Business Segments

12 Months Ended

Dec. 31, 2014

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:

($ in thousands)	2014			2013			2012
Revenues
Real estate—commercial/industrial	$	16,708		$	15,213		$	12,518
Real estate—resort/residential	148			279			(42		)
Mineral resources (1)	16,255			10,242			14,012
Farming	23,435			23,610			23,136
Segment revenues	56,546			49,344			49,624
Investment income	696			941			1,242
Other income	343			66			113
Total revenues and other income	$	57,585		$	50,351		$	50,979
Segment Profits (Losses)
Real estate—commercial/industrial	$	3,504		$	2,311		$	247
Real estate—resort/residential	(2,460		)	(1,952		)	(3,739		)
Mineral resources (1)	9,837			8,965			12,970
Farming	7,185			7,684			8,749
Segment profits (2)	18,066			17,008			18,227
Investment income	696			941			1,242
Other income	343			66			113
Interest expense	—			—			(12		)
Corporate expenses	(10,646		)	(11,826		)	(12,564		)
Income from operations before income taxes	$	8,459		$	6,189		$	7,006

(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 plus equity in earnings of unconsolidated joint ventures, less operating expenses, excluding investment income and expense, corporate expenses, and income taxes.

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

($ in thousands)	2014		2013		2012
Commercial leases and related fees	$	6,156	$	6,799	$	6,095
Grazing leases	1,155		1,433		1,331
Land sale	508		—		648
All other land management ancillary services	3,560		2,916		1,867
	11,379		11,148		9,941
Equity in earnings of unconsolidated joint ventures	5,329		4,065		2,577
Revenues and equity in earnings of unconsolidated joint ventures	$	16,708	$	15,213	$	12,518

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 management fees and is actively involved in the land entitlement and pre-development process.

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

($ in thousands)	2014			2013			2012
Management fees	180			312			—
Other	3			26			—
	183			338			—
Equity in earnings of unconsolidated joint ventures	(35		)	(59		)	(42		)
Revenues and equity in earnings of unconsolidated joint ventures	$	148		$	279		$	(42	)

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 and receives revenue from water sales. Revenues from our mineral resources segment decreased $6,013,000, or 59%, to $16,255,000 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)	2014		2013		2012
Oil and gas	$	6,096	$	7,810	$	11,075
Rock aggregate	1,216		964		920
Cement	1,043		819		758
Land lease for oil exploration	198		648		1,257
Water sales	7,702		—		—
Other	—		1		2
	$	16,255	$	10,242	$	14,012

The farming segment produces revenues from the sale of wine grapes, almonds, pistachios and hay. The revenue components of the farming segment was as follows for each of the year ended December 31:

	2014		2013		2012
Almonds	$	10,036	$	10,857	$	8,898
Pistachios	7,585		7,537		8,644
Wine grapes	3,978		4,094		5,136
Hay	1,361		928		583
Total crop proceeds	22,960		23,416		23,261
Other farming revenues	475		194		(125		)
Total farming revenues	$	23,435	$	23,610	$	23,136

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
2014
Real estate - commercial/industrial	$	80,646	$	1,098	$	8,952
Real estate - resort/residential	199,528		76		10,214
Mineral resources	47,434		1,351		—
Farming	34,464		1,633		4,701
Corporate	70,043		713		908
Total	$	432,115	$	4,871	$	24,775
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		1,587		3,379
Corporate	121,091		1,438		1,139
Total	$	327,856	$	4,954	$	20,669

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.