XML 85 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Segment Information
Segment Information
In first quarter 2013, we changed our reportable segments to better reflect the underlying market fundamentals and operating strategy of our core business operations, real estate and oil and gas. With this change, we aggregated our fiber and water resource operating results in other natural resources. All prior period segment information has been reclassified to conform to the current year presentation.
We manage our operations through three segments: real estate, oil and gas and other natural resources. Real estate secures entitlements and develops infrastructure on our lands for single-family residential and mixed-use communities, and manages our undeveloped land, commercial and income producing properties, primarily a hotel and our multifamily investments. Oil and gas manages our owned mineral interests and interests leased from others and is an independent oil and gas exploration, development and production operation. Other natural resources manages our timber, recreational leases and water resource initiatives.

Assets allocated by segment are as follows:
 
Third
Quarter-End
 
Year-End
 
2013
 
2012
 
(In thousands)
Real estate
$
581,725

 
$
588,137

Oil and gas
284,091

 
227,061

Other natural resources
23,272

 
24,066

Assets not allocated to segments (a)
114,399

 
79,170

Total assets
$
1,003,487

 
$
918,434


  _________________________
(a) 
Assets not allocated to segments at third quarter-end 2013 principally consist of cash and cash equivalents of $54,769,000 and a net deferred tax asset of $41,832,000. Assets not allocated to segments at year-end 2012 principally consist of a net deferred tax asset of $54,748,000 and cash and cash equivalents of $10,361,000.
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 sales 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 Note 1 — Basis of Presentation. Our revenues are derived from U.S. operations and all of our assets are located in the U.S. In third quarter 2013, no single customer accounted for more than 10 percent of our total revenues.
Segment revenues and earnings are as follows:
 
Third Quarter
 
First Nine Months
 
2013
 
2012
 
2013
 
2012
 
(In thousands)
Revenues:
 
 
 
 
 
 
 
Real estate
$
50,356

 
$
27,115

 
$
170,264

 
$
71,684

Oil and gas
22,095

 
10,479

 
53,430

 
27,053

Other natural resources
2,656

 
3,016

 
8,963

 
5,277

Total revenues
$
75,107

 
$
40,610

 
$
232,657

 
$
104,014

Segment earnings:
 
 
 
 
 
 
 
Real estate
$
13,197

 
$
12,688

 
$
40,747

 
$
31,931

Oil and gas
8,499

 
7,337

 
17,869

 
19,470

Other natural resources
549

 
552

 
2,792

 
(769
)
Total segment earnings
22,245

 
20,577

 
61,408

 
50,632

Items not allocated to segments (a)
(13,347
)
 
(22,358
)
 
(45,114
)
 
(46,448
)
Income (loss) before taxes attributable to Forestar Group Inc.
$
8,898

 
$
(1,781
)
 
$
16,294

 
$
4,184


  _________________________
(a) 
Items not allocated to segments consist of:
 
Third Quarter
 
First Nine Months
 
2013
 
2012
 
2013
 
2012
 
(In thousands)
General and administrative expense
$
(4,648
)
 
$
(8,000
)
 
$
(14,935
)
 
$
(19,482
)
Shared-based compensation expense
(3,492
)
 
(6,327
)
 
(15,367
)
 
(11,491
)
Interest expense
(5,231
)
 
(8,094
)
 
(14,892
)
 
(15,649
)
Other corporate non-operating income
24

 
63

 
80

 
174

 
$
(13,347
)
 
$
(22,358
)
 
$
(45,114
)
 
$
(46,448
)