INCOME OPPORTUNITY REALTY INVESTORS INC /TX/ Segments Disclosure

NOTE 7.

OPERATING SEGMENTS

 

Our segments are based on management’s method of internal reporting which classifies its operations by property type. The Company’s reportable segments are land held subject to a sales contract and other. Significant differences among the accounting policies of the operating segments as compared to the Consolidated Financial Statements principally involve the calculation and allocation of administrative and other expenses. Management evaluates the performance of each of the operating segments and allocates resources to them based on their net operating income and cash flow.

 

Items of income that are not reflected in the segments are interest, other income, gain on debt extinguishment and equity in partnerships. Expenses that are not reflected in the segments are provision for losses, advisory, net income and incentive fees, general and administrative and non-controlling interests. The segment labeled as “Other” consists of revenue and operating expenses related to the notes receivable and corporate debt.

 

The Company’s segments are based on our method of internal reporting which classifies operations by the type of property in the portfolio. The Company’s segments by use of property are land and other (dollars in thousands): 

 

For the Twelve Months Ended December 31, 2019		Land				Other				Total
Operating Revenues		$	—			$	—			$	—
Interest income from related parties			—				6,574				6,574
Other income			—				237				237
Segment operating income		$	—			$	6,811			$	6,811
Real estate assets		$	—			$	—			$	—
For the Twelve Months Ended December 31, 2018			Land				Other				Total
Operating Revenues		$	—			$	—			$	—
Interest income from related parties			—				4,880				4,880
Gain on land sales			—				7,323			$	7,323
Segment operating income		$	—			$	12,203			$	12,203
Real estate assets		$	—			$	—			$	—

 

For the Twelve Months Ended December 31, 2017			Land				Other				Total
Operating revenues		$	—			$	—			$	—
Interest income from related parties			—				4,237				4,237
Other income			—				250			$	250
Segment operating income		$	—			$	4,487			$	4,487
Real estate assets		$	22,717			$	—			$	22,717

 

The tables below reconcile the segment information to the corresponding amounts in the Consolidated Statements of Operations (dollars in thousands):

 

		For the Years Ended December 31,
		2019				2018				2017
Segment operating income		$	6,811			$	12,203			$	4,487
Other non-segment items of income (expense)
General and administrative			(494	)			(494	)			(438	)
Net income fee to related party			(357	)			(631	)			(250	)
Advisory fee to related party			(737	)			(685	)			(660	)
Income tax expense			(1,078	)			(2,183	)			(1,631	)
Net income from continuing operations		$	4,145			$	8,210			$	1,508

 

The table below reconciles the segment information to the corresponding amounts in the Consolidated Balance Sheets (dollars in thousands):

 

		For the Years Ended December 31,
		2019				2018
Real estate assets		$	—			$	—
Notes and interest receivable			14,030				14,030
Other assets			86,226				82,093
Total assets		$	100,256			$	96,123