XML 61 R25.htm IDEA: XBRL DOCUMENT v3.24.0.1
REPORTING SEGMENTS AND RELATED INFORMATION
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
REPORTING SEGMENTS AND RELATED INFORMATION REPORTING SEGMENTS AND RELATED INFORMATION
The Company currently operates five reporting segments: commercial/industrial real estate development, resort/residential real estate development, mineral resources, farming, and ranch operations. For further details of the revenue components within each reporting segment, see Results of Operations by Segment in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations".
Information pertaining to operating results of the Company's reporting segments are as follows for each of the years ended December 31:
($ in thousands)202320222021
Revenues
Real estate—commercial/industrial$11,758 $40,515 $19,476 
Mineral resources14,524 21,595 20,987 
Farming13,950 13,001 11,039 
Ranch operations4,507 4,106 4,111 
Segment revenues44,739 79,217 55,613 
Equity in unconsolidated joint ventures, net6,868 7,752 9,202 
Investment income2,557 634 57 
Total revenues and other income54,164 87,603 64,872 
Segment Profits (Losses)
Real estate—commercial/industrial3,705 24,159 7,523 
Real estate—resort/residential(1,528)(1,629)(1,723)
Mineral resources5,839 8,626 7,428 
Farming(1,307)(6,810)(3,077)
Ranch operations(536)(918)(568)
Segment profits (1)
6,173 23,428 9,583 
Equity in earnings of unconsolidated joint ventures, net6,868 7,752 9,202 
Investment income2,557 634 57 
Other (expense) income(138)1,088 164 
Corporate expenses(9,872)(9,699)(9,843)
Income from operations before income taxes$5,588 $23,203 $9,163 
(1) Segment profits are revenues less operating expenses, excluding investment income and expense, corporate expenses, equity in earnings of unconsolidated joint ventures, and income taxes.
Real Estate - Commercial/Industrial
Commercial revenue consists of land and building leases to tenants at the Company's commercial retail and industrial developments, base and percentage rents from the PEF power plant lease, communication tower rents, land sales, and payments from easement leases.
In 2023, the Company did not have any land sales.
In 2022, this operating segment had the following land sales:
•The first sale comprised of a 27.88-acre land parcel contributed with a fair value of $8,501,000 to TRC-MRC 5, LLC. The Company recognized revenues of $5,489,000 and deferred profit of $3,012,000 after applying the five-step revenue recognition model in accordance with ASC Topic 606 — Revenue From Contracts With Customers and ASC Topic 323, Investments — Equity Method and Joint Ventures.
•58.0 acres of industrial land located at TRCC East to Nestlé for $22,000,000. The Company recognized land sales revenue of $19,627,000 and deferred revenues of $2,373,000 attributable to a performance obligation within the contract after applying the five-step revenue recognition model in accordance with ASC Topic 606 - Revenue From Contracts With Customers.
•12.3 acres of industrial land located at TRCC West to a third party for $4,680,000.
In 2021, the Company sold 17.1 acres of land to a third party for $4,655,000. The Company recognized land sales revenue of $4,355,000 and deferred $300,000 attributable to a performance obligation within the contract after applying the five-step revenue recognition model in accordance with Accounting Standards Codification (ASC) Topic 606 - Revenue From Contracts With Customers.
The following table summarizes revenues, expenses and operating income from this segment for each of the years ended December 31:
($ in thousands)202320222021
Commercial revenues$11,758 $40,515 $19,476 
Equity in earnings of unconsolidated joint ventures6,868 7,752 9,202 
Commercial revenues and equity in earnings of unconsolidated joint ventures$18,626 $48,267 $28,678 
Commercial expenses8,053 16,356 11,953 
Operating results from commercial and unconsolidated joint ventures$10,573 $31,911 $16,725 
Real Estate - Resort/Residential
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 $1,528,000, $1,629,000, and $1,723,000 during the years ended December 31, 2023, 2022, and 2021, respectively.
Mineral Resources
The mineral resources segment receives oil and mineral royalties from the exploration and development companies that extract or mine the natural resources from the Company's land along with revenue from water sales. The following table summarizes revenues, expenses and operating results from this segment for each of the years ended December 31:
($ in thousands)202320222021
Mineral resources revenues$14,524 $21,595 $20,987 
Mineral resources expenses8,685 12,969 13,559 
Operating results from mineral resources$5,839 $8,626 $7,428 
Farming
The farming segment produces revenues from the sale of wine grapes, almonds, pistachios and hay. The following table summarizes revenues, expenses and operating results from this segment for each of the years ended December 31:
($ in thousands)202320222021
Farming revenues$13,950 $13,001 $11,039 
Farming expenses15,257 19,811 14,116 
Operating results from farming$(1,307)$(6,810)$(3,077)
Ranch Operations
Ranch operations consists of game management revenues and ancillary land uses, such as grazing leases and filming. The following table summarizes revenues, expenses and operating results from this segment for each of the years ended December 31:
($ in thousands)202320222021
Ranch operations revenues$4,507 $4,106 $4,111 
Ranch operations expenses5,043 5,024 4,679 
Operating results from ranch operations$(536)$(918)$(568)
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 AmortizationCapital
Expenditures
2023
Real estate - commercial/industrial$73,105 $468 $7,815 
Real estate - resort/residential321,216 42 7,888 
Mineral resources52,068 1,374 — 
Farming52,094 2,097 4,870 
Ranch operations2,072 390 464 
Corporate76,968 435 291 
Total$577,523 $4,806 $21,328 
2022
Real estate - commercial/industrial$74,292 $455 $8,933 
Real estate - resort/residential312,956 30 7,253 
Mineral resources48,780 1,366 — 
Farming45,814 1,937 5,915 
Ranch operations1,945 439 305 
Corporate83,004 401 196 
Total$566,791 $4,628 $22,602 
2021
Real estate - commercial/industrial$82,397 $463 $4,906 
Real estate - resort/residential305,818 31 8,064 
Mineral resources52,440 1,368 — 
Farming47,160 1,789 7,416 
Ranch operations2,079 455 306 
Corporate56,142 488 187 
Total$546,036 $4,594 $20,879 
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.