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.

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 equity in loss from unconsolidated affiliates, income taxes and non-controlling interest, cash flows 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 revenue, title fee revenue and corporate operating and general and administrative expenses, net of investment income.

Information by business segment is as follows:



	Year Ended December 31,
	2019		2018		2017
Operating revenue:
Residential real estate (a)	$	41,586	$	43,266	$	22,248
Hospitality		45,720		39,576		54,319
Commercial leasing and sales		22,458		16,485		14,510
Forestry revenue		16,365		8,135		8,443
Other (b)		956		2,814		518
Consolidated operating revenue	$	127,085	$	110,276	$	100,038

Cost of revenue:
Cost of residential real estate revenue	$	20,492	$	10,215	$	12,971
Cost of hospitality revenue		33,924		33,385		47,300
Cost of commercial leasing and sales revenue		8,549		6,397		5,979
Cost of forestry revenue		1,044		1,097		903
Cost of other revenue		77		223		41
Consolidated cost of revenue	$	64,086	$	51,317	$	67,194

Other operating and corporate expenses:
Residential real estate	$	4,873	$	4,717	$	4,329
Hospitality		838		533		462
Commercial leasing and sales		3,052		3,183		3,444
Forestry		427		384		396
Other		12,199		11,740		11,751
Consolidated other operating and corporate expenses	$	21,389	$	20,557	$	20,382

Depreciation, depletion and amortization:
Residential real estate	$	283	$	288	$	363
Hospitality		4,579		3,640		4,049
Commercial leasing and sales		4,939		4,411		3,729
Forestry		314		514		575
Other		172		145		169
Consolidated depreciation, depletion and amortization	$	10,287	$	8,998	$	8,885

Investment income, net:
Residential real estate and other	$	184	$	320	$	89
Corporate (c)		10,530		11,830		35,321
Consolidated investment income, net	$	10,714	$	12,150	$	35,410

Interest expense:
Residential real estate	$	717	$	867	$	1,164
Commercial leasing and sales		2,739		2,180		2,200
Corporate and other (d)		8,846		8,793		8,781
Consolidated interest expense	$	12,302	$	11,840	$	12,145

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

Income (loss) before equity in loss from unconsolidated affiliates and income taxes:
Residential real estate (a)	$	15,144	$	26,919	$	3,683
Hospitality		6,574		1,817		12,664
Commercial leasing and sales		6,632		(121)		(836)
Forestry		14,607		6,222		6,586
Other		(6,772)		(3,971)		19,258
Consolidated income before equity in loss from unconsolidated affiliates and income taxes	$	36,185	$	30,866	$	41,355

Equity in loss from unconsolidated affiliates
Residential real estate	$	(71)	$	—	$	—
Commercial leasing and sales		(6)		—		—
Consolidated equity in loss from unconsolidated affiliates	$	(77)	$	—	$	—

Capital expenditures:
Residential real estate	$	28,639	$	15,865	$	8,407
Hospitality		15,923		7,400		4,918
Commercial leasing and sales		67,254		20,483		25,248
Forestry		1,965		1,069		1,100
Other		505		379		207
Total capital expenditures	$	114,286	$	45,196	$	39,880


	December 31,		December 31,
	2019		2018
Total assets:
Residential real estate	$	139,349	$	127,999
Hospitality		89,570		68,389
Commercial leasing and sales		232,715		182,658
Forestry		21,221		20,189
Other		426,378		471,727
Total assets	$	909,233	$	870,962

(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 2019, 2018 and 2017.

(d)

Includes interest expense from Senior Notes issued by SPE of $8.8 million in each 2019, 2018 and 2017.

(e)

Includes a net gain of $9.8 million from the PCR Rentals sale in 2017. See Note 8. Sale of Vacation Rental Management.