þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Fiscal Year Ended December 31, | ||
or | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Transition Period From to |
Delaware | 26-1336998 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer | |
Identification No.) |
Title of Each Class | Name of Each Exchange On Which Registered | |
Common Stock, par value $1.00 per share Preferred Share Purchase Rights | New York Stock Exchange New York Stock Exchange |
Large accelerated filer o | Accelerated filer þ | Non-accelerated filer o | Smaller reporting company o |
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Item 1. | Business. |
• | Real estate, | |
• | Mineral resources, and | |
• | Fiber resources. |
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• | ||
• |
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• | ||
• | Leasing over | |
• | ||
• | Acquiring a multifamily project in Houston, Texas with tax deferred IRC Section 1031 timberland sales proceeds and non-recourse borrowings; | |
• | Repurchasing over one million | |
• |
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Project | ||||||||
Project | County | Market | Acres(b) | |||||
California | ||||||||
Hidden Creek Estates | Los Angeles | Los Angeles | 700 | |||||
Terrace at Hidden Hills | Los Angeles | Los Angeles | 30 | |||||
Georgia | ||||||||
Ball Ground | Cherokee | Atlanta | 500 | |||||
Burt Creek | Dawson | Atlanta | 970 | |||||
Crossing | Coweta | Atlanta | 230 | |||||
Dallas Highway | Haralson | Atlanta | 1,060 | |||||
Fincher Road | Cherokee | Atlanta | 3,890 | |||||
Fox Hall | Coweta | Atlanta | 960 | |||||
Garland Mountain | Cherokee/Bartow | Atlanta | 350 | |||||
Home Place | Coweta | Atlanta | 1,510 | |||||
Martin’s Bridge | Banks | Atlanta | 970 | |||||
Mill Creek | Coweta | Atlanta | 770 | |||||
Serenity | Carroll | Atlanta | 440 | |||||
Waleska | Cherokee | Atlanta | 150 | |||||
Wolf Creek | Carroll/Douglas | Atlanta | 12,230 | |||||
Yellow Creek | Cherokee | Atlanta | 1,060 | |||||
Texas | ||||||||
Lake Houston | Harris/Liberty | Houston | 3,700 | |||||
San Jacinto | Montgomery | Houston | 150 | |||||
Total | ||||||||
(a) | A project is deemed to be in the entitlement process when customary steps necessary for the preparation | |
(b) | Project acres, which are the total for the project regardless of our ownership interest, are approximate. The actual number of acres entitled may vary. | |
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Residential Lots(c) | Commercial Acres(d) | Residential Lots(c) | Commercial Acres(d) | |||||||||||||||||||||||||||||||||||||||||||||
Lots Sold | Acres Sold | Lots Sold | Acres Sold | |||||||||||||||||||||||||||||||||||||||||||||
Interest | Since | Lots | Since | Acres | Interest | Since | Lots | Since | Acres | |||||||||||||||||||||||||||||||||||||||
Project | County | Market | Owned(b) | Inception | Remaining | Inception | Remaining | County | Market | Owned(b) | Inception | Remaining | Inception | Remaining | ||||||||||||||||||||||||||||||||||
Projects we own | ||||||||||||||||||||||||||||||||||||||||||||||||
California | ||||||||||||||||||||||||||||||||||||||||||||||||
San Joaquin River | Contra Costa/ Sacramento | Oakland | 100% | — | — | — | 288 | Contra Costa/Sacramento | Oakland | 100% | — | — | — | 288 | ||||||||||||||||||||||||||||||||||
Colorado | ||||||||||||||||||||||||||||||||||||||||||||||||
Buffalo Highlands | Weld | Denver | 100% | — | 164 | — | — | Weld | Denver | 100% | — | 164 | — | — | ||||||||||||||||||||||||||||||||||
Johnstown Farms | Weld | Denver | 100% | 115 | 493 | 2 | 8 | Weld | Denver | 100% | 115 | 494 | 2 | 8 | ||||||||||||||||||||||||||||||||||
Pinery West | Douglas | Denver | 100% | — | — | — | 115 | Douglas | Denver | 100% | — | — | — | 115 | ||||||||||||||||||||||||||||||||||
Stonebraker | Weld | Denver | 100% | — | 603 | — | 13 | Weld | Denver | 100% | — | 603 | — | 13 | ||||||||||||||||||||||||||||||||||
Westlake Highlands | Jefferson | Denver | 100% | 6 | 15 | — | — | Jefferson | Denver | 100% | 21 | — | — | — | ||||||||||||||||||||||||||||||||||
Texas | ||||||||||||||||||||||||||||||||||||||||||||||||
Arrowhead Ranch | Hays | Austin | 100% | — | 232 | — | 6 | Hays | Austin | 100% | — | 259 | — | 6 | ||||||||||||||||||||||||||||||||||
Caruth Lakes | Rockwall | Dallas/Fort Worth | 100% | 279 | 370 | — | — | Rockwall | Dallas/Fort Worth | 100% | 310 | 339 | — | — | ||||||||||||||||||||||||||||||||||
Cibolo Canyons | Bexar | San Antonio | 100% | 590 | 1,157 | 64 | 81 | Bexar | San Antonio | 100% | 640 | 775 | 64 | 157 | ||||||||||||||||||||||||||||||||||
Harbor Lakes | Hood | Dallas/Fort Worth | 100% | 199 | 250 | — | 14 | Hood | Dallas/Fort Worth | 100% | 201 | 248 | 2 | 12 | ||||||||||||||||||||||||||||||||||
Harbor Mist | Calhoun | Corpus Christi | 100% | — | 200 | — | — | |||||||||||||||||||||||||||||||||||||||||
Hunter’s Crossing | Bastrop | Austin | 100% | 322 | 169 | 38 | 68 | Bastrop | Austin | 100% | 340 | 150 | 38 | 71 | ||||||||||||||||||||||||||||||||||
La Conterra | Williamson | Austin | 100% | 60 | 449 | — | 60 | Williamson | Austin | 100% | 76 | 424 | — | 58 | ||||||||||||||||||||||||||||||||||
Maxwell Creek | Collin | Dallas/Fort Worth | 100% | 672 | 339 | 10 | — | Collin | Dallas/Fort Worth | 100% | 700 | 299 | 10 | — | ||||||||||||||||||||||||||||||||||
Oak Creek Estates | Comal | San Antonio | 100% | 67 | 581 | 13 | — | Comal | San Antonio | 100% | 69 | 578 | 13 | — | ||||||||||||||||||||||||||||||||||
The Colony | Bastrop | Austin | 100% | 410 | 2,242 | 22 | 49 | Bastrop | Austin | 100% | 412 | 734 | 22 | 31 | ||||||||||||||||||||||||||||||||||
The Gables at North Hill | Collin | Dallas/Fort Worth | 100% | 195 | 88 | — | — | Collin | Dallas/Fort Worth | 100% | 199 | 84 | — | — | ||||||||||||||||||||||||||||||||||
The Preserve at Pecan Creek | Denton | Dallas/Fort Worth | 100% | 264 | 554 | — | 9 | Denton | Dallas/Fort Worth | 100% | 306 | 512 | — | 9 | ||||||||||||||||||||||||||||||||||
The Ridge at Ribelin Ranch | Travis | Austin | 100% | — | — | 179 | 16 | Travis | Austin | 100% | — | — | 179 | 16 | ||||||||||||||||||||||||||||||||||
Westside at Buttercup Creek | Williamson | Austin | 100% | 1,290 | 231 | 66 | — | Williamson | Austin | 100% | 1,318 | 196 | 66 | — | ||||||||||||||||||||||||||||||||||
Other projects (7) | Various | Various | 100% | 1,550 | 19 | 197 | 23 | |||||||||||||||||||||||||||||||||||||||||
Other projects (9) | Various | Various | 100% | 1,554 | 18 | 197 | 24 | |||||||||||||||||||||||||||||||||||||||||
Georgia | ||||||||||||||||||||||||||||||||||||||||||||||||
Towne West | Bartow | Atlanta | 100% | — | 2,674 | — | 121 | Bartow | Atlanta | 100% | — | 2,674 | — | 121 | ||||||||||||||||||||||||||||||||||
Other projects (14) | Various | Atlanta | 100% | — | 2,934 | — | 705 | |||||||||||||||||||||||||||||||||||||||||
Other projects (13) | Various | Atlanta | 100% | — | 2,934 | — | 705 | |||||||||||||||||||||||||||||||||||||||||
Missouri and Utah | ||||||||||||||||||||||||||||||||||||||||||||||||
Other projects (2) | Various | Various | 100% | 443 | 321 | — | — | Various | Various | 100% | 458 | 96 | — | — | ||||||||||||||||||||||||||||||||||
6,462 | 14,085 | 591 | 1,576 | 6,719 | 11,581 | 593 | 1,634 | |||||||||||||||||||||||||||||||||||||||||
Projects in entities we consolidate | Projects in entities we consolidate | Projects in entities we consolidate | ||||||||||||||||||||||||||||||||||||||||||||||
Texas | ||||||||||||||||||||||||||||||||||||||||||||||||
City Park | Harris | Houston | 75% | 1,099 | 212 | 50 | 105 | Harris | Houston | 75% | 1,134 | 177 | 50 | 115 | ||||||||||||||||||||||||||||||||||
Lantana | Denton | Dallas/Fort Worth | 55% | (e) | 498 | 1,802 | — | — | Denton | Dallas/Fort Worth | 55% | (e) | 593 | 1,639 | — | — | ||||||||||||||||||||||||||||||||
Light Farms | Collin | Dallas/Fort Worth | 65% | — | 2,517 | — | — | Collin | Dallas/Fort Worth | 65% | — | 2,868 | — | — | ||||||||||||||||||||||||||||||||||
Stoney Creek | Dallas | Dallas/Fort Worth | 90% | 69 | 685 | — | — | Dallas | Dallas/Fort Worth | 90% | 107 | 647 | — | — | ||||||||||||||||||||||||||||||||||
Timber Creek | Collin | Dallas/Fort Worth | 88% | — | 614 | — | — | Collin | Dallas/Fort Worth | 88% | — | 614 | — | — | ||||||||||||||||||||||||||||||||||
Other projects (5) | Various | Various | Various | 936 | 271 | 26 | 21 | Various | Various | Various | 953 | 254 | 26 | 25 | ||||||||||||||||||||||||||||||||||
2,602 | 6,101 | 76 | 126 | 2,787 | 6,199 | 76 | 140 | |||||||||||||||||||||||||||||||||||||||||
Total owned and consolidated | 9,064 | 20,186 | 667 | 1,702 | 9,506 | 17,780 | 669 | 1,774 | ||||||||||||||||||||||||||||||||||||||||
Projects in ventures that we account for using the equity method | Projects in ventures that we account for using the equity method | Projects in ventures that we account for using the equity method | ||||||||||||||||||||||||||||||||||||||||||||||
Georgia | ||||||||||||||||||||||||||||||||||||||||||||||||
Seven Hills | Paulding | Atlanta | 50% | 634 | 446 | 26 | — | Paulding | Atlanta | 50% | 636 | 445 | 26 | 113 | ||||||||||||||||||||||||||||||||||
The Georgian | Paulding | Atlanta | 38% | 288 | 1,097 | — | — | Paulding | Atlanta | 38% | 288 | 1,097 | — | — | ||||||||||||||||||||||||||||||||||
Other projects (5) | Various | Atlanta | Various | 1,845 | 77 | 3 | — | |||||||||||||||||||||||||||||||||||||||||
Other projects (4) | Various | Atlanta | Various | 1,820 | 77 | 3 | — | |||||||||||||||||||||||||||||||||||||||||
Texas | ||||||||||||||||||||||||||||||||||||||||||||||||
Bar C Ranch | Tarrant | Dallas/Fort Worth | 50% | 192 | 1,007 | — | — | Tarrant | Dallas/Fort Worth | 50% | 232 | 967 | — | — | ||||||||||||||||||||||||||||||||||
Entrada | Travis | Austin | 50% | — | 821 | — | 3 | |||||||||||||||||||||||||||||||||||||||||
Fannin Farms West | Tarrant | Dallas/Fort Worth | 50% | 279 | 101 | — | 15 | Tarrant | Dallas/Fort Worth | 50% | 309 | 72 | — | 15 | ||||||||||||||||||||||||||||||||||
Harper’s Preserve | Montgomery | Houston | 50% | — | 1,722 | — | 72 | |||||||||||||||||||||||||||||||||||||||||
Lantana | Denton | Dallas/Fort Worth | Various | (e) | 1,436 | 34 | 14 | 75 | Denton | Dallas/Fort Worth | Various | (e) | 1,436 | 116 | 14 | 76 | ||||||||||||||||||||||||||||||||
Long Meadow Farms | Fort Bend | Houston | 19% | 607 | 1,499 | 72 | 138 | Fort Bend | Houston | 19% | 693 | 1,390 | 87 | 133 | ||||||||||||||||||||||||||||||||||
Southern Trails | Brazoria | Houston | 40% | 372 | 655 | — | — | Brazoria | Houston | 40% | 452 | 575 | — | — | ||||||||||||||||||||||||||||||||||
Stonewall Estates | Bexar | San Antonio | 25% | 220 | 161 | — | — | Bexar | San Antonio | 25% | 261 | 121 | — | — | ||||||||||||||||||||||||||||||||||
Summer Creek Ranch | Tarrant | Dallas/Fort Worth | 50% | 796 | 1,772 | — | 363 | Tarrant | Dallas/Fort Worth | 50% | 796 | 478 | — | 71 | ||||||||||||||||||||||||||||||||||
Summer Lakes | Fort Bend | Houston | 50% | 325 | 798 | 56 | — | Fort Bend | Houston | 50% | 345 | 778 | 56 | — | ||||||||||||||||||||||||||||||||||
