XML 87 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information
We manage our operations through three segments: real estate, oil and gas and other natural resources. Real estate secures entitlements and develops infrastructure on our lands for single-family residential and mixed-use communities, and manages our undeveloped land, commercial and income producing properties, primarily a hotel and our multifamily investments. Oil and gas is an independent oil and gas exploration, development and production operation and manages our owned and leased mineral interests. Other natural resources manages our timber, recreational leases and water resource initiatives.
Total assets allocated by segment are as follows:
 
Third
Quarter-End
 
Year-End
 
2014
 
2013
 
(In thousands)
Real estate
$
664,642

 
$
582,802

Oil and gas
355,501

 
312,553

Other natural resources
23,502

 
23,478

Assets not allocated to segments (a)
224,594

 
253,319

 
$
1,268,239

 
$
1,172,152


  _________________________
(a) 
Assets not allocated to segments at third quarter-end 2014 principally consist of cash and cash equivalents of $170,606,000 and a net deferred tax asset of $30,932,000. Assets not allocated to segments at year-end 2013 principally consist of cash and cash equivalents of $192,307,000 and a net deferred tax asset of $40,398,000.
We evaluate performance based on segment earnings (loss) before unallocated items and income taxes. Segment earnings (loss) consist of operating income, equity in earnings (loss) of unconsolidated ventures, gain on sales of assets, interest income on loans secured by real estate and net (income) loss attributable to noncontrolling interests. Items not allocated to our business segments consist of general and administrative expense, share-based compensation, gain on sale of strategic timberland, interest expense and other corporate non-operating income and expense. The accounting policies of the segments are the same as those described in Note 1—Basis of Presentation. Our revenues are derived from U.S. operations and all of our assets are located in the U.S. In third quarter and first nine months 2014, no single customer accounted for more than ten percent of our total revenues.
Segment revenues and earnings are as follows:
 
Third Quarter
 
First Nine Months
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
Revenues:
 
 
 
 
 
 
 
Real estate
$
32,445

 
$
50,356

 
$
153,098

 
$
170,264

Oil and gas
24,145

 
22,095

 
66,076

 
53,430

Other natural resources
2,250

 
2,656

 
7,284

 
8,963

Total revenues
$
58,840

 
$
75,107

 
$
226,458

 
$
232,657

Segment earnings:
 
 
 
 
 
 
 
Real estate
$
15,987

 
$
13,197

 
$
66,859

 
$
40,747

Oil and gas
6,002

 
8,499

 
16,331

 
17,869

Other natural resources
669

 
549

 
2,220

 
2,792

Total segment earnings
22,658

 
22,245

 
85,410

 
61,408

Items not allocated to segments (a)
(14,676
)
 
(13,347
)
 
(41,563
)
 
(45,114
)
Income before taxes attributable to Forestar Group Inc.
$
7,982

 
$
8,898

 
$
43,847

 
$
16,294


  _________________________
(a) 
Items not allocated to segments consist of:
 
Third Quarter
 
First Nine Months
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
General and administrative expense
$
(5,190
)
 
$
(4,648
)
 
$
(15,924
)
 
$
(14,935
)
Shared-based compensation expense
(991
)
 
(3,492
)
 
(4,523
)
 
(15,367
)
Interest expense
(8,634
)
 
(5,231
)
 
(21,507
)
 
(14,892
)
Other corporate non-operating income
139

 
24

 
391

 
80

 
$
(14,676
)
 
$
(13,347
)
 
$
(41,563
)
 
$
(45,114
)