Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

We manage our operations through three segments: real estate, mineral resources and other. Real estate secures entitlements and develops infrastructure on our lands for single-family residential and mixed-use communities, and manages our undeveloped land and commercial and income producing properties, which consists of three multifamily projects and one site. Mineral resources manages our owned mineral interests. Other manages our timber, recreational leases and water resource initiatives.

Total assets allocated by segment are as follows:

	First Quarter-End		Year-End
	2017		2016
	(In thousands)
Real estate	$	404,322	$	403,062
Mineral resources	7,921		38,907
Other	11,509		11,531
Assets of discontinued operations	5		14
Assets not allocated to segments (a)	339,837		279,694
	$	763,594	$	733,208

 _________________________

^(a)  Assets not allocated to segments at first quarter-end2017 principally consist of cash and cash equivalents of $337,432,000. Assets not allocated to segments at year-end 2016 principally consist of cash and cash equivalents of $265,798,000 and an income tax receivable of $10,867,000.

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 and long-term incentive compensation, gain on sale of strategic timberland and undeveloped land, 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.

Segment revenues and earnings are as follows:

	First Quarter
	2017			2016
	(In thousands)
Revenues:
Real estate	$	20,752		$	36,098
Mineral resources	1,497			1,082
Other	56			438
Total revenues	$	22,305		$	37,618
Segment earnings (loss):
Real estate	$	10,473		$	20,224
Mineral resources	37,816			553
Other	(387		)	(581		)
Total segment earnings	47,902			20,196
Items not allocated to segments (a)	(6,904		)	(14,204		)
Income (loss) from continuing operations before taxes attributable to Forestar Group Inc.	$	40,998		$	5,992

  _________________________

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

	First Quarter
	2017			2016
	(In thousands)
General and administrative expense	$	(4,028	)	$	(4,973	)
Shared-based and long-term incentive compensation expense	(895		)	(1,544		)
Interest expense	(2,235		)	(7,639		)
Other corporate non-operating income	254			(48		)
	$	(6,904	)	$	(14,204	)