Village Park | Collin | Dallas/Fort Worth | 50% | 339 | 221 | 3 | 2 | Collin | Dallas/Fort Worth | 50% | 356 | 211 | 3 | 2 | ||||||||||||||||||||||||||||||||||
Waterford Park | Fort Bend | Houston | 50% | — | 493 | — | 37 | Fort Bend | Houston | 50% | — | 210 | — | 90 | ||||||||||||||||||||||||||||||||||
Other projects (2) | Various | Various | Various | 296 | 228 | — | 15 | Various | Various | Various | 296 | 228 | — | 15 | ||||||||||||||||||||||||||||||||||
Florida | ||||||||||||||||||||||||||||||||||||||||||||||||
Other projects (3) | Various | Tampa | Various | 473 | 372 | — | — | Various | Tampa | Various | 519 | 326 | — | — | ||||||||||||||||||||||||||||||||||
Total in ventures | 8,102 | 8,961 | 174 | 645 | 8,439 | 9,634 | 189 | 590 | ||||||||||||||||||||||||||||||||||||||||
Combined total | 17,166 | 29,147 | 841 | 2,347 | 17,945 | 27,414 | 858 | 2,364 | ||||||||||||||||||||||||||||||||||||||||
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(a) | A project is deemed entitled when all major discretionary governmental land-use approvals have been received. Some projects may require additional permits and/or non-governmental authorizations for development. | |
(b) | Interest owned reflects our net equity interest in the project, whether owned directly or indirectly. There are some projects that have multiple ownership structures within them. Accordingly, portions of these projects may appear as owned, consolidated or accounted for using the equity method. | |
(c) | Lots are for the total project, regardless of our ownership interest. Lots remaining represent vacant developed lots, lots under development and future planned | |
(d) | Commercial acres are for the total project, regardless of our ownership interest, and are net developable acres, which may be fewer than the gross acres available in the project. | |
(e) | The Lantana project consists of a series of |
Interest | ||||||||||||
Project | County | Market | Owned(a) | Type | Description | |||||||
Broadstone Memorial | Harris | Houston | 100 | % | Multifamily | 401 unit luxury apartment | ||||||
Radisson Hotel | Travis | Austin | 100 | % | Hotel | 413 guest rooms and suites | ||||||
Palisades West | Travis | Austin | 25 | % | Office | 375,000 square feet | ||||||
Las Brisas | Williamson | Austin | % | 414 unit luxury apartment |
(a) | Interest owned reflects our net equity interest in the project, whether owned directly or indirectly. |
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Held By | Held By | |||||||||||||||||||||||||||||||
State | Unleased | Leased(b) | Production(c) | Total(d) | Unleased | Leased(b) | Production(c) | Total(d) | ||||||||||||||||||||||||
(Net acres) | (Net acres) | |||||||||||||||||||||||||||||||
Texas | 130,000 | 103,000 | 20,000 | 253,000 | 157,000 | 70,000 | 25,000 | 252,000 | ||||||||||||||||||||||||
Louisiana | 129,000 | 8,000 | 7,000 | 144,000 | 121,000 | 18,000 | 5,000 | 144,000 | ||||||||||||||||||||||||
Georgia | 180,000 | — | — | 180,000 | 168,000 | — | — | 168,000 | ||||||||||||||||||||||||
Alabama | 40,000 | 2,000 | — | 42,000 | 40,000 | — | — | 40,000 | ||||||||||||||||||||||||
California | 1,000 | — | — | 1,000 | 1,000 | — | — | 1,000 | ||||||||||||||||||||||||
Indiana | 1,000 | — | — | 1,000 | ||||||||||||||||||||||||||||
480,000 | 113,000 | 27,000 | 620,000 | 488,000 | 88,000 | 30,000 | 606,000 | |||||||||||||||||||||||||
(a) | Includes ventures. | |
(b) | Includes leases in primary lease term | |
(c) | Acres being held by production are producing oil or natural gas in paying quantities. | |
(d) | Texas, Louisiana, California and |
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Texas | Texas | Louisiana | Texas | Louisiana(b) | ||||||||||||||||
County | Net Acres | Parish | Net Acres | Net Acres | Parish | Net Acres | ||||||||||||||
Trinity | 47,000 | Beauregard | 79,000 | 46,000 | Beauregard | 79,000 | ||||||||||||||
Angelina | 42,000 | Vernon | 39,000 | 42,000 | Vernon | 39,000 | ||||||||||||||
Houston | 29,000 | Calcasieu | 17,000 | 29,000 | Calcasieu | 17,000 | ||||||||||||||
Anderson | 25,000 | Allen | 7,000 | 25,000 | Allen | 7,000 | ||||||||||||||
Cherokee | 23,000 | Rapides | 1,000 | 24,000 | Rapides | 1,000 | ||||||||||||||
Sabine | 22,000 | Other | 1,000 | 23,000 | Other | 1,000 | ||||||||||||||
Red River | 14,000 | 144,000 | 14,000 | 144,000 | ||||||||||||||||
Newton | 14,000 | 13,000 | ||||||||||||||||||
San Augustine | 13,000 | 13,000 | ||||||||||||||||||
Jasper | 11,000 | 12,000 | ||||||||||||||||||
Other | 13,000 | 11,000 | ||||||||||||||||||
253,000 | 252,000 | |||||||||||||||||||
(a) | Includes ventures. | |
(b) | A significant portion of our Louisiana net mineral acres were severed from the surface estate shortly before our spin-off. Under Louisiana law, portions of our net mineral acres that are not producing minerals upon the tenth anniversary of severance from the surface estate will revert back to the surface estate owner. |
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Net Reserves | Net Reserves | |||||||||||||||
Oil | Natural Gas | Oil | Natural Gas | |||||||||||||
(Barrels) | (Mcf) | (Barrels) | (Mcf) | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Consolidated entities: | ||||||||||||||||
Year-end 2010 | 609 | 6,659 | ||||||||||||||
Year-end 2009 | 580 | 6,660 | 580 | 6,660 | ||||||||||||
Year-end 2008 | 457 | 7,538 | 457 | 7,538 | ||||||||||||
Our share of ventures accounted for using the equity method: | ||||||||||||||||
Year-end 2010 | — | 3,871 | ||||||||||||||
Year-end 2009 | — | 2,508 | — | 2,508 | ||||||||||||
Year-end 2008 | — | 125 | — | 125 | ||||||||||||
Total consolidated and our share of equity method ventures: | ||||||||||||||||
Year-end 2010 | 609 | 10,530 | ||||||||||||||
Year-end 2009 | 580 | 9,168 | 580 | 9,168 | ||||||||||||
Year-end 2008 | 457 | 7,663 | 457 | 7,663 |
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For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Consolidated entities: | ||||||||||||||||||||||||
Oil production (barrels) | 107,200 | 87,900 | 94,900 | 115,400 | 107,200 | 87,900 | ||||||||||||||||||
Average price per barrel | $ | 56.86 | $ | 106.66 | $ | 65.24 | $ | 73.09 | $ | 56.85 | $ | 106.66 | ||||||||||||
Natural gas production (millions of cubic feet) | 1,575.8 | 1,363.4 | 967.3 | 1,223.6 | 1,411.6 | 1,363.4 | ||||||||||||||||||
Average price per thousand cubic feet | $ | 4.09 | $ | 8.76 | $ | 6.69 | $ | 4.32 | $ | 4.12 | $ | 8.76 | ||||||||||||
Our share of ventures accounted for using the equity method: | ||||||||||||||||||||||||
Natural gas production (millions of cubic feet) | 572.8 | 82.1 | — | |||||||||||||||||||||
Average price per thousand cubic feet | $ | 4.12 | $ | 3.80 | $ | — | ||||||||||||||||||
Total consolidated and our share of equity method ventures: | ||||||||||||||||||||||||
Oil production (barrels) | 115,400 | 107,200 | 87,900 | |||||||||||||||||||||
Average price per barrel | $ | 73.09 | $ | 56.85 | $ | 106.66 | ||||||||||||||||||
Natural gas production (millions of cubic feet) | 1,796.4 | 1,493.7 | 1,363.4 | |||||||||||||||||||||
Average price per thousand cubic feet | $ | 4.26 | $ | 4.10 | $ | 8.76 |
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Wells(a) | Wells(a) | |||||||||||||||||||||||
Oil | Natural Gas | Total | Oil | Natural Gas | Total | |||||||||||||||||||
Consolidated entities: | ||||||||||||||||||||||||
Year-end 2010 | 262 | 209 | 471 | |||||||||||||||||||||
Year-end 2009 | 262 | 194 | 456 | 262 | 194 | 456 | ||||||||||||||||||
Year-end 2008 | 257 | 181 | 438 | 257 | 181 | 438 | ||||||||||||||||||
Ventures accounted for using the equity method: | ||||||||||||||||||||||||
Year-end 2010 | — | 23 | 23 | |||||||||||||||||||||
Year-end 2009 | — | 16 | 16 | — | 16 | 16 | ||||||||||||||||||
Year-end 2008 | — | 1 | 1 | — | 1 | 1 | ||||||||||||||||||
Total consolidated and equity method ventures: | ||||||||||||||||||||||||
Year-end 2010 | 262 | 232 | 494 | |||||||||||||||||||||
Year-end 2009 | 262 | 210 | 472 | 262 | 210 | 472 | ||||||||||||||||||
Year-end 2008 | 257 | 182 | 439 | 257 | 182 | 439 |
(a) | We have royalty interests in all wells at year-end 2010, 2009 and 2008. We also have non-operating working interests in six of these wells at year-end 2010 and 2009 and in three of these wells at year-end 2008. Total net wells from our royalty interests are 43, 41 and 38 at year-end 2010, 2009 and 2008. Net wells from our non-operating working interests are not significant. |
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For the Year | For the Year | |||||||||||||||||||
2009 | 2008 | 2010 | 2009 | 2008 | ||||||||||||||||
Pulpwood tons sold | 810,100 | 917,000 | 392,900 | 810,100 | 917,000 | |||||||||||||||
Average pulpwood price per ton | $ | 9.93 | $ | 8.53 | $ | 8.52 | ||||||||||||||
Sawtimber tons sold | 331,300 | 162,900 | 144,300 | 331,300 | 162,900 | |||||||||||||||
Average sawtimber price per ton | $ | 17.94 | $ | 19.82 | $ | 19.51 | ||||||||||||||
Total tons sold | 1,141,400 | 1,079,900 | 537,200 | 1,141,400 | 1,079,900 | |||||||||||||||
Average price per ton | $ | 12.08 | $ | 11.81 | $ | 10.17 |
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Average recreational acres leased | 208,100 | 249,200 | 287,200 | |||||||||
Average price per leased acre | $ | 8.32 | $ | 8.25 | $ | 7.44 |
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• | our annual reports onForm 10-K, quarterly reports onForm 10-Q, current reports onForm8-K, including amendments to these reports, and other documents as soon as reasonably practicable after we file them with the Securities and Exchange Commission; | |
• | beneficial ownership reports filed by officers, directors, and principal security holders under Section 16(a) of the Securities Exchange Act of 1934, as amended (or the “Exchange Act”); and |
17
• | corporate governance information that includes |
• | corporate governance guidelines, | |
• | audit committee charter, | |
• | management development and executive compensation committee charter, | |
• | nominating and governance committee charter, | |
• | standards of business conduct and ethics, | |
• | code of ethics for senior financial officers, and | |
• | information on how to communicate directly with our board of directors. |
18
Name | Age | Position | ||||
James M. DeCosmo | President and Chief Executive Officer | |||||
Christopher L. Nines | Chief Financial Officer | |||||
Craig A. Knight | Chief Real Estate Officer | |||||
Flavious J. Smith, Jr. | Executive Vice President | |||||
Phillip J. Weber | Executive Vice President | |||||
Charles T. Etheredge, Jr. | Executive Vice President | |||||
David M. Grimm | Chief Administrative Officer, General Counsel and Secretary | |||||
Charles D. Jehl | Chief Accounting Officer |
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Item 1A. | Risk Factors. |
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Item 1B. | Unresolved Staff Comments. |
Item 2. | Properties. |
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Item 3. | Legal Proceedings. |
