external customers. There is no material intersegment activity.

Consolidated financial information for our reportable operating segments, excluding assets from discontinued operations, as of December 31, 2018 and 2017 and for the years then ended is summarized as follows (in thousands):



	December 31,
Balance Sheet Items	2018		2017
Total Assets
Mortgage and REO - Legacy portfolio and other operations	$	67,658	$	66,577
Hospitality and entertainment operations	52,753		39,337
Corporate and other	23,228		8,544
Consolidated total	$	143,639	$	114,458

Expenditures for additions to long-lived assets
Mortgage and REO - Legacy portfolio and other operations	$	2,323	$	2,132
Hospitality and entertainment operations	14,353		1,673
Corporate and other	16		479
Consolidated total	$	16,692	$	4,284



	Year Ended December 31, 2018
Income Statement Items	Mortgage and REO Legacy Portfolio and Other Operations			Hospitality and Entertainment Operations			Corporate and Other			Consolidated

Revenues
Mortgage loan income	$	2,588		$	—		$	—		$	2,588
Operating property, management fees, and other	4			6,888			181			7,073
Total revenue	2,592			6,888			181			9,661

Total operating expenses	2,990			12,761			11,214			26,965

Other (income) expense
Gain on disposal of assets, net	(3,938		)	—			—			(3,938		)
Recovery of credit losses	(1,968		)	—			—			(1,968		)
Impairment of real estate owned, net	581			—			—			581
Unrealized loss on derivatives	—			218			—			218
Total other (income) expense	(5,325		)	218			—			(5,107		)

Total costs and expense, net	(2,335		)	12,979			11,214			21,858
Income (loss) from continuing operations, before income taxes	4,927			(6,091		)	(11,033		)	(12,197		)
Net income (loss)	$	4,927		$	(6,091	)	$	(11,033	)	$	(12,197	)



	Year Ended December 31, 2017
Income Statement Items	Mortgage and REO Legacy Portfolio and Other Operations			Hospitality and Entertainment Operations			Corporate and Other			Consolidated

Revenues
Mortgage loan income	$	944		$	—		$	—		$	944
Operating property, management fees, and other	119			4,583			228			4,930
Total revenue	1,063			4,583			228			5,874

Total operating expenses	4,605			5,354			11,833			21,792

Other (income) expense
Gain on disposal of assets, net	(3,683		)	(168		)	—			(3,851		)
Recovery of credit losses	(6,401		)	—			(60		)	(6,461		)
Impairment of real estate owned, net	744			—			—			744
Equity loss from unconsolidated entities, net	239			—			—			239
Total other income	(9,101		)	(168		)	(60		)	(9,329		)

Total costs and expense, net	(4,496		)	5,186			11,773			12,463
Income (loss) from continuing operations, before income taxes	5,559			(603		)	(11,545		)	(6,589		)
(Provision for) benefit from income taxes, continuing operations	(2,167		)	232			3,898			1,963
Net income (loss) from continuing operations	3,392			(371		)	(7,647		)	(4,626		)
Income from discontinued operations	—			5,034						5,034
Provision for income taxes, discontinued operations	—			(1,963		)				(1,963		)
Net income (loss)	$	3,392		$	2,700		$	(7,647	)	$	(1,555	)