Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

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 is an independent oil and gas exploration, development and production operation and manages our owned and leased mineral interests. Other natural resources manages our timber, recreational leases and water resource initiatives.

Total assets allocated by segment are as follows:

	First Quarter-End		Year-End
	2014		2013
	(In thousands)
Real estate	$	592,447	$	582,802
Oil and gas	320,972		312,553
Other natural resources	23,381		23,478
Assets not allocated to segments (a)	206,444		253,319
	$	1,143,244	$	1,172,152

  _________________________

^(a)  Assets not allocated to segments at first quarter-end2014 principally consist of cash and cash equivalents of $147,979,000 and a net deferred tax asset of $39,164,000. Assets not allocated to segments at year-end 2013 principally consist of cash and cash equivalents of $192,307,000 and a net deferred tax asset of $40,398,000.

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 first quarter2014, revenues of $15,573,000 from one single customer of our real estate segment accounted for more than ten percent of our total revenues as result of selling approximately 8,400 acres of undeveloped land.

Segment revenues and earnings are as follows:

	First Quarter
	2014			2013
	(In thousands)
Revenues:
Real estate	$	65,480		$	78,689
Oil and gas	17,554			15,504
Other natural resources	1,571			3,278
Total revenues	$	84,605		$	97,471
Segment earnings (loss):
Real estate	$	23,575		$	19,446
Oil and gas	807			5,127
Other natural resources	(528		)	1,252
Total segment earnings	23,854			25,825
Items not allocated to segments (a)	(10,862		)	(19,881		)
Income before taxes attributable to Forestar Group Inc.	$	12,992		$	5,944

  _________________________

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

	First Quarter
	2014			2013
	(In thousands)
General and administrative expense	$	(5,168	)	$	(4,958	)
Shared-based compensation expense	(313		)	(10,415		)
Interest expense	(5,503		)	(4,539		)
Other corporate non-operating income	122			31
	$	(10,862	)	$	(19,881	)