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.

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, 2019,

2018

and

2017,

segment operating results were as follows:

	For the years ended December 31,
	2019		2018		Change		%			2017		Change		%
(In thousands)
Tour revenues:
Lindblad	$	272,410	$	246,334	$	26,076		11	%	$	216,815	$	29,519		14	%
Natural Habitat		70,681		63,400		7,281		11	%		49,689		13,711		28	%
Total tour revenues	$	343,091	$	309,734	$	33,357		11	%	$	266,504	$	43,230		16	%
Operating Income:
Lindblad	$	26,203	$	19,798	$	6,405		32	%	$	7,292	$	12,506		172	%
Natural Habitat		6,995		5,540		1,455		26	%		3,452		2,088		60	%
Total operating income	$	33,198	$	25,338	$	7,860		31	%	$	10,744	$	14,594		136	%

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

December 31, 2019,

2018

and

2017

were

$5.6

million,

$3.7

million and

$2.0

million, respectively.

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

	For the years ended December 31,
	2019		2018		Change		%			2017		Change		%
(In thousands)
Depreciation and amortization:
Lindblad	$	24,116	$	19,277	$	4,839		25	%	$	15,969	$	3,308		21	%
Natural Habitat		1,653		1,491		162		11	%		1,382		109		8	%
Total depreciation and amortization	$	25,769	$	20,768	$	5,001		24	%	$	17,351	$	3,417		20	%

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

	As of December 31,
(In thousands)	2019		2018
Total Assets:
Lindblad	$	471,499	$	409,622
Natural Habitat		77,159		63,787
Total assets	$	548,658	$	473,409

Intangibles, net:
Lindblad	$	3,325	$	4,050
Natural Habitat		3,071		3,925
Total intangibles, net	$	6,396	$	7,975

Goodwill:
Lindblad	$	-	$	-
Natural Habitat		22,105		22,105
Total goodwill	$	22,105	$	22,105