BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2011

BUSINESS SEGMENTS

14. BUSINESS SEGMENTS

We currently operate in three business segments: commercial/industrial real estate development and services; resort/residential real estate development; and farming.

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

($ in thousands)	2011			2010			2009
Revenues
Real estate - commercial/industrial	$	25,952		$	16,656		$	14,996
Real estate - resort/residential		16,134			281			272
Farming		21,012			18,576			12,983
Segment revenues		63,098			35,513			28,251
Investment income		1,260			979			1,640
Other income		98			61			45
Total revenues	$	64,456		$	36,553		$	29,936
Segment Profits (Losses) and Income (Loss) Before Taxes
Real estate - commercial/industrial	$	12,522		$	5,997		$	2,527
Real estate - resort/residential		12,192			(2,808	)		(4,171	)
Farming		8,437			7,662			1,179
Segment profits		33,151			10,851			(465	)
Investment income		1,260			979			1,640
Other income		98			61			45
Interest expense		0			(9	)		(70	)
Corporate expenses		(12,277	)		(5,612	)		(7,311	)
Income (loss) before equity in earnings of unconsolidated joint ventures		22,232			6,270			(6,161	)
Equity in earnings of unconsolidated joint ventures		916			541			374
Income (loss) before taxes	$	23,148		$	6,811		$	(5,787	)

Commercial/industrial real estate development generates revenues from lease activities, land sales, building sales and leases, oil and mineral royalties and grazing leases, with the primary commercial/industrial development being Tejon Ranch Commerce Center.

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

($ in thousands)	2011		2010		2009
Commercial leases	$	5,450	$	5,705	$	5,613
Land sales		4,340		604		—
Oil and gas revenue		10,697		5,156		3,833
Mineral revenue		1,509		1,206		1,806
Grazing leases		1,087		1,110		1,129
All other land management ancillary services		2,869		2,875		2,615
	$	25,952	$	16,656	$	14,996

Land management ancillary services include wildlife management, landscape and property maintenance, and building management services.

Resort/residential land development produces revenues from farming activities within the Centennial Founders LLC and is actively involved in the land entitlement and pre-development process. Farming produces revenues from the sale of winegrapes, almonds, and pistachios. 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
2011
Real estate - commercial/industrial	$	57,745	$	1,111	$	4,155
Real estate - resort/residential		110,147		96		7,132
Farming		24,326		1,293		1,477
Corporate		129,758		1,097		885
Total	$	321,976	$	3,597	$	13,649
2010
Real estate - commercial/industrial	$	51,053	$	867	$	7,716
Real estate - resort/residential		98,829		63		5,296
Farming		26,366		1,193		389
Corporate		111,843		422		795
Total	$	288,091	$	2,545	$	14,196
2009
Real estate - commercial/industrial	$	59,652	$	1,031	$	11,428
Real estate - resort/residential		86,553		133		7,343
Farming		23,375		1,199		1,571
Corporate		65,164		759		583
Total	$	234,744	$	3,122	$	20,925

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.