Segment Information

Historically, the Company managed its operations through its real estate segment, mineral resources segment (previously referred to as oil and gas) and other segment (previously referred to as other natural resources). During the three months ended December 31, 2018, the Company began managing its operations through one real estate segment. As such, the operating results of the Company's real estate segment are consistent with its consolidated operating results and no separate disclosure is required as of and for the three and nine months ended June 30, 2019. The Company's real estate segment is its core business and is expected to generate all of the Company’s revenues in fiscal 2019. The real estate segment primarily acquires land and develops infrastructure for single-family residential communities. The Company's real estate segment generates its revenues principally from sales of residential single-family finished lots to local, regional and national homebuilders.

The Company has other business activities which were presented in its other segment in prior periods. The assets and results of operations of these business activities are immaterial and are included within the Company's real estate segment in the current periods.

Additionally, as of and for the three and nine months ended June 30, 2019, all assets and results of operations have been included in the real estate segment. In prior periods, certain costs and assets were not allocated to the Company’s segments. During the three months ended December 31, 2018, the Company began evaluating the results of operations of its real estate segment based on income from continuing operations before income taxes. As a result, all of the Company’s results of operations have been allocated to the real estate segment for the three and nine months ended June 30, 2019. This change in the measure of segment profit (loss) was adopted prospectively and the prior period segment results have not been adjusted to conform to the current period. In prior periods, segment earnings (loss) consist of operating income, equity in earnings (loss) of unconsolidated ventures, gain on sales of assets, interest income and net income (loss) attributable to noncontrolling interests. Items not allocated to segments in prior periods consist of general and administrative expense, share-based and long-term incentive compensation, gain on sale of timberland assets, interest expense, and other corporate interest and other income.

The accounting policies of the reporting segment is described throughout Note 1 in the Company's annual report on Form 10-KT for the nine months ended September 30, 2018.

Total assets by segment at September 30, 2018 are as follows:



	September 30, 2018
	Real Estate		Other		Items Not Allocated		Consolidated
	(In millions)
Cash and cash equivalents	$	—	$	—	$	318.8	$	318.8
Restricted cash	—		—		16.2		16.2
Real estate	498.0		—		—		498.0
Investment in unconsolidated ventures	11.7		—		—		11.7
Income taxes receivable	—		—		4.4		4.4
Property and equipment, net	—		1.5		0.2		1.7
Deferred tax asset, net	—		—		26.9		26.9
Other assets	12.4		0.4		2.6		15.4
	$	522.1	$	1.9	$	369.1	$	893.1

Segment results for the three and nine months ended June 30, 2018 are as follows:



	Three Months Ended June 30, 2018
	Real Estate			Other			Items Not Allocated			Consolidated
	(In millions)
Revenues	$	23.6		$	—		$	—		$	23.6
Cost of sales	9.9			0.1			—			10.0
Selling, general and administrative expense	2.9			—			3.6			6.5
Equity in earnings of unconsolidated ventures	(1.0		)	—			—			(1.0		)
Gain on sale of assets	(1.3		)	—			—			(1.3		)
Interest expense	—			—			1.6			1.6
Interest and other income	(1.0		)	—			(1.6		)	(2.6		)
Income (loss) from continuing operations before taxes	$	14.1		$	(0.1	)	$	(3.6	)	$	10.4
Net income attributable to noncontrolling interests	0.9			—			—			0.9
Income (loss) from continuing operations before taxes attributable to Forestar Group Inc.	$	13.2		$	(0.1	)	$	(3.6	)	$	9.5



	Nine Months Ended June 30, 2018
	Real Estate			Other			Items Not Allocated			Consolidated
	(In millions)
Revenues	$	77.0		$	—		$	—		$	77.0
Cost of sales	42.4			6.5			—			48.9
Selling, general and administrative expense	10.3			0.2			25.6			36.1
Equity in earnings of unconsolidated ventures	(9.6		)	—			—			(9.6		)
Gain on sale of assets	(4.1		)	—			—			(4.1		)
Interest expense	—			—			5.8			5.8
Interest and other income	(1.8		)	—			(3.0		)	(4.8		)
Income (loss) from continuing operations before taxes	$	39.8		$	(6.7	)	$	(28.4	)	$	4.7
Net income attributable to noncontrolling interests	2.9			—			—			2.9
Income (loss) from continuing operations before taxes attributable to Forestar Group Inc.	$	36.9		$	(6.7	)	$	(28.4	)	$	1.8