Business Segments

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

We currently operate in four business segments: commercial/industrial real estate development; resort/residential real estate development; mineral resources; and farming.

Information pertaining to operating results of the Company's business segments follows for each of the years ended December 31 are as follows:

	2013			2012			2011
Revenues
Real estate—commercial/industrial	$	15,213		$	12,518		$	14,665
Real estate—resort/residential	1,207			541			16,131
Mineral resources (1)	10,242			14,012			12,206
Farming	22,682			22,553			21,012
Segment revenues	49,344			49,624			64,014
Investment income	941			1,242			1,260
Other income	66			113			98
Total revenues and other income	$	50,351		$	50,979		$	65,372
Segment Profits (Losses)
Real estate—commercial/industrial	$	2,311		$	247		$	1,444
Real estate—resort/residential	(2,144		)	(4,220		)	12,189
Mineral resources (1)	9,780			13,678			11,997
Farming	7,876			9,230			8,437
Segment profits (2)	17,823			18,935			34,067
Investment income	941			1,242			1,260
Other income	66			113			98
Interest expense	—			(12		)	—
Corporate expenses	(12,641		)	(13,272		)	(12,277		)
Income from operations before income taxes	$	6,189		$	7,006		$	23,148

(1) During the fourth quarter of 2012, the Company evaluated its operations and determined that an additional segment should be reported, Mineral Resources. Mineral Resources collects royalty income from oil and gas leases, rock and aggregate leases, and from a cement company.

(2) Segment profits are revenues from operations less operating expenses, excluding investment income and expense, corporate expenses, equity in earnings of unconsolidated joint ventures, and income taxes.

The revenue components of the commercial/industrial real estate segment for the years ended December 31 are as follows:

(In thousands)	2013		2012		2011
Commercial leases	$	6,799	$	6,095	$	5,450
Grazing leases	1,433		1,331		1,087
Land Sale	—		648		4,340
All other land management ancillary services	2,916		1,867		2,869
	11,148		9,941		13,746
Equity in earnings of unconsolidated joint ventures	4,065		2,577		919
Revenues and equity in earnings of unconsolidated joint ventures	$	15,213	$	12,518	$	14,665

Commercial lease revenue consists of land and building leases to tenants at our commercial retail and industrial developments, base and percentage rents from our Calpine power plant lease, communication tower rents, and payments from easement leases. Land management ancillary services include wildlife management, landscape and property maintenance, and building management services. During the first eight months of 2012, the Company’s game management operations were temporarily suspended in order to complete the development of a new sales program and operating procedures. Please refer to Form 8-K filed on January 20, 2012 regarding the Company’s game management and hunting operations. Game management reopened operations on September 1, 2012.

The resort/residential real estate land development segment produces revenues from farming activities, such as hay sales, within the Centennial Founders, LLC and is actively involved in the land entitlement and pre-development process. The farming segment produces revenues from the sale of wine grapes, almonds and pistachios.

The revenue components of the resort/residential real estate land development segment for the year ended December 31 are as follows:

(In thousands)	2013			2012			2011
Hay sales - Centennial operations	$	928		$	583		$	380
Management fees	312			—			4
Conservation easements	—			—			15,750
Other	26			—			—
	1,266			583			16,134
Equity in earnings of unconsolidated joint ventures	(59		)	(42		)	(3		)
Revenues and equity in earnings of unconsolidated joint ventures	$	1,207		$	541		$	16,131

The mineral resources segment receives oil and mineral royalties from the exploration and development companies that extract or mine the natural resources from our land. Revenues from our mineral resources segment decreased $3,770,000, or 27%, to $10,242,000 during 2013 compared to 2012, primarily due to a $3,401,000 decrease in oil royalty revenues. The 29% decrease in production was the result of temporary closures of existing wells for maintenance, expansion of production facilities, and regulatory permitting management, which reduced the number of new wells being drilled. In addition, the price per barrel of oil decreased by 3% when compared to the 2012. The following table summarizes these activities for each of the years ended December 31:

($ in thousands)	2013		2012		2011
Oil and gas	$	7,810	$	11,075	$	9,876
Rock aggregate	964		920		886
Cement	819		758		621
Land lease for oil exploration	648		1,257		811
Other	1		2		12
	$	10,242	$	14,012	$	12,206

Information pertaining to assets of the Company’s business segments is as follows for each of the years ended December 31:

($ in thousands)	Identifiable Assets		Depreciation and Amortization		Capital Expenditures
2013
Real estate - commercial/industrial	$	58,390	$	1,205	$	12,296
Real estate - resort/residential	124,568		78		2,957
Mineral resources	1,063		—		—
Farming	31,925		1,465		5,733
Corporate	126,933		1,478		572
Total	$	342,879	$	4,226	$	21,558
2012
Real estate - commercial/industrial	$	57,151	$	1,852	$	11,672
Real estate - resort/residential	118,627		77		4,479
Mineral resources	1,449		—		—
Farming	29,538		1,384		3,379
Corporate	121,091		1,238		1,139
Total	$	327,856	$	4,551	$	20,669
2011
Real estate - commercial/industrial	$	56,552	$	1,111	$	4,155
Real estate - resort/residential	110,147		96		7,132
Mineral resources	1,193		—		—
Farming	24,326		1,293		1,477
Corporate	129,758		1,097		885
Total	$	321,976	$	3,597	$	13,649

Segment profits (losses) are total revenues less operating expenses, excluding interest income, corporate expenses and interest expense. Identifiable assets by segment include both assets directly identified with those operations and an allocable share of jointly used assets. Corporate assets consist primarily of cash and cash equivalents, marketable securities, deferred income taxes, and land and buildings. Land is valued at cost for acquisitions since 1936. Land acquired in 1936, upon organization of the Company, is stated on the basis carried by the Company’s predecessor. During the first quarter of 2011, the Company completed the sale of five conservation easements totaling approximately 62,000 acres for $15,750,000. These easements were sold to the Tejon Ranch Conservancy, an independent non-profit organization.