Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

Note 16 — Segment Information

We manage our operations through three business segments: real estate, mineral resources and fiber resources. Real estate secures entitlements and develops infrastructure on our lands for single-family residential and mixed-use communities, and manages our undeveloped land and income producing properties, primarily a hotel and our multifamily properties. Mineral resources manages our oil, natural gas and water interests. Fiber resources manages our timber and recreational leases.

We evaluate performance based on segment earnings (loss) before unallocated items and income taxes. Segment earnings (loss) consist of operating income, equity in earnings (loss) of unconsolidated ventures, gain on sale of assets, interest income on loans secured by real estate and net (income) loss attributable to noncontrolling interests. Items not allocated to our business segments consist of general and administrative expense, share-based compensation, gain on sale of strategic timberland, interest expense and other corporate non-operating income and expense. The accounting policies of the segments are the same as those described in the accounting policy note to the consolidated financial statements. Our revenues are derived from our U.S. operations and all of our assets are located in the U.S. In 2012, no single customer accounted for more than 10 percent of our total revenues. In 2011, revenues of $17,980,000 from one customer of our real estate segment exceeded 10 percent of our total revenues as result of selling about 9,700 acres of undeveloped land from our retail sales program.

	Real Estate			Mineral Resources		Fiber Resources		Items Not Allocated to Segments			Total
	(In thousands)
For the year or at year-end 2012:
Revenues	$	120,115		$	44,220	$	8,256	$	—		$	172,591
Depreciation, depletion and amortization		4,340			4,987		1,254		8,345			18,926
Equity in earnings (loss) of unconsolidated ventures		13,897			509		63		—			14,469
Income (loss) before taxes		53,582			21,581		5,056		(59,261	)(a)		20,958
Total assets		588,137			238,825		12,302		79,170			918,434
Investment in unconsolidated ventures		41,546			—		—		—			41,546
Capital expenditures(b)		1,093			21,986		277		795			24,151
For the year or at year-end 2011:
Revenues	$	106,168		$	24,584	$	4,821	$	—		$	135,573
Depreciation, depletion and amortization		5,729			339		1,029		3,705			10,802
Equity in earnings (loss) of unconsolidated ventures		(30,626	)		1,394		23		—			(29,209	)
Income (loss) before taxes		(25,704	)		16,023		1,893		17,963	(a)		10,175
Total assets		659,802			16,199		14,444		104,412			794,857
Investment in unconsolidated ventures		64,223			—		—		—			64,223
Capital expenditures(b)		739			4,796		47		766			6,348
For the year or at year-end 2010:
Revenues	$	68,269		$	24,790	$	8,301	$	—		$	101,360
Depreciation, depletion and amortization		3,089			333		1,583		5,553			10,558
Equity in earnings of unconsolidated ventures		2,629			2,072		—		—			4,701
Income (loss) before taxes		(4,634	)		22,783		5,058		(15,612	)(a)		7,595
Total assets		668,689			13,399		18,258		88,978			789,324
Investment in unconsolidated ventures		101,166			—		—		—			101,166
Capital expenditures(b)		2,392			49		3		258			2,702

^(a)  Items not allocated to segments consist of:

	For the Year
	2012			2011			2010
	(In thousands)
General and administrative expense	$	(25,176	)	$	(20,110	)	$	(17,341	)
Share-based compensation expense		(14,929	)		(7,067	)		(11,596	)
Gain on sale of assets		16			61,784			28,607
Interest expense		(19,363	)		(17,012	)		(16,446	)
Other corporate non-operating income		191			368			1,164
	$	(59,261	)	$	17,963		$	(15,612	)

^(b)  Consists of expenditures for oil and natural gas properties and equipment, property, plant and equipment and reforestation of timber.

In 2012, general and administrative expense includes $6,323,000 in transaction costs associated with our acquisition of Credo. Share-based compensation increased principally as a result of increase in our stock price and impact on cash-settled awards. Interest expense includes a $4,448,000 loss on extinguishment of debt associated with the amendment and extension of our term loan in 2012.

In 2011, general and administrative expense includes $3,187,000 associated with proposed private debt offerings that we withdrew as a result of deterioration of terms available to us in the credit markets. Share-based compensation decreased principally as a result of a decline in our stock price and its impact on cash-settled awards. Gain on sale of assets represents the sale of about 57,000 acres of timberland for $87,061,000 in accordance with our 2009 strategic initiatives, which we completed in 2011.

In 2010, gain on sale of assets represents the sale of over 24,000 acres of timberland for $38,778,000 in accordance with our 2009 strategic initiatives. Interest expense decreased principally due to lower interest rates as a result of the maturity of our interest rate swap agreement and decreased amortization of prepaid loan fees.