Segment Reporting

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

PICO Holdings, Inc. is a diversified holding company. The goal of the Company is to build and operate businesses where significant value can be created from the development of unique assets, and to acquire businesses which have been identified as undervalued and where its participation can aid in the recognition of the business’s fair value. The Company accounts for its segments consistent with the significant accounting policies described in Note 1.

The Company organizes its reportable segments by line of business. Currently, the major businesses that constitute operating and reportable segments are developing water resources and water storage operations, developing land and homebuilding, operating a canola seed processing plant, and the acquisition and financing of businesses.

Segment performance is measured by revenues and segment profit before income tax.  In addition, assets identifiable with segments are disclosed as well as capital expenditures, and depreciation and amortization.  The Company has operations and investments both in the U.S. and abroad.  Any information by geographic region is based upon the location of the subsidiary.  Consequently, any international revenues in the Company’s segment information by significant geographic region are revenues earned by the foreign subsidiary. The Company’s reported revenue for the three years ended December 31, 2014 was earned in the United States and therefore no geographic region disclosure is presented.

Water Resources and Water Storage Operations

The Company is engaged in the development of water for end-users in the southwestern United States, namely water utilities, municipalities, developers, or industrial users.  Typically, the source of water is from identifying and developing a new water supply, or a change in the use of an existing water supply from agricultural to municipal and industrial; and operating water storage facilities for the purchase and recharge of water for resale in future periods, and distribution infrastructure to more efficiently use existing and new supplies of water.

Real Estate Operations

The Company is engaged in land development and homebuilding operations primarily in California, Washington, North Carolina, South Carolina, and Tennessee. The ongoing revenues in this segment are primarily from sales in UCP, although the Company does have other real estate holdings that could be sold from time to time.

Agribusiness Operations

The Company is engaged in agribusiness operations through its canola seed processing plant in Hallock, Minnesota.  Currently, the plant has an expected average crushing capacity of 1,400 tons per day. The majority of total revenue in this segment in each period is from transactions with one major customer.

Corporate

This segment consists of cash and fixed-income securities, the 28.4% voting interest in Mindjet, the Company’s oil and gas venture, which owns and operates oil and gas leases in the Wattenberg Field in Colorado, deferred compensation assets and liabilities held in trust for the benefit of several officers and non-employee directors of the Company, and other parent company assets and liabilities.

Enterprise Software

The enterprise software segment was discontinued following Spigit’s merger with Mindjet, however, it will continue to be presented in historical periods as a segment.

Segment information by major operating segment follows (in thousands):

	Water Resources and Water Storage Operations			Real Estate Operations			Agribusiness Operations			Corporate			Enterprise Software			Consolidated
2014
Total revenues (losses)	$	1,580		$	191,440		$	162,408		$	(532	)				$	354,896
Interest expense	$	18					$	5,536		$	210					$	5,764
Impairment loss on intangible and long-lived assets	$	5,791		$	2,865					$	4,428					$	13,084
Depreciation and amortization	$	1,098		$	669		$	179		$	1,287					$	3,233
Loss from continuing operations before income taxes and equity in loss of unconsolidated affiliate	$	(12,584	)	$	(10,531	)	$	(14,074	)	$	(23,854	)				$	(61,043	)
Equity in loss of unconsolidated affiliate										$	(2,076	)				$	(2,076	)
Total assets	$	186,294		$	384,855		$	152,554		$	80,741					$	804,444
Capital expenditure	$	230		$	1,004		$	6,387		$	4,036					$	11,657
2013
Total revenues	$	25,862		$	93,272		$	184,648		$	27,398		$	13,649		$	344,829
Interest expense	$	206					$	5,746		$	629		$	300		$	6,881
Impairment loss on intangible and long-lived assets	$	993		$	417											$	1,410
Depreciation and amortization	$	1,197		$	271		$	147		$	1,086		$	64		$	2,765
Income (loss) from continuing operations before income taxes and equity in loss of unconsolidated affiliate	$	(867	)	$	(4,442	)	$	(23,265	)	$	8,423		$	(5,281	)	$	(25,432	)
Equity in loss of unconsolidated affiliate										$	(565	)				$	(565	)
Total assets	$	193,105		$	276,954		$	155,005		$	137,488					$	762,552
Capital expenditure	$	271		$	650		$	1,156		$	2,647					$	4,724
2012
Total revenues	$	3,096		$	59,066		$	85,305		$	2,614					$	150,081
Interest expense	$	54		$	1,017		$	2,654		$	428					$	4,153
Depreciation and amortization	$	1,325		$	147		$	284		$	211					$	1,967
Income (loss) from continuing operations before income taxes and equity in loss of unconsolidated affiliate	$	(6,279	)	$	2,487		$	(12,654	)	$	(13,132	)				$	(29,578	)
Total assets	$	210,189		$	145,978		$	165,961		$	145,046					$	667,174
Capital expenditure	$	547		$	505		$	31,579		$	287					$	32,918