Business Segments

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Business Segments

SEGMENTS AND RELATED INFORMATION

We currently operate in five reporting segments: commercial/industrial real estate development, resort/residential real estate development, mineral resources, farming, and ranch operations.

Information pertaining to operating results of the Company's reporting segments are as follows:

($ in thousands)	December 31, 2016			December 31, 2015			December 31, 2014
Revenues
Real estate—commercial/industrial (1)	$	9,438		$	8,272		$	7,845
Mineral resources	14,153			15,116			16,255
Farming (2)	18,648			23,836			23,435
Ranch operations (1)	3,338			3,923			3,534
Segment revenues	45,577			51,147			51,069
Equity in unconsolidated joint ventures, net	7,098			6,324			5,294
Gain on sale of real estate	1,044			—			—
Investment income	457			528			696
Other income	158			381			526
Total revenues and other income	54,334			58,380			57,585
Segment Profits (Losses)
Real estate—commercial/industrial (1)	2,338			1,578			639
Real estate—resort/residential (2)	(1,630		)	(2,349		)	(2,608		)
Mineral resources	6,357			7,720			9,837
Farming (2)	(25		)	4,852			7,185
Ranch operations (1)	(2,396		)	(2,189		)	(2,464		)
Segment profits (3)	4,644			9,612			12,589
Equity in unconsolidated joint ventures, net	7,098			6,324			5,294
Gain on sale of real estate	1,044			—			—
Investment income	457			528			696
Other income	158			381			526
Corporate expenses	(12,550		)	(12,808		)	(10,646		)
Income from operations before income taxes	$	851		$	4,037		$	8,459
(1) During the fourth quarter of 2015, the Company reclassified revenues and expenses previously classified as commercial/industrial into a new segment called Ranch Operations. Ranch operations is comprised of grazing leases, game management and other ancillary services supporting the ranch.
(2) During the fourth quarter of 2014, the Company determined hay crop sales previously recorded in the resort/residential segment revenues fit most appropriately with our farming segment revenues. The Company has reclassified prior periods to conform to the current year presentation.
(3) Segment profits are revenues 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)	2016		2015		2014
Pastoria Energy Facility Lease	$	3,612	$	3,694	$	3,445
Tejon Ranch Commerce Center	2,014		1,567		908
Commercial leases	1,587		1,368		1,021
Communication leases	806		784		782
Landscaping and other	709		859		1,181
Land Sale	710		—		508
Total commercial revenues	$	9,438	$	8,272	$	7,845
Equity in earnings of unconsolidated joint ventures	7,098		6,324		5,294
Commercial revenues & equity in earnings of unconsolidated joint ventures	$	16,536	$	14,596	$	13,139

Commercial lease revenue consists of land and building leases to tenants at our commercial retail and industrial developments, base and percentage rents from our PEF power plant lease, communication tower rents, and payments from easement leases. On November 2016, we sold building and land, that was part of our commercial segment, located in Rancho Santa Fe California for $4,700,000, recognizing a gain of $1,044,000, which is not included in the numbers above.

The resort/residential real estate development segment is actively involved in the land entitlement and development process internally and through joint venture entities. The segment produced losses of $1,630,000, $2,349,000, and $2,608,000 during the years ended December 31, 2016, 2015, and 2014, respectively.

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. The following table summarizes these activities for each of the years ended December 31:

($ in thousands)	2016		2015		2014
Oil and gas	$	1,549	$	2,661	$	6,096
Rock aggregate	1,164		870		1,216
Cement	1,299		1,263		1,043
Land lease for oil exploration	176		157		198
Water sales	9,601		10,165		7,702
Reimbursable costs	364		—		—
Total mineral resources revenues	$	14,153	$	15,116	$	16,255

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

($ in thousands)	2016		2015		2014
Almonds	$	7,373	$	12,238	$	10,036
Pistachios	6,199		6,425		7,585
Wine grapes	3,744		4,338		3,978
Hay	520		749		1,361
Total crop proceeds	17,836		23,750		22,960
Other farming revenues	812		86		475
Total farming revenues	$	18,648	$	23,836	$	23,435

Ranch operations consists of game management revenues and ancillary land uses such as grazing leases and filming. Within game management we operate our High Desert Hunt Club, a premier upland bird hunting club. The High Desert Hunt Club offers over 6,400 acres and 35 hunting fields, each field providing different terrain and challenges. The hunting season runs from mid-October through March. We sell individual hunting packages as well as memberships. Ranch operations also includes Hunt at Tejon, which offers a wide variety of guided big game hunts including trophy Rocky Mountain elk, deer, turkey and wild pig. We offer guided hunts and memberships for both the Spring and Fall hunting seasons.

($ in thousands)	2016		2015		2014
Game management	$	1,296	$	1,658	$	1,652
Grazing	1,187		1,484		1,155
High Desert Hunt Club	334		351		302
Filming and other	521		430		425
Total ranch operations revenues	$	3,338	$	3,923	$	3,534

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

($ in thousands)	Identifiable Assets		Depreciation and Amortization		Capital Expenditures
2016
Real estate - commercial/industrial	$	65,290	$	551	$	5,196
Real estate - resort/residential	243,963		77		16,013
Mineral resources	45,066		1,357		2,161
Farming	36,895		1,150		2,006
Ranch operations	3,893		641		523
Corporate	44,594		773		481
Total	$	439,701	$	4,549	$	26,380
2015
Real estate - commercial/industrial	$	67,550	$	469	$	7,023
Real estate - resort/residential	228,064		71		16,404
Mineral resources	46,025		1,501		1,199
Farming	32,542		929		2,583
Ranch operations	4,313		460		299
Corporate	53,425		1,660		540
Total	$	431,919	$	5,090	$	28,048
2014
Real estate - commercial/industrial	$	67,640	$	645	$	8,391
Real estate - resort/residential	212,534		76		10,214
Mineral resources	47,434		1,351		—
Farming	34,464		1,633		4,701
Ranch operations	4,295		453		561
Corporate	65,556		713		908
Total	$	431,923	$	4,871	$	24,775

Segment profits (losses) are total revenues less operating expenses, excluding interest income, corporate expenses, equity in earnings of unconsolidated joint ventures, 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.