Segment Information

The Company conducts primarily all of its business in the following five reportable operating segments: (1) residential real estate, (2) commercial real estate, (3) resorts and leisure, (4) leasing and (5) forestry.

The residential real estate segment generates revenue from the development and sale of homes and homesites and the sale of parcels of entitled, undeveloped land. The commercial real estate segment sells undeveloped or developed land and commercial operating property. The resort and leisure segment generates revenue and incurs costs from the WaterColor Inn and Resort, the vacation rental program, management of The Pearl Hotel, membership sales, membership reservations, restaurants, four golf courses, a beach club, marina operations and other related resort activities. The leasing segment generates revenue and costs from leasing retail, office and commercial property, cell towers and other assets. Leasing operations include properties located in the Company’s Beckrich Office Park, consolidated Pier Park North JV and Windmark JV, as well as the Company’s industrial park, VentureCrossings and other properties. The forestry segment produces and sells pulpwood, sawtimber and other forest products and may sell the Company’s timber or rural land holdings.

The Company’s reportable segments are strategic business units that offer different products and services. They are each managed separately and decisions about allocations of resources are determined by management based on these strategic business units.

The Company uses income before income taxes and non-controlling interest for purposes of making decisions about allocating resources to each segment and assessing each segment’s performance, which the Company believes represents current performance measures.

The accounting policies of the segments are set forth in Note 2 to the Company’s consolidated financial statements contained in Item 15 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Total revenue represents sales to unaffiliated customers, as reported in the Company’s condensed consolidated statements of income. All significant intercompany accounts and transactions have been eliminated in consolidation. The caption entitled “Other” consists of mitigation credit and title fee revenue and non-allocated corporate general and administrative expenses, net of investment income.

Information by business segment is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Operating revenue:
Residential real estate	$	9,411		$	3,122		$	15,391		$	15,905
Commercial real estate	446			631			2,624			631
Resorts and leisure	18,198			19,046			45,633			47,590
Leasing operations	2,847			2,655			7,884			7,336
Forestry	2,562			1,509			5,236			5,233
Other	190			229			467			302
Total operating revenue	$	33,654		$	27,192		$	77,235		$	76,997

Income (loss) before income taxes:
Residential real estate	$	1,802		$	237		$	3,026		$	4,676
Commercial real estate	(466		)	(496		)	(1,115		)	(1,644		)
Resorts and leisure	2,916			2,420			4,521			3,414
Leasing operations	302			454			814			75
Forestry	2,437			1,282			4,808			4,376
Other	1,793			(253		)	19,720			7,103
Total income before income taxes	$	8,784		$	3,644		$	31,774		$	18,000



	September 30, 2017		December 31, 2016
Total Assets:
Residential real estate	$	115,758	$	112,220
Commercial real estate	58,134		60,150
Resorts and leisure	77,000		73,436
Leasing operations	107,986		80,863
Forestry	20,089		20,664
Other	540,719		680,612
Total assets	$	919,686	$	1,027,945