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 months ended March 31, 2020 and 2019, 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 F&B 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, 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 March 31, 2020 and December 31, 2019, and for the three months ended March 31, 2020 and 2019, is summarized as follows (in thousands):



	March 31,		December 31,
Balance Sheet Items	2020		2019
Total Assets
Mortgage and REO Legacy portfolio and other operations	$	46,658	$	66,266
Hospitality and entertainment operations	67,384		67,510
Corporate and other	7,941		5,832
Consolidated total	$	121,983	$	139,608

	Three months ended March 31,
Cash Flow Items	2020		2019
Expenditures for additions to long-lived assets
Mortgage and REO Legacy portfolio and other operations	$	—	$	—
Hospitality and entertainment operations	715		4,667
Corporate and other	—		—
Consolidated total	$	715	$	4,667



	Three months ended March 31, 2020
Income Statement Items	Mortgage and REO Legacy Portfolio and Other Operations			Hospitality and Entertainment Operations			Corporate and Other			Consolidated

Revenues
Operating property revenue	$	239		$	1,809		$	—		$	2,048
Mortgage loan income	—			—			—			—
Management fees, investment and other income	14			23			55			92
Total revenue	253			1,832			55			2,140

Total operating expenses	909			5,055			2,012			7,976

Other (income) expense
Recovery of credit losses, net	(1,750		)	—			—			(1,750		)
Equity earnings from unconsolidated entities	(122		)	—			—			(122		)
Total other income, net	(1,872		)	—			—			(1,872		)

Total costs and expense, net	(963		)	5,055			2,012			6,104
Income (loss) before income taxes	1,216			(3,223		)	(1,957		)	(3,964		)
Provision for income taxes	—			—			—			—
Net income (loss)	$	1,216		$	(3,223	)	$	(1,957	)	$	(3,964	)



	Three months ended March 31, 2019
Income Statement Items	Mortgage and REO Legacy Portfolio and Other Operations		Hospitality and Entertainment Operations			Corporate and Other			Consolidated

Revenues
Operating property revenue	$	—	$	314		$	—		$	314
Mortgage loan income	650		—			—			650
Management fees, investment and other income	2		—			66			68
Total revenue	652		314			66			1,032

Total operating expenses	490		3,049			2,339			5,878

Other (income) expense
Unrealized loss on derivatives	—		167			—			167
Total other (income) expense, net	—		167			—			167

Total costs and expense, net	490		3,216			2,339			6,045
Income (loss) before income taxes	162		(2,902		)	(2,273		)	(5,013		)
Provision for income taxes	—		—			—			—
Net income (loss)	$	162	$	(2,902	)	$	(2,273	)	$	(5,013	)