SEGMENT REPORTING

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

PICO Holdings, Inc. is a diversified holding company. The Company accounts for its segments consistent with the significant accounting policies described in Note 1.

The Company organizes its reportable segments by line of business. Currently, the major businesses that constitute operating and reportable segments are: developing water resources and water storage operations, developing land and homebuilding, corporate, which included investments in public and private debt and equity securities, deferred compensation plans, and oil and gas operations, and the discontinued operations of a canola seed processing plant.

Segment performance is measured by revenues and segment profit before income tax. In addition, assets identifiable with segments are disclosed as well as capital expenditures, and depreciation and amortization. The Company’s reported revenue for the three years ended December 31, 2015 was earned in the United States and therefore no geographic region disclosure is presented.

Water Resources and Water Storage Operations

The Company is engaged in the development of water for end-users in the southwestern United States, namely water utilities, municipalities, developers, or industrial users.

Real Estate Operations

The Company is engaged in land development and homebuilding operations primarily in California, Washington, North Carolina, South Carolina, and Tennessee. The ongoing revenues in this segment are primarily from sales in UCP, although the Company does have other real estate holdings that could be sold from time to time.

Corporate

This segment consists of cash and fixed-income securities, the 19.3% voting interest in Mindjet, the Company’s oil and gas venture, which owns and operates oil and gas leases in the Wattenberg Field in Colorado, deferred compensation assets and liabilities held in trust for the benefit of several officers and non-employee directors of the Company, and other parent company assets and liabilities.

Discontinued Agribusiness Operations

On July 13, 2015, the Company entered into an agreement to sell substantially all of the assets used in its agribusiness segment for a net selling price of $105.3 million. The transaction closed on July 31, 2015.

Enterprise Software

The enterprise software segment was discontinued following Spigit’s merger with Mindjet, however, it will continue to be presented in historical periods as a segment.

Segment information by major operating segment follows (in thousands):

	Water Resources and Water Storage Operations	Real Estate Operations	Corporate	Discontinued Agribusiness Operations	Enterprise Software	Consolidated
2015

Total revenues (losses)	$	4,332		$	279,196		$	(16,865	)						$	266,663
Impairment loss on intangible and long-lived assets	$	269		$	1,197		$	1,816							$	3,282
Depreciation and amortization	$	1,037		$	552		$	623							$	2,212
Income (loss) from continuing operations before income taxes and equity in loss of unconsolidated affiliate	$	(3,858	)	$	6,394		$	(33,686	)						$	(31,150	)
Equity in loss of unconsolidated affiliate							$	(3,422	)						$	(3,422	)
Total assets	$	185,037		$	422,935		$	46,844		$	8,793				$	663,609
Capital expenditure	$	76		$	330		$	2,702							$	3,108
2014
Total revenues (losses)	$	1,580		$	191,440		$	(532	)						$	192,488
Interest expense	$	18					$	210							$	228
Impairment loss on intangible and long-lived assets	$	5,791		$	2,865		$	4,428							$	13,084
Depreciation and amortization	$	1,098		$	669		$	1,287							$	3,054
Loss from continuing operations before income taxes and equity in loss of unconsolidated affiliate	$	(12,584	)	$	(10,531	)	$	(23,854	)						$	(46,969	)
Equity in loss of unconsolidated affiliate							$	(2,076	)						$	(2,076	)
Total assets	$	186,294		$	384,855		$	80,741		$	152,554				$	804,444
Capital expenditure	$	230		$	1,004		$	4,036							$	5,270
2013
Total revenues	$	25,862		$	93,272		$	27,398				$	13,649		$	160,181
Interest expense	$	206					$	629				$	300		$	1,135
Impairment loss on intangible and long-lived assets	$	993		$	417										$	1,410
Depreciation and amortization	$	1,197		$	271		$	1,086				$	64		$	2,618
Income (loss) from continuing operations before income taxes and equity in loss of unconsolidated affiliate	$	(867	)	$	(4,442	)	$	8,423				$	(5,281	)	$	(2,167	)
Equity in loss of unconsolidated affiliate							$	(565	)						$	(565	)

Total assets	$	193,105	$	276,954	$	137,488	$	155,005	$	762,552
Capital expenditure	$	271	$	650	$	2,647			$	3,568