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.

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.

As of and for the three and nine months ended September 30, 2019 and 2018, the Company’s reportable segments consisted of the following:

Hospitality and Entertainment Operations — Consists of revenues and 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.

Mortgage and REO - Legacy Portfolio and Other Operations — Consists of the collection, workout and sale of new and legacy loans and REO assets, including financing of such asset sales, as well as the operating expenses (if any), carrying costs and other related expenses of such assets. This segment also includes operating properties that do not represent a strategic operating objective of the Company, such as Broadway Tower, and their rental revenue and tenant recoveries less direct property operating expenses (maintenance and repairs, real estate taxes, management fees, and other operating expenses), depreciation and amortization from commercial 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.

Condensed consolidated financial information for our reportable operating segments as of September 30, 2019 and December 31, 2018 and for the three and nine months ended September 30, 2019 and 2018 is summarized as follows (in thousands):



	September 30,		December 31,
Balance Sheet Items	2019		2018
Total Assets
Mortgage and REO Legacy portfolio and other operations	$	80,986	$	67,658
Hospitality and entertainment operations	66,931		52,753
Corporate and other	4,642		23,228
Consolidated total	$	152,559	$	143,639

	Nine Months Ended September 30,
Cash Flow Items	2019		2018
Expenditures for additions to long-lived assets
Mortgage and REO Legacy portfolio and other operations	$	1,071	$	2,321
Hospitality and entertainment operations	12,288		4,887
Corporate and other	23		23
Consolidated total	$	13,382	$	7,231



	Three Months Ended September 30, 2019
Income Statement Items	Mortgage and REO Legacy Portfolio and Other Operations			Hospitality and Entertainment Operations			Corporate and Other			Consolidated

Revenues
Operating property revenue	$	1,157		$	2,925		$	—		$	4,082
Mortgage loan income	340			—			—			340
Management fees, investment and other income	6			—			123			129
Total revenue	1,503			2,925			123			4,551

Total operating expenses	1,863			5,136			2,730			9,729

Other (income) expense
Gain on disposal of assets	(223		)	—			—			(223		)
Provision for (recovery of) credit losses, net	2,598			—			—			2,598
Unrealized loss on derivatives	—			39			—			39
Total other (income) expense	2,375			39			—			2,414

Total costs and expense, net	4,238			5,175			2,730			12,143
Loss before income taxes	(2,735		)	(2,250		)	(2,607		)	(7,592		)
Provision for income taxes	—			—			—			—
Net loss	$	(2,735	)	$	(2,250	)	$	(2,607	)	$	(7,592	)



	Three Months Ended September 30, 2018
Income Statement Items	Mortgage and REO Legacy Portfolio and Other Operations			Hospitality and Entertainment Operations			Corporate and Other			Consolidated

Revenues
Operating property revenue	$	—		$	2,085		$	—		$	2,085
Mortgage loan income	709			—			—			709
Management fees, investment and other income	—			—			32			32
Total revenue	709			2,085			32			2,826

Total operating expenses	843			3,228			2,413			6,484

Other (income) expense
Gain on disposal of assets, net	(3,543		)	—			—			(3,543		)
Total other income	(3,543		)	—			—			(3,543		)

Total costs and expense, net	(2,700		)	3,228			2,413			2,941
Income (loss) before income taxes	3,409			(1,143		)	(2,381		)	(115		)
Provision for income taxes	—			—			—			—
Net income (loss)	$	3,409		$	(1,143	)	$	(2,381	)	$	(115	)



	Nine Months Ended September 30, 2019
Income Statement Items	Mortgage and REO Legacy Portfolio and Other Operations			Hospitality and Entertainment Operations			Corporate and Other			Consolidated

Revenues
Operating property revenue	$	1,474		$	4,721		$	—		$	6,195
Mortgage loan income	1,438			—			—			1,438
Management fees, investment and other income	92			—			394			486
Total revenues	3,004			4,721			394			8,119

Total operating expenses	3,538			12,453			7,252			23,243

Other (income) expense
Gain on Disposal of Assets, Net	(244		)	—			—			(244		)
Provision for (recovery of) credit losses, net	1,463			—			—			1,463
Unrealized loss on derivatives	—			330			—			330
Total other (income) expense	1,219			330			—			1,549

Total costs and expense, net	4,757			12,783			7,252			24,792
Loss before income taxes	(1,753		)	(8,062		)	(6,858		)	(16,673		)
Provision for income taxes	—			—			—			—
Net loss	$	(1,753	)	$	(8,062	)	$	(6,858	)	$	(16,673	)



	Nine Months Ended September 30, 2018
Income Statement Items	Mortgage and REO Legacy Portfolio and Other Operations			Hospitality and Entertainment Operations			Corporate and Other			Consolidated

Revenues
Operating property revenue	$	—		$	5,753		$	—		$	5,753
Mortgage loan income	1,976			—			—			1,976
Management fees, investment and other income	2			240			81			323
Total revenue	1,978			5,993			81			8,052

Total operating expenses	2,256			9,440			6,877			18,573

Other (income) expense
Gain on disposal of assets, net	(3,938		)	—			—			(3,938		)
Provision for (recovery of) credit losses, net	(175		)	—			—			(175		)
Total other income	(4,113		)	—			—			(4,113		)

Total costs and expense, net	(1,857		)	9,440			6,877			14,460
Income (loss) before income taxes	3,835			(3,447		)	(6,796		)	(6,408		)
Provision for income taxes	—			—			—			—
Net income (loss)	$	3,835		$	(3,447	)	$	(6,796	)	$	(6,408	)