Segment Reporting

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

PICO is a diversified holding company engaged in five operating and reportable segments:  Water Resource and Water Storage Operations, Real Estate Operations, Corporate, Insurance Operations in Run Off, and Agribusiness Operations.

The accounting policies of the reportable segments are the same as those described in the Company’s 2010 Annual Report on Form 10-K filed with the SEC.  During the nine months ended September 30, 2011, the insurance in run off segment paid a dividend to the corporate segment, consisting of cash, a publicly traded equity security, and a subsidiary holding various investments in publicly traded equity securities, changing the composition of both segments. As a result, all prior period segment results, including total assets, revenues, and income or loss before taxes for the insurance in run off segment and corporate segment have been restated to reflect the change in the segment composition as of the beginning of the earliest period presented in this report.

During the third quarter of 2011, the Company signed an agreement to sell Nevada Land and Resource Company, a wholly owned subsidiary of the Company, that is a component of the real estate segment.

Management analyzes segments using the following information:

Segment assets (in thousands):

	September 30, 2011		December 31, 2010
Total Assets:
Water Resource and Water Storage Operations	$	204,315	$	226,496
Real Estate Operations	162,344		146,897
Corporate	108,507		125,789
Insurance Operations in Run Off	87,518		114,872
Agribusiness Operations	85,961		78,448
	$	648,645	$	692,502

Segment Assets:

During the nine months ended September 30, 2011, total assets of the water resource and water storage operations decreased $22.2 million, primarily due to the $16.2 million impairment charge recorded during the three months ended September 30, 2011. Total assets in the real estate operations increased $15.4 million primarily due to acquisitions and development of real estate at UCP. Assets in the corporate segment decreased $17.3 million primarily due to the recording of the valuation allowance on the net deferred tax assets offset by an increase in assets due to a dividend from the insurance operations in run off segment. Insurance operations in run-off decreased $27.4 million primarily as a result of a dividend paid to the corporate segment.

Consolidated Assets:

On a consolidated basis, during the nine months ended September 30, 2011, total investments decreased $68.3 million primarily due to the sale of equity securities, and property and equipment increased $61.5 million primarily from construction costs for the canola plant being built in Hallock, MN. During the nine months ended September 30, 2011, the total deferred tax assets of the Company declined $20 million due to the full valuation allowance recorded during the period.

Segment revenues and income or loss before taxes (in thousands): 

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Revenues:
Water Resource and Water Storage Operations	$	384		$	375		$	1,073		$	2,499
Real Estate Operations	14,585			611			22,928			4,336
Corporate	1,672			2,883			6,548			7,711
Insurance Operations in Run Off	4,898			3,628			14,614			6,376
Agribusiness Operations	1						8
Total revenues	$	21,540		$	7,497		$	45,171		$	20,922
Income (Loss) Before Taxes:
Water Resource and Water Storage Operations	$	(17,470	)	$	(2,731	)	$	(20,532	)	$	(6,622	)
Real Estate Operations	2,244			(792		)	265			(2,462		)
Corporate	(2,368		)	(2,480		)	(4,006		)	(8,594		)
Insurance Operations in Run Off	4,468			3,250			13,382			5,149
Agribusiness Operations	(695		)				(1,668		)
Loss before income taxes	$	(13,821	)	$	(2,753	)	$	(12,559	)	$	(12,529	)