NOTE 19. BUSINESS SEGMENT DATA

The Company operates in four primary business segments: income properties, commercial loan investments, real estate operations, and golf operations. Our income property operations consist primarily of income-producing properties, and our business plan is focused on investing in additional income-producing properties. Our income property operations accounted for 78.7% and 70.3% of our identifiable assets as of September 30, 2017 and December 31, 2016, respectively, and 30.5% and 42.6% of our consolidated revenues for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, we have four commercial loan investments including one fixed-rate and one variable–rate mezzanine commercial mortgage loan, a variable-rate B-Note representing a secondary tranche in a commercial mortgage loan, and a fixed-rate first mortgage loan. Our real estate operations primarily consist of revenues generated from land transactions and leasing, royalty income, and revenue from the release of surface entry rights from our Subsurface Interests. Our golf operations consist of a single property located in the City, with two 18-hole championship golf courses, a practice facility, and clubhouse facilities, including a restaurant and bar operation, fitness facility, and pro-shop with retail merchandise. The majority of the revenues generated by our golf operations are derived from members and public customers playing golf, club memberships, and food and beverage operations.

The Company reports performance based on profit or loss from operations before income taxes. The Company’s reportable segments are strategic business units that offer different products. They are managed separately because each segment requires different management techniques, knowledge, and skills.

Information about the Company’s operations in the different segments for the three and nine months ended September 30, 2017 and 2016 is as follows:


	Three Months Ended				Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Revenues:
Income Properties	$	7,928,258	$	6,021,331	$	22,566,505	$	18,483,654
Commercial Loan Investments		637,801		534,212		1,727,449		2,050,507
Real Estate Operations		2,926,406		4,643,646		45,658,221		18,979,164
Golf Operations		797,420		1,001,368		3,655,877		3,877,923
Agriculture and Other Income		90,717		10,388		323,617		48,070
Total Revenues	$	12,380,602	$	12,210,945	$	73,931,669	$	43,439,318
Operating Income:
Income Properties	$	6,212,742	$	4,590,689	$	17,809,761	$	14,672,265
Commercial Loan Investments		637,801		534,212		1,727,449		2,050,507
Real Estate Operations		2,467,237		3,386,463		30,249,674		14,340,299
Golf Operations		(475,227)		(301,552)		(517,367)		(276,761)
Agriculture and Other Income		71,843		(42,506)		233,770		(105,529)
General and Corporate Expense		(5,156,947)		7,712,203		(14,856,020)		(3,675,088)
Total Operating Income	$	3,757,449	$	15,879,509	$	34,647,267	$	27,005,693
Depreciation and Amortization:
Income Properties	$	3,053,295	$	1,866,162	$	8,848,101	$	5,571,785
Golf Operations		97,959		64,676		258,649		201,944
Agriculture and Other		9,915		14,622		32,684		44,657
Total Depreciation and Amortization	$	3,161,169	$	1,945,460	$	9,139,434	$	5,818,386
Capital Expenditures:
Income Properties	$	2,829,567	$	49,751,977	$	47,515,911	$	52,604,951
Golf Operations		237,560		4,500		2,112,060		17,661
Agriculture and Other		10,558		2,465		61,586		18,332
Total Capital Expenditures	$	3,077,685	$	49,758,942	$	49,689,557	$	52,640,944


	As of
	September 30, 2017		December 31, 2016
Identifiable Assets:
Income Properties	$	343,740,067	$	302,757,565
Commercial Loan Investments		26,984,350		24,032,885
Real Estate Operations		44,753,918		58,868,298
Golf Operations		5,877,837		3,675,842
Agriculture and Other		15,354,629		19,288,836
Total Assets	$	436,710,801	$	408,623,426

Operating income represents income from continuing operations before loss on early extinguishment of debt, interest expense, investment income, and income taxes. General and corporate expenses are an aggregate of general and administrative expenses, impairment charges, depreciation and amortization expense, land lease termination, and gains (losses) on the disposition of assets. Identifiable assets by segment are those assets that are used in the Company’s operations in each segment. Other assets consist primarily of cash, property, plant, and equipment related to the other operations, as well as the general and corporate operations.