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Segment Information
 6 Months Ended
Jun. 30, 2015
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:
 
Second
Quarter-End
 
Year-End
 
2015
 
2014
 
(In thousands)
Real estate
$
689,409

 
$
654,774

Oil and gas
295,759

 
342,703

Other natural resources
20,074

 
22,531

Assets not allocated to segments (a)
187,077

 
238,191

 
$
1,192,319

 
$
1,258,199


 
 _________________________
(a) 
Assets not allocated to segments at second quarter-end 2015 principally consist of cash and cash equivalents of $98,761,000 and a net deferred tax asset of $65,327,000. Assets not allocated to segments at year-end 2014 principally consist of cash and cash equivalents of $170,127,000 and a net deferred tax asset of $40,624,000.
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 and long-term incentive 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 second quarter 2015, no single customer accounted for more than ten percent of our total revenues.
Segment revenues and earnings are as follows:
 
Second Quarter
 
First Six Months
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
Revenues:
 
 
 
 
 
 
 
Real estate
$
39,409

 
$
55,173

 
$
72,239

 
$
120,653

Oil and gas
16,165

 
24,377

 
29,350

 
41,931

Other natural resources
1,856

 
3,463

 
3,646

 
5,034

Total revenues
$
57,430

 
$
83,013

 
$
105,235

 
$
167,618

Segment earnings (loss):
 
 
 
 

 

Real estate
$
15,527

 
$
27,297

 
$
24,593

 
$
50,872

Oil and gas
(56,867
)
 
9,522

 
(59,808
)
 
10,329

Other natural resources
(43
)
 
2,079

 
(434
)
 
1,551

Total segment earnings (loss)
(41,383
)
 
38,898

 
(35,649
)
 
62,752

Items not allocated to segments (a)
(13,868
)
 
(16,025
)
 
(32,119
)
 
(26,887
)
Income (loss) before taxes attributable to Forestar Group Inc.
$
(55,251
)
 
$
22,873

 
$
(67,768
)
 
$
35,865


  _________________________
(a) 
Items not allocated to segments consist of:
 
Second Quarter
 
First Six Months
 
2015
 
2014
 
2015
 
2014
 
(In thousands)
General and administrative expense
$
(5,177
)
 
$
(5,566
)
 
$
(11,197
)
 
$
(10,734
)
Shared-based and long-term incentive compensation expense
(23
)
 
(3,219
)
 
(3,481
)
 
(3,532
)
Interest expense
(8,715
)
 
(7,370
)
 
(17,536
)
 
(12,873
)
Other corporate non-operating income
47

 
130

 
95

 
252

 
$
(13,868
)
 
$
(16,025
)
 
$
(32,119
)
 
$
(26,887
)