Reporting Segments and Related Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Reporting Segments and Related Information

REPORTING SEGMENTS AND RELATED INFORMATION

The Company currently operates five reporting segments: commercial/industrial real estate development, resort/residential real estate development, mineral resources, farming, and ranch operations. For further details of the revenue components within each reporting segment, see Results of Operations by Segment in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations".

Information pertaining to operating results of the Company's reporting segments are as follows for each of the years ended December 31:

($ in thousands)	2021		2020		2019
Revenues
Real estate—commercial/industrial	$	19,476	$	9,536	$	16,792
Mineral resources	20,987		10,736		9,791
Farming	11,039		13,866		19,331
Ranch operations	4,111		3,692		3,609
Segment revenues	55,613		37,830		49,523
Equity in unconsolidated joint ventures, net	9,202		4,504		16,575
Gain on sale of real estate	—		1,331		—
Investment income	57		884		1,239
Total revenues and other income	64,872		44,549		67,337
Segment Profits (Losses)
Real estate—commercial/industrial	7,523		2,414		3,831
Real estate—resort/residential	(1,723)		(1,612)		(2,247)
Mineral resources	7,428		4,322		3,973
Farming	(3,077)		(1,237)		4,080
Ranch operations	(568)		(1,204)		(1,707)
Segment profits (1)	9,583		2,683		7,930
Equity in unconsolidated joint ventures, net	9,202		4,504		16,575
Gain on sale of real estate	—		1,331		—
Investment income	57		884		1,239
Other income	164		110		(1,824)
Corporate expenses	(9,843)		(9,430)		(9,361)
Income from operations before income taxes	$	9,163	$	82	$	14,559
(1) Segment profits are revenues less operating expenses, excluding investment income and expense, corporate expenses, equity in earnings of unconsolidated joint ventures, and income taxes.

Real Estate - Commercial/Industrial

Commercial revenue consists of land and building leases to tenants at the Company's commercial retail and industrial developments, base and percentage rents from the PEF power plant lease, communication tower rents, land sales, and payments from easement leases.

During the second quarter of 2021, the Company contributed a 38.86 acre land parcel contributed with a fair value of $8,464,000 to TRC-MRC 4, LLC. The Company recognized revenues of $5,679,000 and deferred profit of $2,785,000 after applying the five-step revenue recognition model in accordance with ASC Topic 606 — Revenue From Contracts With Customers and ASC Topic 323, Investments — Equity Method and Joint Ventures.

During the fourth quarter of 2021, the Company sold 17.1 acres of land to a third party for $4,655,000. The Company recognized land sales revenue of $4,355,000 and deferred $300,000 attributable to a performance obligation within the contract after applying the five-step revenue recognition model in accordance with Accounting Standards Codification (ASC) Topic 606 - Revenue From Contracts With Customers.

In 2020, the Company sold building and land, previously belonging to this segment, that was previously operated by a fast food tenant to its joint venture, Petro Travel Plaza LLC. The Company received a cash distribution of $2,000,000 from the joint venture, and realized a Gain on Sale of Real Estate of $1,331,000.

The following table summarizes revenues, expenses and operating income from this segment for each of the years ended December 31:

($ in thousands)	2021		2020		2019
Commercial revenues	$	19,476	$	9,536	$	16,792
Equity in earnings of unconsolidated joint ventures	9,202		4,504		16,575
Commercial revenues and equity in earnings of unconsolidated joint ventures	$	28,678	$	14,040	$	33,367
Commercial expenses	11,953		7,122		12,961
Operating results from commercial and unconsolidated joint ventures	$	16,725	$	6,918	$	20,406

Real Estate - Resort/Residential

The resort/residential real estate development segment is actively involved in the land entitlement and development process internally and through joint venture entities. The segment produced losses of $1,723,000, $1,612,000, and $2,247,000 during the years ended December 31, 2021, 2020, and 2019, respectively.

Mineral Resources

The mineral resources segment receives oil and mineral royalties from the exploration and development companies that extract or mine the natural resources from the Company's land along with revenue from water sales. The following table summarizes revenues, expenses and operating results from this segment for each of the years ended December 31:

($ in thousands)	2021		2020		2019
Mineral resources revenues	$	20,987	$	10,736	$	9,791
Mineral resources expenses	$	13,559	$	6,414	$	5,818
Operating results from mineral resources	$	7,428	$	4,322	$	3,973

Farming

The farming segment produces revenues from the sale of wine grapes, almonds, pistachios and hay. The following table summarizes revenues, expenses and operating results from this segment for each of the years ended December 31:

($ in thousands)	2021		2020		2019
Farming revenues	$	11,039	$	13,866	$	19,331
Farming expenses	$	14,116	$	15,103	$	15,251
Operating results from farming	$	(3,077)	$	(1,237)	$	4,080

Ranch Operations

Ranch operations consists of game management revenues and ancillary land uses such as grazing leases and filming. The following table summarizes revenues, expenses and operating results from this segment for each of the years ended December 31:

($ in thousands)	2021		2020		2019
Ranch operations revenues	$	4,111	$	3,692	$	3,609
Ranch operations expenses	$	4,679	$	4,896	$	5,316
Operating results from ranch operations	$	(568)	$	(1,204)	$	(1,707)

Information pertaining to assets of the Company’s reporting segments is as follows for each of the years ended December 31: 

($ in thousands)	Identifiable Assets		Depreciation and Amortization		Capital Expenditures
2021
Real estate - commercial/industrial	$	82,397	$	463	$	4,906
Real estate - resort/residential	305,818		31		8,064
Mineral resources	52,440		1,368		—
Farming	47,160		1,789		7,416
Ranch operations	2,079		455		306
Corporate	56,142		488		187
Total	$	546,036	$	4,594	$	20,879
2020
Real estate - commercial/industrial	$	73,317	$	486	$	7,128
Real estate - resort/residential	297,052		39		9,764
Mineral resources	57,797		1,384		25
Farming	38,090		1,989		5,145
Ranch operations	2,442		482		91
Corporate	67,651		558		106
Total	$	536,349	$	4,938	$	22,259
2019
Real estate - commercial/industrial	$	76,814	$	517	$	8,690
Real estate - resort/residential	286,801		51		12,811
Mineral resources	55,049		1,371		37
Farming	41,258		1,909		3,362
Ranch operations	2,624		526		213
Corporate	76,876		662		109
Total	$	539,422	$	5,036	$	25,222

Identifiable assets by segment include both assets directly identified with those operations and an allocable share of jointly used assets. Corporate assets consist primarily of cash and cash equivalents, marketable securities, deferred income taxes, and land and buildings. Land is valued at cost for acquisitions since 1936. Land acquired in 1936, upon organization of the Company, is stated on the basis carried by the Company’s predecessor.