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.

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 as of December 31, 2019 and 2018 and for the years then ended is summarized as follows (in thousands):



	December 31,
Balance Sheet Items	2019		2018
Total Assets
Mortgage and REO - Legacy portfolio and other operations	$	66,266	$	67,658
Hospitality and entertainment operations	67,510		52,753
Corporate and other	5,832		23,228
Consolidated total	$	139,608	$	143,639

Expenditures for additions to long-lived assets
Mortgage and REO - Legacy portfolio and other operations	$	248	$	2,323
Hospitality and entertainment operations	14,433		14,353
Corporate and other	26		16
Consolidated total	$	14,707	$	16,692



	Year Ended December 31, 2019
Income Statement Items	Mortgage and REO Legacy Portfolio and Other Operations			Hospitality and Entertainment Operations			Corporate and Other			Consolidated

Revenues
Mortgage loan income	$	1,909		$	—		$	—		$	1,909
Operating property, management fees, and other	3,058			7,583			525			11,166
Total revenue	4,967			7,583			525			13,075

Total operating expenses	5,952			18,129			9,079			33,160

Other (income) expense
Gain on disposal of assets, net	(184		)	—			—			(184		)
Provision for (Recovery of) credit losses	1,463			—			—			1,463
Impairment of real estate owned, net	1,475			—			—			1,475
Unrealized loss on derivatives	—			330			—			330
Settlement and related costs, net	—			—			1,300			1,300
Equity earnings of unconsolidated entities	(175		)	—			—			(175		)
Total other expense, net	2,579			330			1,300			4,209

Total costs and expense, net	8,531			18,459			10,379			37,369
Loss, before income taxes	(3,564		)	(10,876		)	(9,854		)	(24,294		)
Provision for income taxes	—			—			—			—
Net loss	$	(3,564	)	$	(10,876	)	$	(9,854	)	$	(24,294	)



	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 derivative	—			218			—			218
Total other (income) expense, net	(5,325		)	218			—			(5,107		)

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