Item 4. | Reserved. |
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Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
2009 | 2008 | 2010 | 2009 | |||||||||||||||||||||||||||||
Price Range | Price Range | Price Range | Price Range | |||||||||||||||||||||||||||||
High | Low | High | Low | High | Low | High | Low | |||||||||||||||||||||||||
First Quarter | $ | 13.50 | $ | 5.74 | $ | 29.49 | $ | 16.50 | $ | 22.85 | $ | 16.80 | $ | 13.50 | $ | 5.74 | ||||||||||||||||
Second Quarter | 14.17 | 7.36 | 27.30 | 18.39 | 23.54 | 16.23 | 14.17 | 7.36 | ||||||||||||||||||||||||
Third Quarter | 18.39 | 10.32 | 21.03 | 12.01 | 18.32 | 13.21 | 18.39 | 10.32 | ||||||||||||||||||||||||
Fourth Quarter | 22.98 | 14.31 | 15.50 | 2.93 | 19.78 | 16.47 | 22.98 | 14.31 | ||||||||||||||||||||||||
For the Year | 22.98 | 5.74 | 29.49 | 2.93 | 23.54 | 13.21 | 22.98 | 5.74 |
Maximum | ||||||||||||||||
Total Number | Number of | |||||||||||||||
of Shares | Shares That | |||||||||||||||
Purchased as | May Yet be | |||||||||||||||
Total | Average | Part of Publicly | Purchased | |||||||||||||
Number of | Price | Announced | Under the | |||||||||||||
Shares | Paid per | Plans or | Plans | |||||||||||||
Period | Purchased(2) | Share | Programs | or Programs | ||||||||||||
Month 1 (10/1/2010 — 10/31/2010) | — | $ | — | — | 5,999,013 | |||||||||||
Month 2 (11/1/2010 — 11/30/2010) | 646 | $ | 18.20 | — | 5,999,013 | |||||||||||
Month 3 (12/1/2010 — 12/31/2010) | — | $ | — | — | 5,999,013 | |||||||||||
Total | 646 | — | ||||||||||||||
(1) | On February 11, 2009, we announced that our Board of Directors authorized the repurchase of up to 7,000,000 shares of our common stock. In third quarter 2010, we repurchased 1,000,987 shares of our common stock at a cost of $15,178,000 or $15.16 average price paid per share. We have no plans or programs that expired during the period covered by the table above and no plans or programs that we intend to terminate prior to expiration or under which we no longer intend to make further purchases. | |
(2) | Represents shares withheld to pay taxes in connection with vesting of restricted stock awards and exercises of stock options. |
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Item 6. | Selected Financial Data. |
For the Year | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Real estate | $ | 68,269 | $ | 94,436 | $ | 98,859 | $ | 142,729 | $ | 180,151 | ||||||||||
Mineral resources | 24,790 | 36,256 | 47,671 | 20,818 | 27,980 | |||||||||||||||
Fiber resources | 8,301 | 15,559 | 13,192 | 14,439 | 17,429 | |||||||||||||||
Total revenues | $ | 101,360 | $ | 146,251 | $ | 159,722 | $ | 177,986 | $ | 225,560 | ||||||||||
Segment earnings (loss): | ||||||||||||||||||||
Real estate | $ | (4,634 | ) | $ | 3,182 | $ | 9,075 | $ | 39,507 | $ | 70,271 | |||||||||
Mineral resources | 22,783 | 32,370 | 44,076 | 18,581 | 26,305 | |||||||||||||||
Fiber resources | 5,058 | 9,622 | 8,896 | 7,950 | 6,711 | |||||||||||||||
Total segment earnings | 23,207 | 45,174 | 62,047 | 66,038 | 103,287 | |||||||||||||||
Items not allocated to segments: | ||||||||||||||||||||
General and administrative | (17,341 | ) | (22,399 | ) | (19,318 | ) | (17,413 | ) | (14,048 | ) | ||||||||||
Share-based compensation | (11,596 | ) | (11,998 | ) | (4,516 | ) | (1,397 | ) | (1,275 | ) | ||||||||||
Gain on sale of assets(a) | 28,607 | 104,047 | — | — | — | |||||||||||||||
Interest expense | (16,446 | ) | (20,459 | ) | (21,283 | ) | (9,229 | ) | (6,229 | ) | ||||||||||
Other non-operating income(b) | 1,164 | 375 | 279 | 705 | 79 | |||||||||||||||
Income before taxes | 7,595 | 94,740 | 17,209 | 38,704 | 81,814 | |||||||||||||||
Income tax expense | (2,470 | ) | (35,633 | ) | (5,235 | ) | (13,909 | ) | (29,970 | ) | ||||||||||
Net income | $ | 5,125 | $ | 59,107 | $ | 11,974 | $ | 24,795 | $ | 51,844 | ||||||||||
Diluted net income per common share(c) | $ | 0.14 | $ | 1.64 | $ | 0.33 | $ | 0.70 | $ | 1.47 | ||||||||||
Average diluted common shares outstanding(c) | 36,377 | 36,102 | 35,892 | 35,380 | 35,380 | |||||||||||||||
At year-end: | ||||||||||||||||||||
Assets | $ | 789,324 | $ | 784,734 | $ | 834,576 | $ | 748,726 | $ | 620,174 | ||||||||||
Debt | $ | 221,589 | $ | 216,626 | $ | 337,402 | $ | 266,015 | $ | 161,117 | ||||||||||
Noncontrolling interest | $ | 4,715 | $ | 5,879 | $ | 6,660 | $ | 8,629 | $ | 7,746 | ||||||||||
Forestar Group Inc. shareholders’/Parent’s equity | $ | 509,564 | $ | 512,456 | $ | 447,292 | $ | 433,201 | $ | 418,052 | ||||||||||
Ratio of total debt to total capitalization | 30 | % | 29 | % | 43 | % | 38 | % | 27 | % |
(a) | Gain on sale of assets represents gains from timberland sales in accordance with our near-term strategic initiatives announced first quarter 2009. | |
(b) | In 2010, other non-operating income principally represents interest income related to a loan to a third-party equity investor in the resort development located at our Cibolo Canyons development. We received payment in full plus interest in fourth quarter 2010. | |
(c) | Prior to December 28, 2007, we were a wholly-owned subsidiary of Temple-Inland Inc. For 2007 and 2006, we computed diluted net income per share based upon the number of shares of our common stock distributed by Temple-Inland on December 28, 2007. |
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Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
• | general economic, market or business conditions in Texas or Georgia, where our real estate activities are concentrated; | |
• | the opportunities (or lack thereof) that may be presented to us and that we may pursue; | |
• | significant customer concentration | |
• | future residential or commercial entitlements, development approvals and the ability to obtain such approvals; | |
• | accuracy of estimates and other assumptions related to investment in real estate, the expected timing and pricing of land and lot sales and related cost of real estate sales, impairment of long-lived assets, income taxes, share-based compensation and oil and natural gas reserves; | |
• | the levels of resale housing inventory and potential impact of foreclosures in our development projects and the regions in which they are located; | |
• | the development of relationships with strategic partners; | |
• | fluctuations in costs and expenses; | |
• | demand for new housing, which can be affected by a number of factors including the availability of mortgage credit; | |
• | supply of and demand for oil and natural gas and fluctuations in oil and natural gas prices; | |
• | competitive actions by other companies; | |
• | changes in governmental policies, laws or regulations and actions or restrictions of regulatory agencies; | |
• | government regulation of exploration and production technology, including hydraulic fracturing; | |
• | the results of financing efforts, including our ability to obtain financing with favorable terms; | |
• | our partners’ ability to fund their capital commitments and otherwise fulfill their operating and financial obligations; | |
• | water withdrawal or usage may be subject to state and local laws, regulations or permit requirements, and there is no assurance that all our water interests or rights will be available for withdrawal or use; and | |
• | the final resolutions or outcomes with respect to our contingent and other liabilities related to our business. |
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• | Recognizing and responsibly delivering the greatest value from every acre; and | |
• | Growing through strategic and disciplined investments. |
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For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Revenues: | ||||||||||||
Real estate | $ | 68,269 | $ | 94,436 | $ | 98,859 | ||||||
Mineral resources | 24,790 | 36,256 | 47,671 | |||||||||
Fiber resources | 8,301 | 15,559 | 13,192 | |||||||||
Total revenues | $ | 101,360 | $ | 146,251 | $ | 159,722 | ||||||
Segment earnings (loss): | ||||||||||||
Real estate | $ | (4,634 | ) | $ | 3,182 | $ | 9,075 | |||||
Mineral resources | 22,783 | 32,370 | 44,076 | |||||||||
Fiber resources | 5,058 | 9,622 | 8,896 | |||||||||
Total segment earnings | 23,207 | 45,174 | 62,047 | |||||||||
Items not allocated to segments: | ||||||||||||
General and administrative | (17,341 | ) | (22,399 | ) | (19,318 | ) | ||||||
Share-based compensation | (11,596 | ) | (11,998 | ) | (4,516 | ) | ||||||
Gain on sale of assets | 28,607 | 104,047 | — | |||||||||
Interest expense | (16,446 | ) | (20,459 | ) | (21,283 | ) | ||||||
Other non-operating income | 1,164 | 375 | 279 | |||||||||
Income before taxes | 7,595 | 94,740 | 17,209 | |||||||||
Income tax expense | (2,470 | ) | (35,633 | ) | (5,235 | ) | ||||||
Net income | $ | 5,125 | $ | 59,107 | $ | 11,974 | ||||||
• | Real estate segment earnings declined principally due to lower undeveloped land sales from our retail sales program. In addition, segment earnings include $11,271,000 of non-cash impairment charges principally associated with residential development projects located near Atlanta, Georgia and Fort Worth, Texas and with a commercial real estate project near the Texas gulf coast. | |
• | Mineral resources segment earnings declined principally due to decreased lease bonus revenues as a result of reduced leasing activity by exploration and production companies that are now concentrating investments in drilling activities to hold existing leases rather than leasing new mineral interests in our basins. This decline in lease bonus revenue was partially offset by increased oil and natural gas production and higher oil prices, including our share of venture activity. | |
• | Fiber resources segment earnings decreased principally due to reduced harvest activity resulting from the sale of over 140,000 acres of timberland in 2010 and 2009 and postponing harvest plans on about 55,000 acres classified as held for sale. | |
• | Gain on sale of assets represents the sale of about 24,000 acres of timber and timberland in Georgia, Alabama and Texas for $38,778,000 in accordance with our near-term strategic initiatives. |
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• | Interest expense decreased principally due to lower interest rates as a result of the maturity of our interest rate swap agreement and decreased amortization of prepaid loan fees due to refinancing and extending our senior credit facility in 2010. |
• | Real estate segment earnings were negatively impacted by $10,619,000 of non-cash impairment charges principally associated with a residential condominium project located in Austin, Texas, two joint-venture projects located in Tampa, Florida and an equity investment in an unconsolidated venture. Segment earnings were also negatively impacted by $3,702,000 in environmental remediation charges. | |
• | Mineral resources segment earnings declined principally due to lower royalty revenues as result of lower natural gas and oil prices, and to a lesser extent, lower lease bonus revenues from decreased leasing activity and increased infrastructure costs associated with developing our mineral resources organization. | |
