Real Estate and Tangible Water Assets

3 Months Ended

Mar. 31, 2015

Real Estate [Abstract]

Real Estate and Tangible Water Assets

Real Estate and Tangible Water Assets

The costs assigned to the various components of real estate and tangible water assets were as follows (in thousands):

	March 31, 2015		December 31, 2014
Real estate and improvements held and used, net of accumulated depreciation of $11,118 and $10,899 at March 31, 2015 and December 31, 2014, respectively	$	15,169	$	16,463
Residential real estate and home construction inventories	329,710		322,938
Other real estate inventories completed or under development	10,308		10,308
Tangible water assets	42,531		42,530
Total real estate and tangible water assets	$	397,718	$	392,239

Amortization of real estate improvements was approximately $220,000 for the three months ended March 31, 2015 and 2014, respectively.

Impairment Losses for the Three Months Ended March 31, 2015:

During the three months ended March 31, 2015, the Company recorded an impairment loss of $1.9 million to write down the value of certain real estate in Oklahoma and associated capitalized development costs to their estimated fair value of $1.3 million which was based on the estimated selling price of the assets. The loss was reported in the condensed consolidated statement of operations and comprehensive income or loss within impairment loss on intangible and long-lived assets and was included in the results of operations of the agribusiness operations segment.

Impairment Losses for the Year Ended December 31, 2014:

During 2014, certain water rights applications were denied by the New Mexico State Engineer and as a result, the Company recorded an impairment loss of $3.5 million by writing down the project’s capitalized costs to zero.

During 2014, the Company decided to sell a property “as-is” as opposed to performing development activities as originally planned and has therefore written down the carrying value of the asset to the estimated fair value. The Company has reduced the carrying value of the real estate balance to $1.4 million by recording an impairment loss of $2.9 million.