21. Segment Information

The Company currently conducts primarily all of its business in the following four operating segments: 1) residential real estate, 2) hospitality, 3) commercial leasing and sales and 4) forestry. Prior to the fourth quarter of 2017, commercial real estate and leasing operations were treated as individual operating segments. See Note 1. Nature of Operations for additional information.

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 and other measures 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 income. 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:



	Year Ended December 31,
	2018		2017		2016
Operating revenue:
Residential real estate (a)	$	42,869	$	21,747	$	19,483
Hospitality		39,973		54,820		57,284
Commercial leasing and sales		16,485		14,510		11,929
Forestry revenue		8,135		8,443		7,791
Other (b)		2,814		518		375
Consolidated operating revenue	$	110,276	$	100,038	$	96,862

Cost of revenue:
Cost of residential real estate revenue	$	9,775	$	12,455	$	6,383
Cost of hospitality revenue		33,825		47,816		50,229
Cost of commercial leasing and sales revenue		6,397		5,979		4,431
Cost of forestry revenue		1,097		903		1,121
Cost of other revenue		223		41		30
Consolidated cost of revenue	$	51,317	$	67,194	$	62,194

Other operating and corporate expenses:
Residential real estate	$	4,695	$	4,297	$	5,744
Hospitality		555		494		547
Commercial leasing and sales		3,183		3,444		3,492
Forestry		384		396		530
Other		11,740		11,751		12,706
Consolidated other operating and corporate expenses	$	20,557	$	20,382	$	23,019

Depreciation, depletion and amortization:
Residential real estate	$	167	$	187	$	286
Hospitality		3,761		4,225		4,402
Commercial leasing and sales		4,411		3,729		3,137
Forestry		514		575		552
Other		145		169		194
Consolidated depreciation, depletion and amortization	$	8,998	$	8,885	$	8,571

Investment income, net:
Residential real estate and other	$	320	$	89	$	97
Corporate (c)		11,830		35,321		17,679
Consolidated investment income, net	$	12,150	$	35,410	$	17,776

Interest expense:
Residential real estate	$	(867)	$	(1,164)	$	(1,284)
Commercial leasing and sales		(2,180)		(2,200)		(2,169)
Corporate and other (d)		(8,793)		(8,781)		(8,842)
Consolidated interest expense	$	(11,840)	$	(12,145)	$	(12,295)

Sale of vacation rental management, net:
Hospitality (e)	$	—	$	9,800	$	—
Consolidated sale of vacation rental management, net	$	—	$	9,800	$	—

Income (loss) before income taxes:
Residential real estate (a)	$	27,084	$	3,903	$	5,887
Hospitality (e)		1,652		12,444		2,087
Commercial leasing and sales		(121)		(836)		(1,233)
Forestry		6,222		6,586		5,609
Corporate (b) (c) (d)		(3,971)		19,258		10,261
Consolidated income before income taxes	$	30,866	$	41,355	$	22,611

Capital expenditures:
Residential real estate	$	15,865	$	8,407	$	3,319
Hospitality		7,400		4,918		1,287
Commercial leasing and sales		20,483		25,248		6,836
Forestry		1,069		1,100		1,095
Other		379		207		321
Total capital expenditures	$	45,196	$	39,880	$	12,858


	December 31,		December 31,
	2018		2017
Total assets:
Residential real estate	$	125,642	$	117,732
Hospitality		70,746		83,151
Commercial leasing and sales		182,658		163,271
Forestry		20,189		20,212
Other		471,727		536,627
Total assets	$	870,962	$	920,993

(a)

Includes revenue of $23.1 million in 2018 for a one-time receipt of RiverTown impact fees related to the 2014 RiverTown transaction. See Note 19. RiverTown Impact Fees.

(b)

Includes revenue of $2.2 million in 2018 related to a specific sale of mitigation bank credits.

(c)

Includes interest income from investments in SPEs of $8.2 million in each 2018, 2017 and 2016.

(d)

Includes interest expense from Senior Notes issued by SPE of $8.8 million in each 2018, 2017 and 2016.

(e)

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 8. Sale of Vacation Rental Management.