Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

18. Segment Information

The Company currently conducts primarily all of its business in five reportable operating segments: 1) residential real estate, 2) commercial real estate, 3) resorts, leisure and leasing operations, 4) forestry and 5) rural land. The residential real estate segment generates revenues from the development and sale of homesites. Commercial real estate segment sells undeveloped or developed land. Resorts, leisure and leasing operations generates service revenue and rental fees associated with the WaterColor Inn, WaterColor, WaterSound and WindMark Beach vacation rental programs and other resort, golf club, marina and leasing operations. Rural land sells parcels of land included in the Company’s holdings of timberlands. The forestry segment produces and sells woodfiber, sawtimber and other forest products.

The Company’s previous resorts and clubs operating business currently meets the qualitative and quantitative factors as a reportable operating segment; therefore, the Company has changed its segment presentation to include resorts, leisure and leasing operations as a reportable segment. This segment includes the Company’s previous resorts and clubs financial information, which was previously presented in residential real estate. It also includes our leasing operations, which were previously presented in both our residential real estate and Commercial real estate segments. The Company has combined the leasing operations with resorts and leisure because they are all reported as recurring revenue streams. All prior year segment information has been restated to conform with the 2012 presentation. The change in reportable segments has no effect on the Company’s consolidated financial position, results of operations or cash flows for the periods presented.

The Company uses income (loss) from operations before equity in loss from unconsolidated affiliates, 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 above in Note 2, Significant Accounting Policies. Total revenues represent sales to unaffiliated customers, as reported in the Company’s Consolidated Statements of Operations. All intercompany transactions have been eliminated. The caption entitled “Other” consists of non-allocated corporate general and administrative expenses, net of investment income.

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.

Information by business segment is as follows:

	2012			2011			2010
OPERATING REVENUES:
Residential real estate	$	22,115		$	12,595		$	8,960
Commercial real estate		10,400			3,778			4,416
Resorts, leisure and leasing operations		44,407			38,239			31,448
Rural land		23,413			3,472			24,430
Forestry		38,977			86,703			28,841
Other		84			498			1,445
Consolidated operating revenues	$	139,396		$	145,285		$	99,540
DEPRECIATION, DEPLETION AND AMORTIZATION:
Residential real estate	$	1,802		$	2,457		$	2,883
Commercial real estate		308			302			—
Resorts, leisure and leasing operations		5,714			6,924			7,158
Rural land		11			20			32
Forestry		2,105			4,950			2,099
Other		170			1,187			1,485
Consolidated depreciation, depletion and amortization	$	10,110		$	15,840		$	13,657
INVESTMENT INCOME, NET
Residential real estate	$	45		$	63		$	116
Other reportable segments		23			39			712
Corporate		1,151			1,028			642
Consolidated investment income, net	$	1,219		$	1,130		$	1,470
INTEREST EXPENSE
Residential real estate	$	2,802		$	3,555		$	7,815
Commercial and other		18			366			797
Consolidated interest expense	$	2,820		$	3,921		$	8,612
EQUITY IN LOSS FROM UNCONSOLIDATED AFFILIATES
Resorts, leisure and leasing operations	$	(46	)	$	(93	)	$	(4,308	)
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN LOSS FROM UNCONSOLIDATED AFFILIATES AND INCOME TAXES:
Residential real estate(a)	$	(6,772	)	$	(355,080	)	$	(37,933	)
Commercial real estate(b)		(271	)		(42,516	)		(1,813	)
Resorts, leisure and leasing operations(c)		(1,414	)		(8,020	)		(9,174	)
Rural land(d)		16,791			2,158			20,920
Forestry		13,475			59,092			6,437
Other(e)		(15,386	)		(41,507	)		(33,883	)
Consolidated income (loss) from operations before equity in loss from unconsolidated affiliates and income taxes	$	6,423		$	(385,873	)	$	(55,446	)

(a) Includes impairment losses of $337.6 million and $4.8 million in 2011 and 2010, respectively.

(b) Includes impairment losses of $38.2 million in 2011.

(c) Includes impairment losses of $2.6 million and $1.4 million in 2012 and 2011, respectively.

(d) Includes impairment losses of $0.1 million in 2011.

(e) Includes pension charges of $2.1 million, $5.9 million and $4.1 million in 2012, 2011 and 2010, respectively.

	2012		2011		2010
CAPITAL EXPENDITURES:
Residential real estate	$	7,679	$	12,023	$	6,825
Commercial real estate		3,829		11,833		7,002
Resorts, leisure and leasing operations		9,023		4,007		1,340
Forestry		2,701		2,766		785
Other		163		93		112
Total capital expenditures	$	23,395	$	30,722	$	16,064

	December 31, 2012		December 31, 2011
TOTAL ASSETS:
Residential real estate	$	141,526	$	166,201
Commercial real estate		64,961		73,520
Resorts, leisure and leasing operations(f)		124,886		100,396
Rural land		6,219		7,885
Forestry		54,549		58,638
Other		253,380		254,651
Total assets	$	645,521	$	661,291

(f) Includes $2.2 million and $2.3 million of investment in equity method investees at December 31, 2012 and 2011, respectively.