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Segment Information
 6 Months Ended
Jun. 30, 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:
 
Second
Quarter-End
 
Year-End
 
2014
 
2013
 
(In thousands)
Real estate
$
612,076

 
$
582,802

Oil and gas
343,164

 
312,553

Other natural resources
26,103

 
23,478

Assets not allocated to segments (a)
241,009

 
253,319

 
$
1,222,352

 
$
1,172,152


  _________________________
(a) 
Assets not allocated to segments at second quarter-end 2014 principally consist of cash and cash equivalents of $184,168,000 and a net deferred tax asset of $34,519,000. 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 second quarter and first six months 2014, no single customer accounted for more than ten percent of our total revenues.
Segment revenues and earnings are as follows:
 
Second Quarter
 
First Six Months
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
Revenues:
 
 
 
 
 
 
 
Real estate
$
55,173

 
$
41,219

 
$
120,653

 
$
119,908

Oil and gas
24,377

 
15,831

 
41,931

 
31,335

Other natural resources
3,463

 
3,029

 
5,034

 
6,307

Total revenues
$
83,013

 
$
60,079

 
$
167,618

 
$
157,550

Segment earnings:
 
 
 
 
 
 
 
Real estate
$
27,297

 
$
8,104

 
$
50,872

 
$
27,550

Oil and gas
9,522

 
4,243

 
10,329

 
9,370

Other natural resources
2,079

 
991

 
1,551

 
2,243

Total segment earnings
38,898

 
13,338

 
62,752

 
39,163

Items not allocated to segments (a)
(16,025
)
 
(11,886
)
 
(26,887
)
 
(31,767
)
Income before taxes attributable to Forestar Group Inc.
$
22,873

 
$
1,452

 
$
35,865

 
$
7,396


  _________________________
(a) 
Items not allocated to segments consist of:
 
Second Quarter
 
First Six Months
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
General and administrative expense
$
(5,566
)
 
$
(5,329
)
 
$
(10,734
)
 
$
(10,287
)
Shared-based compensation expense
(3,219
)
 
(1,460
)
 
(3,532
)
 
(11,875
)
Interest expense
(7,370
)
 
(5,122
)
 
(12,873
)
 
(9,661
)
Other corporate non-operating income
130

 
25

 
252

 
56

 
$
(16,025
)
 
$
(11,886
)
 
$
(26,887
)
 
$
(31,767
)