• | Fiber resources segment earnings increased principally due to increased volumes and higher prices related to a higher mix of larger pine sawtimber sold from our Texas forest. | |
• | General and administrative expenses include about $3,200,000 paid to outside advisors regarding an evaluation by our Board of Directors of an unsolicited shareholder proposal and $2,213,000 in non-cash impairment charges related to the sale of our undivided 15 percent interest in corporate aircraft contributed to us by Temple-Inland at spin-off. | |
• | Share-based compensation increased principally due to our higher stock price and increased number of cash-settled equity awards. | |
• | Gain on sale of assets represents the sale of about 95,000 acres of timber and timberland in Georgia and Alabama for $158,603,000 in accordance with our near-term strategic initiatives. | |
• | Interest expense decreased as result of lower debt levels. |
• | Real estate segment earnings were negatively impacted by decreased sales of residential lots, decreased commercial sales activity, increased costs associated with environmental remediation, and asset impairments. | |
• | Mineral resources segment earnings benefited from bonus payments received for leasing over 61,500 net mineral acres. Mineral resources segment earnings also benefited from increased production volumes from new well activity and higher average oil and natural gas prices. | |
• | General and administrative expenses increased as a result of costs associated with the development of corporate functions as well asstart-up costs necessary as a stand-alone public company. | |
• | Share-based compensation expense increased primarily due to accelerated expense recognition in conjunction with awards granted to retirement-eligible employees and an increase in the number of participants in our plan. | |
• | Interest expense increased as a result of higher debt levels and higher borrowing costs. |
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• | Real estate, | |
• | Mineral resources, and | |
• | Fiber resources. |
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For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Revenues | $ | 68,269 | $ | 94,436 | $ | 98,859 | ||||||
Cost of sales | (46,225 | ) | (46,307 | ) | (55,131 | ) | ||||||
Operating expenses | (28,598 | ) | (34,319 | ) | (35,898 | ) | ||||||
(6,554 | ) | 13,810 | 7,830 | |||||||||
Equity in earnings (loss) of unconsolidated ventures | 2,629 | (8,161 | ) | 3,480 | ||||||||
Less: Net income attributable to noncontrolling interests | (709 | ) | (2,467 | ) | (2,235 | ) | ||||||
Segment (loss) earnings | $ | (4,634 | ) | $ | 3,182 | $ | 9,075 | |||||
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Residential real estate | $ | 24,540 | $ | 27,677 | $ | 38,110 | ||||||
Commercial real estate | 352 | 793 | 9,440 | |||||||||
Undeveloped land | 20,111 | 46,580 | 26,005 | |||||||||
Income producing properties | 21,225 | 18,214 | 21,488 | |||||||||
Other | 2,041 | 1,172 | 3,816 | |||||||||
Total revenues | $ | 68,269 | $ | 94,436 | $ | 98,859 | ||||||
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For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Residential real estate: | ||||||||||||
Lots sold | 442 | 483 | 812 | |||||||||
Average price per lot sold | $ | 55,076 | $ | 53,469 | $ | 45,712 | ||||||
Commercial real estate: | ||||||||||||
Acres sold | 2 | 2 | 55 | |||||||||
Average price per acre sold | $ | 146,047 | $ | 433,406 | $ | 172,346 | ||||||
Undeveloped land: | ||||||||||||
Acres sold | 5,812 | 18,204 | 5,577 | |||||||||
Average price per acre sold | $ | 3,460 | $ | 2,550 | $ | 4,663 |
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Year-End | ||||||||
2010 | 2009 | |||||||
Owned and consolidated ventures: | ||||||||
Entitled, developed and under development projects | ||||||||
Number of projects | 54 | 54 | ||||||
Residential lots remaining | 17,780 | 20,186 | ||||||
Commercial acres remaining | 1,774 | 1,702 | ||||||
Undeveloped land and land in the entitlement process | ||||||||
Number of projects | 18 | 19 | ||||||
Acres in entitlement process | 29,670 | 30,370 | ||||||
Acres undeveloped(a) | 168,724 | 198,063 | ||||||
Ventures accounted for using the equity method: | ||||||||
Ventures’ lot sales (for the year) | ||||||||
Lots sold | 362 | 159 | ||||||
Average price per lot sold | $ | 42,602 | $ | 60,589 | ||||
Ventures’ entitled, developed and under development projects | ||||||||
Number of projects | 22 | 21 | ||||||
Residential lots remaining | 9,634 | 8,961 | ||||||
Commercial acres sold (for the year) | 15 | 4 | ||||||
Average price per acre sold | $ | 81,318 | $ | 188,144 | ||||
Commercial acres remaining | 590 | 645 | ||||||
Ventures’ undeveloped land and land in the entitlement process | ||||||||
Number of projects | — | 2 | ||||||
Acres in entitlement process | — | 1,080 | ||||||
Acres sold (for the year) | — | 1 | ||||||
Average price per acre sold | $ | — | $ | 10,000 | ||||
Acres undeveloped | 5,731 | 5,517 |
(a) | Includes 55,000 acres classified as assets held for sale. |
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For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Revenues | $ | 24,790 | $ | 36,256 | $ | 47,671 | ||||||
Cost of sales | (1,097 | ) | (922 | ) | (1,714 | ) | ||||||
Operating expenses | (2,982 | ) | (3,354 | ) | (3,043 | ) | ||||||
20,711 | 31,980 | 42,914 | ||||||||||
Equity in earnings of unconsolidated ventures | 2,072 | 390 | 1,162 | |||||||||
Segment earnings | $ | 22,783 | $ | 32,370 | $ | 44,076 | ||||||
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Royalties | $ | 13,724 | $ | 11,910 | $ | 21,639 | ||||||
Other lease revenues | 11,066 | 24,346 | 26,032 | |||||||||
Total revenues | $ | 24,790 | $ | 36,256 | $ | 47,671 | ||||||
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For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Consolidated entities: | ||||||||||||
Oil production (barrels) | 115,400 | 107,200 | 87,900 | |||||||||
Average price per barrel | $ | 73.09 | $ | 56.85 | $ | 106.66 | ||||||
Natural gas production (millions of cubic feet) | 1,223.6 | 1,411.6 | 1,363.4 | |||||||||
Average price per thousand cubic feet | $ | 4.32 | $ | 4.12 | $ | 8.76 | ||||||
Our share of ventures accounted for using the equity method: | ||||||||||||
Natural gas production (millions of cubic feet) | 572.8 | 82.1 | — | |||||||||
Average price per thousand cubic feet | $ | 4.12 | $ | 3.80 | $ | — |
Total consolidated and our share of equity method ventures: | ||||||||||||
Oil production (barrels) | 115,400 | 107,200 | 87,900 | |||||||||
Average price per barrel | $ | 73.09 | $ | 56.85 | $ | 106.66 | ||||||
Natural gas production (millions of cubic feet) | 1,796.4 | 1,493.7 | 1,363.4 | |||||||||
Average price per thousand cubic feet | $ | 4.26 | $ | 4.10 | $ | 8.76 |
Held By | ||||||||||||||||
State | Unleased | Leased(b) | Production(c) | Total(d) | ||||||||||||
(Net acres) | ||||||||||||||||
Texas | 157,000 | 70,000 | 25,000 | 252,000 | ||||||||||||
Louisiana | 121,000 | 18,000 | 5,000 | 144,000 | ||||||||||||
Georgia | 168,000 | — | — | 168,000 | ||||||||||||
Alabama | 40,000 | — | — | 40,000 | ||||||||||||
California | 1,000 | — | — | 1,000 | ||||||||||||
Indiana | 1,000 | — | — | 1,000 | ||||||||||||
488,000 | 88,000 | 30,000 | 606,000 | |||||||||||||
(a) | Includes ventures. | |
(b) | Includes leases in primary lease term or for which a delayed rental payment has been received. | |
(c) | Acres being held by production are producing oil or natural gas in paying quantities. |
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(d) | Texas, Louisiana, California and Indiana net acres are calculated as the gross number of surface acres multiplied by our percentage ownership of the mineral interest. Alabama and Georgia net acres are calculated as the gross number of surface acres multiplied by our estimated percentage ownership of the mineral interest based on county sampling. Excludes 463 net mineral acres located in Colorado including 382 acres leased and 26 acres held by production. |
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Revenues | $ | 8,301 | $ | 15,559 | $ | 13,192 | ||||||
Cost of sales | (1,640 | ) | (3,396 | ) | (3,357 | ) | ||||||
Operating expenses | (2,274 | ) | (2,728 | ) | (2,611 | ) | ||||||
4,387 | 9,435 | 7,224 | ||||||||||
Other operating income | 671 | 187 | 1,672 | |||||||||
Segment earnings | $ | 5,058 | $ | 9,622 | $ | 8,896 | ||||||
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Fiber | $ | 6,491 | $ | 13,478 | $ | 10,987 | ||||||
Recreational leases and other | 1,810 | 2,081 | 2,205 | |||||||||
Total revenues | $ | 8,301 | $ | 15,559 | $ | 13,192 | ||||||
�� |
40
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Pulpwood tons sold | 392,900 | 810,100 | 917,000 | |||||||||
Average pulpwood price per ton | $ | 9.93 | $ | 8.53 | $ | 8.52 | ||||||
Sawtimber tons sold | 144,300 | 331,300 | 162,900 | |||||||||
Average sawtimber price per ton | $ | 17.94 | $ | 19.82 | $ | 19.51 | ||||||
Total tons sold | 537,200 | 1,141,400 | 1,079,900 | |||||||||
Average price per ton | $ | 12.08 | $ | 11.81 | $ | 10.17 |
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Average recreational acres leased | 208,100 | 249,200 | 287,200 | |||||||||
Average price per leased acre | $ | 8.32 | $ | 8.25 | $ | 7.44 |
41
42
43
Senior | ||||
Credit Facility | ||||
(In thousands) | ||||
Borrowing base availability | $ | 300,000 | ||
Less: borrowings | (125,000 | ) | ||
Less: letters of credit | (3,007 | ) | ||
Unused borrowing capacity | $ | 171,993 | ||
Financial Covenant | Requirement | Year-End 2010 | ||
Interest Coverage Ratio(a) | ³ 1.05:1.0 | 4.17:1.0 | ||
Revenues/Capital Expenditures Ratio(b) | ³ 1.00:1.0 | 6.26:1.0 | ||
Total Leverage Ratio(c) | £ 40% | 19.6% | ||
Net Worth(d) | > $411 million | $503 million | ||
Collateral Value to Loan Commitment Ratio(e) | ³ 1.60:1.0 | 2.39:1.0 |
(a) | Calculated as EBITDA (earnings before interest, taxes, depreciation and amortization), plus non-cash compensation expense, plus other non-cash expenses, divided by interest expense excluding loan fees. This covenant is applied at the end of each quarter on a rolling four quarter basis. | |
(b) | Calculated as total gross revenues, plus our pro rata share of the operating revenues from unconsolidated ventures, divided by capital expenditures. Capital expenditures are defined as consolidated development |
44
and acquisition expenditures plus our pro rata share of unconsolidated ventures’ development and acquisition expenditures. This covenant is applied at the end of each quarter on a rolling four quarter basis. | ||
