Segment Information

We manage our operations through three business 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, commercial and income producing properties. Mineral resources managed our owned mineral assets. Other managed our timber, recreational leases and water resource assets.

We have divested all of our oil and gas working interest properties. As a result of this significant change in our operations, we have reported the results of operations and financial position of these assets as discontinued operations for all periods presented. In addition, we changed the name of the oil and gas segment to mineral resources to reflect the strategic shift from oil and gas working interest investments to owned mineral interests. We also changed the name of the other natural resources segment to other.

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, interest expense, loss on extinguishment of debt and other corporate non-operating income and expense. The accounting policies of the segments are the same as those described in Note 1 — Summary of Significant Accounting Policies. Our revenues are derived from our U.S. operations and all of our assets are located in the U.S. In 2017, one homebuilder accounted for $20,923,000 of our total real estate segment revenues. In 2016 and 2015, no single customer accounted for more than 10 percent of our total revenues, other than the customer associated with the sale of our Midtown Cedar Hill multifamily project in 2015.



	Real Estate		Mineral Resources		Other			Items Not Allocated to Segments				Total
	(In thousands)
For the year or at year-end 2017
Revenues	$	112,746	$	1,502	$	74		$	—			$	114,322
Depreciation, depletion and amortization	131		28		25			5,279				5,463
Equity in earnings of unconsolidated ventures	16,500		1,395		4			—				17,899
Income (loss) before taxes from continuing operations attributable to Forestar Group Inc.	47,281		45,552		(6,393		)	(36,397		)	^(a)	50,043
Total assets	386,222		—		3,346			372,344				761,912
Investment in unconsolidated ventures	64,579		—		—			—				64,579
Capital expenditures	52		2,400		—			—				2,452
For the year or at year-end 2016
Revenues	$	190,273	$	5,076	$	1,965		$	—			$	197,314
Depreciation, depletion and amortization	976		145		352			7,772				9,245
Equity in earnings of unconsolidated ventures	5,778		173		172			—				6,123
Income (loss) before taxes from continuing operations attributable to Forestar Group Inc.	121,420		3,327		(4,625		)	(29,307		)	^(a)	90,815
Total assets ^(b)	403,062		38,907		11,531			279,694				733,194
Investment in unconsolidated ventures	77,611		—		—			—				77,611
Capital expenditures	5,783		—		299			56				6,138
For the year or at year-end 2015
Revenues	$	202,830	$	9,094	$	6,652		$	—			$	218,576
Depreciation, depletion and amortization	7,605		383		540			8,166				16,694
Equity in earnings of unconsolidated ventures	15,582		275		151			—				16,008
Income (loss) before taxes from continuing operations attributable to Forestar Group Inc.	67,678		4,230		(608		)	(63,086		)	^(a)	8,214
Investment in unconsolidated ventures	82,453		—		—			—				82,453
Capital expenditures	13,644		59		745			242				14,690

_____________________


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



	For the Year
	2017			2016			2015
	(In thousands)
General and administrative expense	$	(50,354	)	$	(18,274	)	$	(24,802	)
Share-based and long-term incentive compensation expense	(7,201		)	(4,425		)	(4,474		)
Gain on sale of assets	28,674			48,891			—
Interest expense	(8,532		)	(19,985		)	(34,066		)
Loss on extinguishment of debt, net	(611		)	(35,864		)	—
Other corporate non-operating income	1,627			350			256
	$	(36,397	)	$	(29,307	)	$	(63,086	)


^(b)	Total assets excludes assets of discontinued operations of $14,000 and $104,967,000 in 2016 and 2015.