NOTE

– SEGMENT INFORMATION

The Company’s chief operating decision maker, or CODM, assesses performance and allocates resources based upon the separate financial information from the Company’s operating segments. In identifying its reportable segments, the Company considered the nature of services provided, the geographical areas in which the segments operated and other relevant factors.

The Company is primarily a specialty cruise operator with operations in

two

segments, Lindblad and Natural Habitat. While both segments have similar characteristics, the

two

operating and reporting segments cannot be aggregated because they fail to meet the requirements for aggregation. The Company evaluates the performance of the business based largely on the results of its operating segments. The CODM and management review operating results monthly, and base operating decisions on the total results at a consolidated level, as well as at a segment level. The reports provided to the Board of Directors are at a consolidated level and also contain information regarding the separate results of both segments.

During the

second

quarter of

2016,

the Company completed its acquisition of Natural Habitat. As a result of the acquisition, the Company updated its reporting information and its operating segments to add Natural Habitat as a separate operating and reporting segment.

The Company evaluates the performance of its business segments based largely on tour revenues and operating income, without allocating other income and expenses, net, income taxes and interest expense, net. For the full year ended

December 31, 2018,

2017

and

2016,

operating results were as follows:

	For the years ended December 31,
(In thousands)	2018		2017		Change		%			2016		Change			%
Tour revenues:
Lindblad	$	246,334	$	216,815	$	29,519		14	%	$	207,836	$	8,979			4	%
Natural Habitat (a)		63,400		49,689		13,711		28	%		34,510		15,179			44	%
Total tour revenues	$	309,734	$	266,504	$	43,230		16	%	$	242,346	$	24,158			10	%
Operating income (loss):
Lindblad	$	19,798	$	7,292	$	12,506		172	%	$	11,794	$	(4,502	)		(38	%)
Natural Habitat (a)		5,540		3,452		2,088		60	%		2,187		1,265			58	%
Total operating income	$	25,338	$	10,744	$	14,594		136	%	$	13,981	$	(3,237	)		(23	%)

__________

(a) The

2016

Natural Habitat segment results represent activity from acquisition date of

May 2016

through

December 31, 2016.

Depreciation and amortization are included in segment operating income as shown below:

	For the years ended December 31,
(In thousands)	2018		2017		Change		%			2016		Change			%
Depreciation and amortization:
Lindblad	$	19,277	$	15,969	$	3,308		21	%	$	17,569	$	(1,600	)		(9%	)
Natural Habitat (a)		1,491		1,382		109		8	%		851		531			62	%
Total depreciation and amortization	$	20,768	$	17,351	$	3,417		20	%	$	18,420	$	(1,069	)		(6%	)

__________

(a) The

2016

Natural Habitat segment results represent activity from acquisition date of

May 2016

through

December 31, 2016.

The following table presents our total assets, intangibles, net and goodwill by segment:

	For the years ended December 31,
(In thousands)	2018		2017
Total Assets:
Lindblad	$	409,622	$	371,080
Natural Habitat		63,787		53,268
Total assets	$	473,409	$	424,348
Intangibles, net:
Lindblad	$	4,050	$	4,776
Natural Habitat		3,925		4,778
Total intangibles, net	$	7,975	$	9,554
Goodwill
Lindblad	$	-	$	-
Natural Habitat		22,105		22,105
Total goodwill	$	22,105	$	22,105

Intercompany tour revenues between the Lindblad and Natural Habitat segments eliminated in consolidation for the years ended

December 31, 2018,

2017

and

2016

were

$3.7,

$2.0

and

$0.5

million, respectively.