(c) | Calculated as total funded debt divided by adjusted asset value. Total funded debt includes indebtedness for borrowed funds, secured liabilities and reimbursement obligations with respect to letters of credit or similar instruments. Adjusted asset value is defined as the sum of unrestricted cash and cash equivalents, timberlands, high value timberlands, raw entitled lands, entitled land under development, minerals business, other real estate owned at book value without regard to any indebtedness and our pro rata share of joint ventures’ book value without regard to any indebtedness. This covenant is applied at the end of each quarter. | |
(d) | Calculated as the amount by which consolidated total assets exceeds consolidated total liabilities. At year-end 2010, the requirement is $411,323,000, computed as: $409,500,000, plus 85 percent of the aggregate net proceeds received by us from any equity offering, plus 75 percent of all positive net income, on a cumulative basis. This covenant is applied at the end of each quarter. | |
(e) | Calculated as the total collateral value of timberland, high value timberland and our minerals business, divided by total aggregate loan commitment. This covenant is applied at the end of each quarter. |
Payments Due or Expiring by Year | ||||||||||||||||||||
Total | 2011 | 2012-13 | 2014-15 | Thereafter | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Debt(a) | $ | 221,589 | $ | 47,506 | $ | 16,916 | $ | 127,231 | $ | 29,936 | ||||||||||
Interest payments on debt | 51,300 | 10,993 | 20,896 | 16,640 | 2,771 | |||||||||||||||
Purchase obligations | 11,392 | 11,392 | — | — | — | |||||||||||||||
Operating leases | 22,390 | 2,621 | 4,828 | 3,979 | 10,962 | |||||||||||||||
Venture contributions | 1,708 | 1,708 | — | — | — | |||||||||||||||
Total | $ | 308,379 | $ | 74,220 | $ | 42,640 | $ | 147,850 | 43,669 | |||||||||||
(a) | Items included in our balance sheet. In 2011, payments due or expiring include about $34,366,000 in consolidated venture borrowings which are non-recourse to us. We believe it is likely that the venture will be able to extend or refinance these borrowings in 2011; however, there is no assurance that this can be done. We do not believe that the ultimate resolution of this matter will have a significant effect on our earnings or financial position. |
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Payments Due or Expiring by Year | ||||||||||||||||||||
Total | 2011 | 2012-13 | 2014-15 | Thereafter | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Performance bonds | $ | 5,820 | $ | 5,325 | $ | 475 | $ | 20 | $ | — | ||||||||||
Standby letters of credit | 3,007 | 3,000 | 7 | — | — | |||||||||||||||
Recourse obligations | 3,231 | 751 | 131 | 1,057 | 1,292 | |||||||||||||||
Total | $ | 12,058 | $ | 9,076 | $ | 613 | $ | 1,077 | $ | 1,292 | ||||||||||
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• | Investment in Real Estate and Cost of Real Estate Sales— In allocating costs to real estate owned and real estate sold, we must estimate current and future real estate values. Our estimates of future real estate values sometimes must extend over periods 15 to 20 years from today and are dependent on numerous assumptions including our intentions and future market and economic conditions. In addition, when we sell real estate from projects that are not finished, we must estimate future development costs through completion. Differences between our estimates and actual results will affect future carrying values and operating results. | |
• | Impairment of Long-Lived Assets— Measuring assets for impairment requires estimating future fair values based on our intentions as to holding periods, future operating cash flows and the residual value of assets under review, primarily undeveloped land. Depending on the asset under review, we use varying methods to determine fair value, such as discounting expected future cash flows, determining resale values by market, or applying a capitalization rate to net operating income using prevailing rates in a given market. Changes in economic conditions, demand for real estate, and the projected net operating income for a specific property will inevitably change our estimates. | |
• | Share-Based Compensation— We use the Black-Scholes option pricing model to determine the fair value of stock options. The determination of the fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the stock price as well as assumptions regarding a number of other variables. These variables include expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors (term of option), risk-free interest rate and expected dividends. We have limited historical experience as a stand-alone company so we utilized alternative methods in determining our valuation assumptions. The expected life was based on the simplified method utilizing the midpoint between the vesting period and the contractual life of the awards. The expected stock price volatility was based on historical prices of our peers’ common stock for a period corresponding to the expected life of the options. Pre-vesting forfeitures are estimated based upon the pool of participants and their expected activity and historical trends. | |
• | Income Taxes— In preparing our consolidated financial statements, significant judgment is required to estimate our income taxes. Our estimates are based on our interpretation of federal and state tax laws. We estimate our actual current tax due and assess temporary and permanent differences resulting from differing treatment of items for tax and accounting purposes. The temporary differences result in deferred tax assets and liabilities, which are included in our consolidated balance sheet. If needed, we record a valuation allowance against our deferred tax assets. In addition, when we believe a tax position is supportable but the outcome uncertain, we include the item in our tax return but do not recognize the related benefit in our provision for taxes. Instead, we record a reserve for unrecognized tax benefits, which represents our expectation of the most likely outcome considering the technical merits and specific facts of the position. Changes to liabilities are only made when an event occurs that changes the most likely outcome, such as settlement with the relevant tax authority, expiration of statutes of |
48
limitations, changes in tax law, or recent court rulings. Adjustments to temporary differences, permanent differences or uncertain tax positions could materially impact our financial position, cash flow and results of operation. |
• | Oil and Natural Gas Reserves —The estimation of the oil and natural gas reserve is a significant estimate. On an annual basis, our consulting petroleum engineering firm, with our assistance, prepares estimates of crude oil and natural gas reserves based on available geologic and seismic data, reservoir pressure data, core analysis reports, well logs, analogous reservoir performance history, production data and other available sources of engineering, geological and geophysical information. Oil and natural gas prices are volatile and largely affected by worldwide or domestic production and consumption and are outside our control. |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. |
At Year-End | ||||||||
Change in Interest Rates | 2010 | 2009 | ||||||
(In thousands) | ||||||||
+2% | $ | (3,728 | ) | $ | (4,100 | ) | ||
+1% | (1,917 | ) | (2,132 | ) | ||||
−1% | 1,917 | 2,132 | ||||||
−2% | 3,833 | 4,264 |
49
Item 8. | Financial Statements and Supplementary Data. |
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. |
Item 9A. | Controls and Procedures. |
Item 9B. | Other Information. |
50
Item 10. | Directors, Executive Officers and Corporate Governance. |
Year First | ||||||||||
Elected to | ||||||||||
Name | Age | the Board | Principal Occupation | |||||||
Kenneth M. Jastrow, II | 63 | 2007 | Non-Executive Chairman of Forestar Group Inc. | |||||||
Louis R. Brill | 69 | 2007 | Former Chief Accounting Officer of Temple-Inland Inc. | |||||||
Kathleen Brown | 65 | 2007 | Chairman of Investment Banking for the Midwest Region, Goldman, Sachs & Co. | |||||||
William G. Currie | 63 | 2007 | Chairman of Universal Forest Products, Inc. | |||||||
James M. DeCosmo | 52 | 2007 | President and Chief Executive Officer of Forestar Group Inc. | |||||||
Michael E. Dougherty | 70 | 2008 | Founder and Chairman of Dougherty Financial Group LLC | |||||||
James A. Johnson | 67 | 2007 | Vice Chairman of Perseus LLC | |||||||
William C. Powers, Jr. | 64 | 2007 | President of The University of Texas at Austin | |||||||
James A. Rubright | 64 | 2007 | Chairman and Chief Executive Officer of Rock-Tenn Company | |||||||
Richard M. Smith | 65 | 2007 | President of Pinkerton Foundation |
Item 11. | Executive Compensation. |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
Number of Securities | ||||||||||||
Remaining Available for | ||||||||||||
Number of Securities to be | Weighted-Average | Future Issuance Under | ||||||||||
Issued Upon Exercise of | Exercise Price of | Equity Compensation Plans | ||||||||||
Outstanding Options, | Outstanding Options, | (Excluding Securities | ||||||||||
Plan Category | Warrants and Rights(1)(2) | Warrants and Rights | Reflected in Column (a)) | |||||||||
(a) | (b) | (c) | ||||||||||
Equity compensation plans approved by security holders | 2,310,797 | $ | 21.85 | 3,096,858 | ||||||||
Equity compensation plans not approved by security holders | None | None | None | |||||||||
Total | 2,310,797 | $ | 21.85 | 3,096,858 |
• | ||
• |
Maximum | ||||||||||||||||
Total Number | Number of | |||||||||||||||
of Shares | Shares That | |||||||||||||||
Purchased as | May Yet be | |||||||||||||||
Total | Average | Part of Publicly | Purchased | |||||||||||||
Number of | Price | Announced | Under the | |||||||||||||
Shares | Paid per | Plans or | Plans | |||||||||||||
Period | Purchased(2) | Share | Programs | or Programs | ||||||||||||
Month 1 (10/1/2009 — 10/31/2009) | — | $ | — | — | 7,000,000 | |||||||||||
Month 2 (11/1/2009 — 11/30/2009) | 57,512 | $ | 18.67 | — | 7,000,000 | |||||||||||
Month 3 (12/1/2009 — 12/31/2009) | 56,134 | $ | 21.88 | — | 7,000,000 | |||||||||||
Total | 113,646 | $ | 20.26 | — | ||||||||||||
• |
2634
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Revenues | $ | 68,269 | $ | 94,436 | $ | 98,859 | ||||||
Cost of sales | (46,225 | ) | (46,307 | ) | (55,131 | ) | ||||||
Operating expenses | (28,598 | ) | (34,319 | ) | (35,898 | ) | ||||||
(6,554 | ) | 13,810 | 7,830 | |||||||||
Equity in earnings (loss) of unconsolidated ventures | 2,629 | (8,161 | ) | 3,480 | ||||||||
Less: Net income attributable to noncontrolling interests | (709 | ) | (2,467 | ) | (2,235 | ) | ||||||
Segment (loss) earnings | $ | (4,634 | ) | $ | 3,182 | $ | 9,075 | |||||
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Residential real estate | $ | 24,540 | $ | 27,677 | $ | 38,110 | ||||||
Commercial real estate | 352 | 793 | 9,440 | |||||||||
Undeveloped land | 20,111 | 46,580 | 26,005 | |||||||||
Income producing properties | 21,225 | 18,214 | 21,488 | |||||||||
Other | 2,041 | 1,172 | 3,816 | |||||||||
