Segment Information

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

In prior periods, the Company’s reportable operating segments were 1) residential real estate, 2) commercial real estate, 3) resorts and leisure 4) leasing operations and 5) forestry. Commencing in the fourth quarter of 2017, the Company’s commercial real estate segment and leasing operations segment were combined into a new segment titled “commercial leasing and sales”. This change is consistent with the Company’s belief that the decision making and management of the assets in these segments are being made as one group. Prior to the fourth quarter of 2017, commercial real estate and leasing operations were treated as individual operating segments. All prior years’ segment information has been reclassified to conform to the 2017 presentation. The change in reporting segments has no effect on the consolidated balance sheets, statements of operations, statements of comprehensive income (loss) or statements of cash flows for the periods presented.

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 (loss) 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 the same as those described herein. Total revenue represents sales to unaffiliated customers, as reported in the Company’s consolidated statements of operations. All significant intercompany 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:



	2017		2016		2015
OPERATING REVENUE:
Residential real estate	$	21,747	$	19,483	$	21,137
Resorts and leisure	54,820		57,284		54,488
Commercial leasing and sales	14,510		11,929		16,138
Forestry revenue	7,201		6,673		12,042
Other	518		375		66
Consolidated operating revenue	$	98,796	$	95,744	$	103,871

COST OF REVENUE:
Cost of residential real estate revenue	$	12,455	$	6,383	$	10,853
Cost of resorts and leisure revenue	47,816		50,229		47,069
Cost of commercial leasing and sales revenue	5,979		4,431		7,766
Cost of forestry revenue	903		1,121		1,402
Cost of other revenue	41		30		4
Consolidated cost of revenue	$	67,194	$	62,194	$	67,094

OTHER OPERATING AND CORPORATE EXPENSES:
Residential real estate	$	4,297	$	5,744	$	10,215
Resorts and leisure	494		547		426
Commercial leasing and sales	3,444		3,492		3,031
Forestry revenue	396		530		941
Other	11,751		12,706		18,813
Consolidated other operating and corporate expenses	$	20,382	$	23,019	$	33,426

DEPRECIATION, DEPLETION AND AMORTIZATION:
Residential real estate	$	187	$	286	$	544
Resorts and leisure	4,225		4,402		5,096
Commercial leasing and sales	3,729		3,137		3,118
Forestry	575		552		581
Other	169		194		147
Consolidated depreciation, depletion and amortization	$	8,885	$	8,571	$	9,486

INVESTMENT INCOME, NET
Residential real estate and other	$	89	$	97	$	571
Corporate ^(a)	35,321		17,679		22,117
Consolidated investment income, net	$	35,410	$	17,776	$	22,688



	2017			2016			2015
INTEREST EXPENSE
Residential real estate	$	(1,164	)	$	(1,284	)	$	(1,174	)
Commercial leasing and sales	(2,200		)	(2,169		)	(1,489		)
Corporate ^(b)	(8,781		)	(8,842		)	(8,766		)
Consolidated interest expense	$	(12,145	)	$	(12,295	)	$	(11,429	)

SALE OF VACATION RENTAL MANAGEMENT, NET
Resorts and leisure ^(c)	$	9,800		$	—		$	—
Consolidated sale of vacation rental management, net	$	9,800		$	—		$	—

INCOME (LOSS) BEFORE INCOME TAXES:
Residential real estate	$	3,903		$	5,887		$	(821	)
Resorts and leisure ^(c)	12,444			2,087			1,819
Commercial leasing and sales	(836		)	(1,233		)	802
Forestry	6,586			5,609			10,259
Corporate ^(a)(b)	19,258			10,261			(13,222		)
Consolidated income (loss) before income taxes	$	41,355		$	22,611		$	(1,163	)



	2017		2016		2015
CAPITAL EXPENDITURES:
Residential real estate	$	8,407	$	3,319	$	4,923
Resorts and leisure	4,918		1,287		2,526
Commercial leasing and sales	25,248		6,836		8,014
Forestry	1,100		1,095		1,366
Other	207		321		636
Total capital expenditures	$	39,880	$	12,858	$	17,465



	December 31, 2017		December 31, 2016
TOTAL ASSETS:
Residential real estate	$	117,732	$	112,220
Resorts and leisure	83,151		73,436
Commercial leasing and sales	163,271		141,013
Forestry	20,212		20,664
Other	536,627		680,612
Total assets	$	920,993	$	1,027,945



(a)	Includes interest income from investments in SPEs of $8.2 million in each 2017, 2016 and 2015.
(b)	Includes interest expense from Senior Notes issued by SPE of $8.8 million in each 2017, 2016 and 2015.
(c)	Includes proceeds of $9.9 million, which resulted in a net gain of $9.8 million from the PCR Rentals sale in 2017. See Note 7. Sale of Vacation Rental Management.