Total revenues | $ | 68,269 | $ | 94,436 | $ | 98,859 | ||||||
2735
For the Year | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Real estate | $ | 94,436 | $ | 98,859 | $ | 142,729 | $ | 180,151 | $ | 118,121 | ||||||||||
Mineral resources | 36,256 | 47,671 | 20,818 | 27,980 | 21,049 | |||||||||||||||
Fiber resources | 15,559 | 13,192 | 14,439 | 17,429 | 16,317 | |||||||||||||||
Total revenues | $ | 146,251 | $ | 159,722 | $ | 177,986 | $ | 225,560 | $ | 155,487 | ||||||||||
Segment earnings: | ||||||||||||||||||||
Real estate(a) | $ | 3,182 | $ | 9,075 | $ | 39,507 | $ | 70,271 | $ | 46,418 | ||||||||||
Mineral resources | 32,370 | 44,076 | 18,581 | 26,305 | 19,629 | |||||||||||||||
Fiber resources | 9,622 | 8,896 | 7,950 | 6,711 | 5,221 | |||||||||||||||
Total segment earnings | 45,174 | 62,047 | 66,038 | 103,287 | 71,268 | |||||||||||||||
Items not allocated to segments: | ||||||||||||||||||||
General and administrative | (22,399 | ) | (19,318 | ) | (17,413 | ) | (14,048 | ) | (9,113 | ) | ||||||||||
Share-based compensation | (11,998 | ) | (4,516 | ) | (1,397 | ) | (1,275 | ) | (443 | ) | ||||||||||
Gain on sale of assets(b) | 104,047 | — | — | — | — | |||||||||||||||
Interest expense | (20,459 | ) | (21,283 | ) | (9,229 | ) | (6,229 | ) | (6,439 | ) | ||||||||||
Other non-operating income(c) | 375 | 279 | 705 | 79 | 483 | |||||||||||||||
Income before taxes | 94,740 | 17,209 | 38,704 | 81,814 | 55,756 | |||||||||||||||
Income tax expense | (35,633 | ) | (5,235 | ) | (13,909 | ) | (29,970 | ) | (20,859 | ) | ||||||||||
Net income | $ | 59,107 | $ | 11,974 | $ | 24,795 | $ | 51,844 | $ | 34,897 | ||||||||||
Diluted net income per share(d) | $ | 1.64 | $ | 0.33 | $ | 0.70 | $ | 1.47 | $ | 0.99 | ||||||||||
Average diluted shares outstanding(d) | 36,102 | 35,892 | 35,380 | 35,380 | 35,380 | |||||||||||||||
At year-end: | ||||||||||||||||||||
Assets | $ | 784,734 | $ | 834,576 | $ | 748,726 | $ | 620,174 | $ | 543,944 | ||||||||||
Debt | $ | 216,626 | $ | 337,402 | $ | 266,015 | $ | 161,117 | $ | 121,948 | ||||||||||
Noncontrolling interest | $ | 5,879 | $ | 6,660 | $ | 8,629 | $ | 7,746 | $ | 7,292 | ||||||||||
Forestar Group Inc. shareholders’/Parent’s equity | $ | 512,456 | $ | 447,292 | $ | 433,201 | $ | 418,052 | $ | 381,290 | ||||||||||
Ratio of total debt to total capitalization | 29 | % | 43 | % | 38 | % | 27 | % | 24 | % |
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Residential real estate: | ||||||||||||
Lots sold | 442 | 483 | 812 | |||||||||
Average price per lot sold | $ | 55,076 | $ | 53,469 | $ | 45,712 | ||||||
Commercial real estate: | ||||||||||||
Acres sold | 2 | 2 | 55 | |||||||||
Average price per acre sold | $ | 146,047 | $ | 433,406 | $ | 172,346 | ||||||
Undeveloped land: | ||||||||||||
Acres sold | 5,812 | 18,204 | 5,577 | |||||||||
Average price per acre sold | $ | 3,460 | $ | 2,550 | $ | 4,663 |
36
Year-End | ||||||||
2010 | 2009 | |||||||
Owned and consolidated ventures: | ||||||||
Entitled, developed and under development projects | ||||||||
Number of projects | 54 | 54 | ||||||
Residential lots remaining | 17,780 | 20,186 | ||||||
Commercial acres remaining | 1,774 | 1,702 | ||||||
Undeveloped land and land in the entitlement process | ||||||||
Number of projects | 18 | 19 | ||||||
Acres in entitlement process | 29,670 | 30,370 | ||||||
Acres undeveloped(a) | 168,724 | 198,063 | ||||||
Ventures accounted for using the equity method: | ||||||||
Ventures’ lot sales (for the year) | ||||||||
Lots sold | 362 | 159 | ||||||
Average price per lot sold | $ | 42,602 | $ | 60,589 | ||||
Ventures’ entitled, developed and under development projects | ||||||||
Number of projects | 22 | 21 | ||||||
Residential lots remaining | 9,634 | 8,961 | ||||||
Commercial acres sold (for the year) | 15 | 4 | ||||||
Average price per acre sold | $ | 81,318 | $ | 188,144 | ||||
Commercial acres remaining | 590 | 645 | ||||||
Ventures’ undeveloped land and land in the entitlement process | ||||||||
Number of projects | — | 2 | ||||||
Acres in entitlement process | — | 1,080 | ||||||
Acres sold (for the year) | — | 1 | ||||||
Average price per acre sold | $ | — | $ | 10,000 | ||||
Acres undeveloped | 5,731 | 5,517 |
(a) |
37
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Revenues | $ | 24,790 | $ | 36,256 | $ | 47,671 | ||||||
Cost of sales | (1,097 | ) | (922 | ) | (1,714 | ) | ||||||
Operating expenses | (2,982 | ) | (3,354 | ) | (3,043 | ) | ||||||
20,711 | 31,980 | 42,914 | ||||||||||
Equity in earnings of unconsolidated ventures | 2,072 | 390 | 1,162 | |||||||||
Segment earnings | $ | 22,783 | $ | 32,370 | $ | 44,076 | ||||||
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Royalties | $ | 13,724 | $ | 11,910 | $ | 21,639 | ||||||
Other lease revenues | 11,066 | 24,346 | 26,032 | |||||||||
Total revenues | $ | 24,790 | $ | 36,256 | $ | 47,671 | ||||||
38
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Consolidated entities: | ||||||||||||
Oil production (barrels) | 115,400 | 107,200 | 87,900 | |||||||||
Average price per barrel | $ | 73.09 | $ | 56.85 | $ | 106.66 | ||||||
Natural gas production (millions of cubic feet) | 1,223.6 | 1,411.6 | 1,363.4 | |||||||||
Average price per thousand cubic feet | $ | 4.32 | $ | 4.12 | $ | 8.76 | ||||||
Our share of ventures accounted for using the equity method: | ||||||||||||
Natural gas production (millions of cubic feet) | 572.8 | 82.1 | — | |||||||||
Average price per thousand cubic feet | $ | 4.12 | $ | 3.80 | $ | — |
Total consolidated and our share of equity method ventures: | ||||||||||||
Oil production (barrels) | 115,400 | 107,200 | 87,900 | |||||||||
Average price per barrel | $ | 73.09 | $ | 56.85 | $ | 106.66 | ||||||
Natural gas production (millions of cubic feet) | 1,796.4 | 1,493.7 | 1,363.4 | |||||||||
Average price per thousand cubic feet | $ | 4.26 | $ | 4.10 | $ | 8.76 |
Held By | ||||||||||||||||
State | Unleased | Leased(b) | Production(c) | Total(d) | ||||||||||||
(Net acres) | ||||||||||||||||
Texas | 157,000 | 70,000 | 25,000 | 252,000 | ||||||||||||
Louisiana | 121,000 | 18,000 | 5,000 | 144,000 | ||||||||||||
Georgia | 168,000 | — | — | 168,000 | ||||||||||||
Alabama | 40,000 | — | — | 40,000 | ||||||||||||
California | 1,000 | — | — | 1,000 | ||||||||||||
Indiana | 1,000 | — | — | 1,000 | ||||||||||||
488,000 | 88,000 | 30,000 | 606,000 | |||||||||||||
(a) | Includes ventures. | |
(b) | ||
(c) | ||
2839
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Revenues | $ | 8,301 | $ | 15,559 | $ | 13,192 | ||||||
Cost of sales | (1,640 | ) | (3,396 | ) | (3,357 | ) | ||||||
Operating expenses | (2,274 | ) | (2,728 | ) | (2,611 | ) | ||||||
4,387 | 9,435 | 7,224 | ||||||||||
Other operating income | 671 | 187 | 1,672 | |||||||||
Segment earnings | $ | 5,058 | $ | 9,622 | $ | 8,896 | ||||||
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
Fiber | $ | 6,491 | $ | 13,478 | $ | 10,987 | ||||||
Recreational leases and other | 1,810 | 2,081 | 2,205 | |||||||||
Total revenues | $ | 8,301 | $ | 15,559 | $ | 13,192 | ||||||
�� |
2940
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Pulpwood tons sold | 392,900 | 810,100 | 917,000 | |||||||||
Average pulpwood price per ton | $ | 9.93 | $ | 8.53 | $ | 8.52 | ||||||
Sawtimber tons sold | 144,300 | 331,300 | 162,900 | |||||||||
Average sawtimber price per ton | $ | 17.94 | $ | 19.82 | $ | 19.51 | ||||||
Total tons sold | 537,200 | 1,141,400 | 1,079,900 | |||||||||
Average price per ton | $ | 12.08 | $ | 11.81 | $ | 10.17 |
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Average recreational acres leased | 208,100 | 249,200 | 287,200 | |||||||||
Average price per leased acre | $ | 8.32 | $ | 8.25 | $ | 7.44 |
41
For the Year | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(In thousands) | ||||||||||||
Revenues: | ||||||||||||
Real estate | $ | 94,436 | $ | 98,859 | $ | 142,729 | ||||||
Mineral resources | 36,256 | 47,671 | 20,818 | |||||||||
Fiber resources | 15,559 | 13,192 | 14,439 | |||||||||
Total revenues | $ | 146,251 | $ | 159,722 | $ | 177,986 | ||||||
Segment earnings: | ||||||||||||
Real estate | $ | 3,182 | $ | 9,075 | $ | 39,507 | ||||||
Mineral resources | 32,370 | 44,076 | 18,581 | |||||||||
Fiber resources | 9,622 | 8,896 | 7,950 | |||||||||
Total segment earnings | 45,174 | 62,047 | 66,038 | |||||||||
Items not allocated to segments: | ||||||||||||
General & administrative | (22,399 | ) | (19,318 | ) | (17,413 | ) | ||||||
Share-based compensation | (11,998 | ) | (4,516 | ) | (1,397 | ) | ||||||
Gain on sale of assets | 104,047 | — | — | |||||||||
Interest expense | (20,459 | ) | (21,283 | ) | (9,229 | ) | ||||||
Other non-operating income | 375 | 279 | 705 | |||||||||
Income before taxes | 94,740 | 17,209 | 38,704 | |||||||||
Income tax expense | (35,633 | ) | (5,235 | ) | (13,909 | ) | ||||||
Net income | $ | 59,107 | $ | 11,974 | $ | 24,795 | ||||||
3042
43
Senior | ||||
Credit Facility | ||||
(In thousands) | ||||
Borrowing base availability | $ | 300,000 | ||
Less: borrowings | (125,000 | ) | ||
Less: letters of credit | (3,007 | ) | ||
Unused borrowing capacity | $ | 171,993 | ||
Financial Covenant | Requirement | Year-End 2010 | ||
Interest Coverage Ratio(a) | ³ 1.05:1.0 | 4.17:1.0 | ||
Revenues/Capital Expenditures Ratio(b) | ³ 1.00:1.0 | 6.26:1.0 | ||
Total Leverage Ratio(c) | £ 40% | 19.6% | ||
Net Worth(d) | > $411 million | $503 million | ||
Collateral Value to Loan Commitment Ratio(e) | ³ 1.60:1.0 | 2.39:1.0 |
(a) | Calculated as EBITDA (earnings before interest, taxes, depreciation and amortization), plus non-cash compensation expense, plus other non-cash expenses, divided by interest expense excluding loan fees. This covenant is applied at the end of each quarter on a rolling four quarter basis. | |
(b) | Calculated as total gross revenues, plus our pro rata share of the operating revenues from unconsolidated ventures, divided by capital expenditures. Capital expenditures are defined as consolidated development |
44
and acquisition expenditures plus our pro rata share of unconsolidated ventures’ development and acquisition expenditures. This covenant is applied at the end of each quarter on a rolling four quarter basis. | ||
(c) | Calculated as total funded debt divided by adjusted asset value. Total funded debt includes indebtedness for borrowed funds, secured liabilities and reimbursement obligations with respect to letters of credit or similar instruments. Adjusted asset value is defined as the sum of unrestricted cash and cash equivalents, timberlands, high value timberlands, raw entitled lands, entitled land under development, minerals business, other real estate owned at book value without regard to any indebtedness and our pro rata share of joint ventures’ book value without regard to any indebtedness. This covenant is applied at the end of each quarter. | |
(d) | Calculated as the amount by which consolidated total assets exceeds consolidated total liabilities. At year-end 2010, the requirement is $411,323,000, computed as: $409,500,000, plus 85 percent of the aggregate net proceeds received by us from any equity offering, plus 75 percent of all positive net income, on a cumulative basis. This covenant is applied at the end of each quarter. | |
(e) | Calculated as the total collateral value of timberland, high value timberland and our minerals business, divided by total aggregate loan commitment. This covenant is applied at the end of each quarter. |
Payments Due or Expiring by Year | ||||||||||||||||||||
Total | 2011 | 2012-13 | 2014-15 | Thereafter | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Debt(a) | $ | 221,589 | $ | 47,506 | $ | 16,916 | $ | 127,231 | $ | 29,936 | ||||||||||
Interest payments on debt | 51,300 | 10,993 | 20,896 | 16,640 | 2,771 | |||||||||||||||
Purchase obligations | 11,392 | 11,392 | — | — | — | |||||||||||||||
Operating leases | 22,390 | 2,621 | 4,828 | 3,979 | 10,962 | |||||||||||||||
Venture contributions | 1,708 | 1,708 | — | — | — | |||||||||||||||
Total | $ | 308,379 | $ | 74,220 | $ | 42,640 | $ | 147,850 | 43,669 | |||||||||||
(a) | Items included in our balance sheet. In 2011, payments due or expiring include about $34,366,000 in consolidated venture borrowings which are non-recourse to us. We believe it is likely that the venture will be able to extend or refinance these borrowings in 2011; however, there is no assurance that this can be done. We do not believe that the ultimate resolution of this matter will have a significant effect on our earnings or financial position. |
45
Payments Due or Expiring by Year | ||||||||||||||||||||
Total | 2011 | 2012-13 | 2014-15 | Thereafter | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Performance bonds | $ | 5,820 | $ | 5,325 | $ | 475 | $ | 20 | $ | — | ||||||||||
Standby letters of credit | 3,007 | 3,000 | 7 | — | — | |||||||||||||||
Recourse obligations | 3,231 | 751 | 131 | 1,057 | 1,292 | |||||||||||||||
Total | $ | 12,058 | $ | 9,076 | $ | 613 | $ | 1,077 | $ | 1,292 | ||||||||||
46
47
• | Investment in Real Estate and Cost of Real Estate Sales— In allocating costs to real estate | |
• | ||
• | ||
• |
48
• | ||
At Year-End | ||||||||
Change in Interest Rates | 2010 | 2009 | ||||||
(In thousands) | ||||||||
+2% | $ | (3,728 | ) | $ | (4,100 | ) | ||
+1% | (1,917 | ) | (2,132 | ) | ||||
−1% | 1,917 | 2,132 | ||||||
−2% | 3,833 | 4,264 |
3149
Item 8. | Financial Statements and Supplementary Data. |
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. |
Item 9A. | Controls and Procedures. |
Item 9B. | Other Information. |
50
Item 10. | Directors, Executive Officers and Corporate Governance. |
Year First | ||||||||||
Elected to | ||||||||||
Name | Age | the Board | Principal Occupation | |||||||
Kenneth M. Jastrow, II | 63 | 2007 | Non-Executive Chairman of Forestar Group Inc. | |||||||
Louis R. Brill | 69 | 2007 | Former Chief Accounting Officer of Temple-Inland Inc. | |||||||
Kathleen Brown | 65 | 2007 | Chairman of Investment Banking for the Midwest Region, Goldman, Sachs & Co. | |||||||
William G. Currie | 63 | 2007 | Chairman of Universal Forest Products, Inc. | |||||||
James M. DeCosmo | 52 | 2007 | President and Chief Executive Officer of Forestar Group Inc. | |||||||
Michael E. Dougherty | 70 | 2008 | Founder and Chairman of Dougherty Financial Group LLC | |||||||
James A. Johnson | 67 | 2007 | Vice Chairman of Perseus LLC | |||||||
William C. Powers, Jr. | 64 | 2007 | President of The University of Texas at Austin | |||||||
James A. Rubright | 64 | 2007 | Chairman and Chief Executive Officer of Rock-Tenn Company | |||||||
Richard M. Smith | 65 | 2007 | President of Pinkerton Foundation |
Item 11. | Executive Compensation. |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
• | Real estate, | |
• | Mineral resources, and | |
• | Fiber resources. |
3234
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Revenues | $ | 94,436 | $ | 98,859 | $ | 142,729 | $ | 68,269 | $ | 94,436 | $ | 98,859 | ||||||||||||
Cost of sales | (46,307 | ) | (55,131 | ) | (75,982 | ) | (46,225 | ) | (46,307 | ) | (55,131 | ) | ||||||||||||
Operating expenses | (34,319 | ) | (35,898 | ) | (25,201 | ) | (28,598 | ) | (34,319 | ) | (35,898 | ) | ||||||||||||
13,810 | 7,830 | 41,546 | (6,554 | ) | 13,810 | 7,830 | ||||||||||||||||||
Equity in (loss) earnings of unconsolidated ventures | (8,161 | ) | 3,480 | 3,732 | ||||||||||||||||||||
Equity in earnings (loss) of unconsolidated ventures | 2,629 | (8,161 | ) | 3,480 | ||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | (2,467 | ) | (2,235 | ) | (5,771 | ) | (709 | ) | (2,467 | ) | (2,235 | ) | ||||||||||||
Segment earnings | $ | 3,182 | $ | 9,075 | $ | 39,507 | ||||||||||||||||||
Segment (loss) earnings | $ | (4,634 | ) | $ | 3,182 | $ | 9,075 | |||||||||||||||||
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Residential real estate | $ | 27,677 | $ | 38,110 | $ | 56,731 | $ | 24,540 | $ | 27,677 | $ | 38,110 | ||||||||||||
Commercial real estate | 793 | 9,440 | 43,220 | 352 | 793 | 9,440 | ||||||||||||||||||
Undeveloped land | 46,580 | 26,005 | 17,939 | 20,111 | 46,580 | 26,005 | ||||||||||||||||||
Commercial operating properties | 18,214 | 21,488 | 20,383 | |||||||||||||||||||||
Income producing properties | 21,225 | 18,214 | 21,488 | |||||||||||||||||||||
Other | 1,172 | 3,816 | 4,456 | 2,041 | 1,172 | 3,816 | ||||||||||||||||||
Total revenues | $ | 94,436 | $ | 98,859 | $ | 142,729 | $ | 68,269 | $ | 94,436 | $ | 98,859 | ||||||||||||
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For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||
Lots sold | 483 | 812 | 1,076 | 442 | 483 | 812 | ||||||||||||||||||
Average price per lot sold | $ | 53,469 | $ | 45,712 | $ | 51,079 | $ | 55,076 | $ | 53,469 | $ | 45,712 | ||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Acres sold | 2 | 55 | 166 | 2 | 2 | 55 | ||||||||||||||||||
Average price per acre sold | $ | 433,406 | $ | 172,346 | $ | 260,229 | $ | 146,047 | $ | 433,406 | $ | 172,346 | ||||||||||||
Undeveloped land: | ||||||||||||||||||||||||
Acres sold | 18,204 | 5,577 | 2,486 | 5,812 | 18,204 | 5,577 | ||||||||||||||||||
Average price per acre sold | $ | 2,550 | $ | 4,663 | $ | 6,748 | $ | 3,460 | $ | 2,550 | $ | 4,663 |
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Year-End | Year-End | |||||||||||||||
2009 | 2008 | 2010 | 2009 | |||||||||||||
Owned and consolidated ventures: | ||||||||||||||||
Entitled, developed and under development projects | ||||||||||||||||
Number of projects | 54 | 57 | 54 | 54 | ||||||||||||
Residential lots remaining | 20,186 | 20,561 | 17,780 | 20,186 | ||||||||||||
Commercial acres remaining | 1,702 | 1,624 | 1,774 | 1,702 | ||||||||||||
Undeveloped land and land in the entitlement process | ||||||||||||||||
Number of projects | 19 | 23 | 18 | 19 | ||||||||||||
Acres in entitlement process | 30,370 | 32,640 | 29,670 | 30,370 | ||||||||||||
Acres undeveloped(a) | 198,063 | 309,232 | 168,724 | 198,063 | ||||||||||||
Ventures accounted for using the equity method: | ||||||||||||||||
Ventures’ lot sales (for the year) | ||||||||||||||||
Lots sold | 159 | 248 | 362 | 159 | ||||||||||||
Average price per lot sold | $ | 60,589 | $ | 57,750 | $ | 42,602 | $ | 60,589 | ||||||||
Ventures’ entitled, developed and under development projects | ||||||||||||||||
Number of projects | 21 | 21 | 22 | 21 | ||||||||||||
Residential lots remaining | 8,961 | 9,348 | 9,634 | 8,961 | ||||||||||||
Commercial acres sold (for the year) | 4 | 65 | 15 | 4 | ||||||||||||
Average price per acre sold | $ | 188,144 | $ | 280,609 | $ | 81,318 | $ | 188,144 | ||||||||
Commercial acres remaining | 645 | 648 | 590 | 645 | ||||||||||||
Ventures’ undeveloped land and land in the entitlement process | ||||||||||||||||
Number of projects | 2 | 2 | — | 2 | ||||||||||||
Acres in entitlement process | 1,080 | 1,080 | — | 1,080 | ||||||||||||
Acres sold (for the year) | 1 | 486 | — | 1 | ||||||||||||
Average price per acre sold | $ | 10,000 | $ | 6,306 | $ | — | $ | 10,000 | ||||||||
Acres undeveloped | 5,517 | 5,641 | 5,731 | 5,517 |
(a) | Includes |
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For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Revenues | $ | 36,256 | $ | 47,671 | $ | 20,818 | $ | 24,790 | $ | 36,256 | $ | 47,671 | ||||||||||||
Cost of sales | (922 | ) | (1,714 | ) | — | (1,097 | ) | (922 | ) | (1,714 | ) | |||||||||||||
Operating expenses | (3,354 | ) | (3,043 | ) | (2,237 | ) | (2,982 | ) | (3,354 | ) | (3,043 | ) | ||||||||||||
31,980 | 42,914 | 18,581 | 20,711 | 31,980 | 42,914 | |||||||||||||||||||
Equity in earnings of unconsolidated ventures | 390 | 1,162 | — | 2,072 | 390 | 1,162 | ||||||||||||||||||
Segment earnings | $ | 32,370 | $ | 44,076 | $ | 18,581 | $ | 22,783 | $ | 32,370 | $ | 44,076 | ||||||||||||
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For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Royalties | $ | 11,910 | $ | 21,639 | $ | 13,114 | $ | 13,724 | $ | 11,910 | $ | 21,639 | ||||||||||||
Other lease revenues | 24,346 | 26,032 | 7,704 | 11,066 | 24,346 | 26,032 | ||||||||||||||||||
Total revenues | $ | 36,256 | $ | 47,671 | $ | 20,818 | $ | 24,790 | $ | 36,256 | $ | 47,671 | ||||||||||||
For the Year | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Oil production (barrels) | 107,200 | 87,900 | 94,900 | |||||||||
Average price per barrel | $ | 56.86 | $ | 106.66 | $ | 65.24 | ||||||
Natural gas production (millions of cubic feet) | 1,575.8 | 1,363.4 | 967.3 | |||||||||
Average price per thousand cubic feet | $ | 4.09 | $ | 8.76 | $ | 6.69 |
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For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Consolidated entities: | ||||||||||||
Oil production (barrels) | 115,400 | 107,200 | 87,900 | |||||||||
Average price per barrel | $ | 73.09 | $ | 56.85 | $ | 106.66 | ||||||
Natural gas production (millions of cubic feet) | 1,223.6 | 1,411.6 | 1,363.4 | |||||||||
Average price per thousand cubic feet | $ | 4.32 | $ | 4.12 | $ | 8.76 | ||||||
Our share of ventures accounted for using the equity method: | ||||||||||||
Natural gas production (millions of cubic feet) | 572.8 | 82.1 | — | |||||||||
Average price per thousand cubic feet | $ | 4.12 | $ | 3.80 | $ | — |
Total consolidated and our share of equity method ventures: | ||||||||||||
Oil production (barrels) | 115,400 | 107,200 | 87,900 | |||||||||
Average price per barrel | $ | 73.09 | $ | 56.85 | $ | 106.66 | ||||||
Natural gas production (millions of cubic feet) | 1,796.4 | 1,493.7 | 1,363.4 | |||||||||
Average price per thousand cubic feet | $ | 4.26 | $ | 4.10 | $ | 8.76 |
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Held By | Held By | |||||||||||||||||||||||||||||||
State | Unleased | Leased(b) | Production(c) | Total(d) | Unleased | Leased(b) | Production(c) | Total(d) | ||||||||||||||||||||||||
(Net acres) | (Net acres) | |||||||||||||||||||||||||||||||
Texas | 130,000 | 103,000 | 20,000 | 253,000 | 157,000 | 70,000 | 25,000 | 252,000 | ||||||||||||||||||||||||
Louisiana | 129,000 | 8,000 | 7,000 | 144,000 | 121,000 | 18,000 | 5,000 | 144,000 | ||||||||||||||||||||||||
Georgia | 180,000 | — | — | 180,000 | 168,000 | — | — | 168,000 | ||||||||||||||||||||||||
Alabama | 40,000 | 2,000 | — | 42,000 | 40,000 | — | — | 40,000 | ||||||||||||||||||||||||
California | 1,000 | — | — | 1,000 | 1,000 | — | — | 1,000 | ||||||||||||||||||||||||
Indiana | 1,000 | — | — | 1,000 | ||||||||||||||||||||||||||||
480,000 | 113,000 | 27,000 | 620,000 | 488,000 | 88,000 | 30,000 | 606,000 | |||||||||||||||||||||||||
(a) | Includes ventures. | |
(b) | Includes leases in primary lease term | |
(c) | Acres being held by production are producing oil or natural gas in paying quantities. |
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(d) | Texas, Louisiana, California and |
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Revenues | $ | 15,559 | $ | 13,192 | $ | 14,439 | $ | 8,301 | $ | 15,559 | $ | 13,192 | ||||||||||||
Cost of sales | (3,396 | ) | (3,357 | ) | (3,672 | ) | (1,640 | ) | (3,396 | ) | (3,357 | ) | ||||||||||||
Operating expenses | (2,728 | ) | (2,611 | ) | (5,060 | ) | (2,274 | ) | (2,728 | ) | (2,611 | ) | ||||||||||||
9,435 | 7,224 | 5,707 | 4,387 | 9,435 | 7,224 | |||||||||||||||||||
Other operating income | 187 | 1,672 | 2,243 | 671 | 187 | 1,672 | ||||||||||||||||||
Segment earnings | $ | 9,622 | $ | 8,896 | $ | 7,950 | $ | 5,058 | $ | 9,622 | $ | 8,896 | ||||||||||||
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For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Fiber | $ | 13,478 | $ | 10,987 | $ | 13,722 | $ | 6,491 | $ | 13,478 | $ | 10,987 | ||||||||||||
Recreational leases and other | 2,081 | 2,205 | 717 | 1,810 | 2,081 | 2,205 | ||||||||||||||||||
Total revenues | $ | 15,559 | $ | 13,192 | $ | 14,439 | $ | 8,301 | $ | 15,559 | $ | 13,192 | ||||||||||||
�� |
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For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Tons sold | 1,141,400 | 1,079,900 | 1,215,500 | |||||||||||||||||||||
Pulpwood tons sold | 392,900 | 810,100 | 917,000 | |||||||||||||||||||||
Average pulpwood price per ton | $ | 9.93 | $ | 8.53 | $ | 8.52 | ||||||||||||||||||
Sawtimber tons sold | 144,300 | 331,300 | 162,900 | |||||||||||||||||||||
Average sawtimber price per ton | $ | 17.94 | $ | 19.82 | $ | 19.51 | ||||||||||||||||||
Total tons sold | 537,200 | 1,141,400 | 1,079,900 | |||||||||||||||||||||
Average price per ton | $ | 11.81 | $ | 10.17 | $ | 11.29 | $ | 12.08 | $ | 11.81 | $ | 10.17 |
For the Year | ||||||||
2009 | 2008 | |||||||
Pulpwood tons sold | 810,100 | 917,000 | ||||||
Average pulpwood price per ton | $ | 8.53 | $ | 8.52 | ||||
Sawtimber tons sold | 331,300 | 162,900 | ||||||
Average sawtimber price per ton | $ | 19.82 | $ | 19.51 | ||||
Total tons sold | 1,141,400 | 1,079,900 | ||||||
Average price per ton | $ | 11.81 | $ | 10.17 |
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Average recreational acres leased | 208,100 | 249,200 | 287,200 | |||||||||
Average price per leased acre | $ | 8.32 | $ | 8.25 | $ | 7.44 |
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Senior | Senior | |||||||
Credit Facility | Credit Facility | |||||||
(In thousands) | (In thousands) | |||||||
Borrowing base availability | $ | 359,335 | $ | 300,000 | ||||
Less: borrowings | (125,000 | ) | (125,000 | ) | ||||
Less: letters of credit | (3,071 | ) | (3,007 | ) | ||||
Less: minimum liquidity covenant | (28,703 | ) | ||||||
Unused borrowing capacity | $ | 202,561 | $ | 171,993 | ||||
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Financial Covenant | Requirement | Year-End | ||
Interest Coverage Ratio(a) | ³ | |||
Revenues/Capital Expenditures Ratio(b) | ³1.00:1.0 | |||
Total Leverage Ratio(c) | £40% | |||
> | $ | |||
Collateral Value to Loan Commitment Ratio | ³ |
41
(a) | Calculated as EBITDA (earnings before interest, taxes, depreciation and amortization), plus non-cash compensation expense, plus other non-cash expenses, divided by interest | |
(b) | Calculated as total gross revenues, plus our pro rata share of the operating revenues from unconsolidated ventures, divided by capital expenditures. Capital expenditures are defined as consolidated development |
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and acquisition expenditures plus our pro rata share of unconsolidated ventures’ development and acquisition expenditures. This covenant is applied at the end of each quarter on a rolling four quarter basis. | ||
(c) | Calculated as total funded debt divided by adjusted asset value. Total funded debt includes indebtedness for borrowed funds, secured liabilities and reimbursement obligations with respect to letters of credit or similar instruments. Adjusted asset value is defined as the sum of unrestricted cash and cash equivalents, timberlands, high value timberlands, raw entitled lands, entitled land under development, minerals business, other real estate owned at book value without regard to any indebtedness and our pro rata share of joint ventures’ book value without regard to any indebtedness. This covenant is applied at the end of each quarter. | |
(d) | Calculated as the amount | |
Calculated as the total collateral value of timberland, high value timberland and our minerals business, divided by total aggregate loan commitment. This covenant is applied at the end of each quarter. |
Payments Due or Expiring by Year | Payments Due or Expiring by Year | |||||||||||||||||||||||||||||||||||||||
Total | 2010 | 2011-12 | 2013-14 | Thereafter | Total | 2011 | 2012-13 | 2014-15 | Thereafter | |||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||
Debt(a) | $ | 216,626 | $ | 175,873 | $ | 40,753 | $ | — | $ | — | $ | 221,589 | $ | 47,506 | $ | 16,916 | $ | 127,231 | $ | 29,936 | ||||||||||||||||||||
Interest payments on debt | 7,849 | 7,489 | 360 | — | — | 51,300 | 10,993 | 20,896 | 16,640 | 2,771 | ||||||||||||||||||||||||||||||
Purchase obligations | 4,673 | 4,673 | — | — | — | 11,392 | 11,392 | — | — | — | ||||||||||||||||||||||||||||||
Operating leases | 20,806 | 2,186 | 4,058 | 3,396 | 11,166 | 22,390 | 2,621 | 4,828 | 3,979 | 10,962 | ||||||||||||||||||||||||||||||
Venture contributions | 2,566 | 2,566 | — | — | — | 1,708 | 1,708 | — | — | — | ||||||||||||||||||||||||||||||
Loan commitments | 10,000 | 10,000 | — | — | — | |||||||||||||||||||||||||||||||||||
Total | $ | 262,520 | $ | 202,787 | $ | 45,171 | $ | 3,396 | $ | 11,166 | $ | 308,379 | $ | 74,220 | $ | 42,640 | $ | 147,850 | 43,669 | |||||||||||||||||||||
(a) | Items included in our balance sheet. In |
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Expiring by Year | Payments Due or Expiring by Year | |||||||||||||||||||||||||||||||||||||||
Total | 2010 | 2011-12 | 2013-14 | Thereafter | Total | 2011 | 2012-13 | 2014-15 | Thereafter | |||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||
Performance bonds | $ | 6,050 | $ | 5,394 | $ | 626 | $ | 30 | $ | — | $ | 5,820 | $ | 5,325 | $ | 475 | $ | 20 | $ | — | ||||||||||||||||||||
Standby letters of credit | 3,071 | 3,071 | — | — | — | 3,007 | 3,000 | 7 | — | — | ||||||||||||||||||||||||||||||
Recourse obligations | 3,595 | 380 | 462 | 1,079 | 1,674 | 3,231 | 751 | 131 | 1,057 | 1,292 | ||||||||||||||||||||||||||||||
Total | $ | 12,716 | $ | 8,845 | $ | 1,088 | $ | 1,109 | $ | 1,674 | $ | 12,058 | $ | 9,076 | $ | 613 | $ | 1,077 | $ | 1,292 | ||||||||||||||||||||
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• | Investment in Real Estate and Cost of Real Estate Sales— In allocating costs to real estate owned and real estate sold, we must estimate current and future real estate values. Our estimates of future real estate values sometimes must extend over periods 15 to 20 years from today and are dependent on numerous assumptions including our intentions and future market and economic conditions. In addition, when we sell real estate from projects that are not finished, we must estimate future development costs through completion. Differences between our estimates and actual results will affect future carrying values and operating results. | |
• | Impairment of Long-Lived Assets— Measuring assets for impairment requires estimating future fair values based on our intentions as to holding periods, future operating cash flows and the residual value of assets under review, primarily undeveloped land. Depending on the asset under review, we use varying methods to determine fair value, such as discounting expected future cash flows, determining resale values by market, or applying a capitalization rate to net operating income using prevailing rates in a given market. Changes in economic conditions, demand for real estate, and the projected net operating income for a specific property will inevitably change our estimates. | |
• | Share-Based Compensation— We | |
• | Income Taxes— In preparing our consolidated financial statements, significant judgment is required to estimate our income taxes. Our estimates are based on our interpretation of federal and state tax laws. We estimate our actual current tax due and assess temporary and permanent differences resulting from differing treatment of items for tax and accounting purposes. The temporary differences result in deferred tax assets and liabilities, which are included in our consolidated balance sheet. If needed, we record a valuation allowance against our deferred tax |
4548
• | Oil and Natural Gas Reserves —The estimation of the oil and natural gas reserve is a significant estimate. On an annual basis, our consulting petroleum engineering firm, with our assistance, prepares estimates of crude oil and natural gas reserves based on available geologic and seismic data, reservoir pressure data, core analysis reports, well logs, analogous reservoir performance history, production data and other available sources of engineering, geological and geophysical information. Oil and natural gas prices are volatile and largely affected by worldwide or domestic production and consumption and are outside our control. |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. |
46
At Year-End | At Year-End | |||||||||||||||
Change in Interest Rates | 2009 | 2008 | 2010 | 2009 | ||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
+2% | $ | (4,100 | ) | $ | (4,581 | ) | $ | (3,728 | ) | $ | (4,100 | ) | ||||
+1% | (2,132 | ) | (2,290 | ) | (1,917 | ) | (2,132 | ) | ||||||||
−1% | 2,132 | 2,290 | 1,917 | 2,132 | ||||||||||||
−2% | 4,264 | 4,581 | 3,833 | 4,264 |
49
Item 8. | Financial Statements and Supplementary Data. |
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. |
Item 9A. | Controls and Procedures. |
47
Item 9B. | Other Information. |
50
Item 10. | Directors, Executive Officers and Corporate Governance. |
Year First | Year First | |||||||||||||||||||
Elected to | Elected to | |||||||||||||||||||
Name | Age | the Board | Principal Occupation | Age | the Board | Principal Occupation | ||||||||||||||
Kenneth M. Jastrow, II | 62 | 2007 | Former Chairman and Chief Executive Officer of Temple-Inland Inc. | 63 | 2007 | Non-Executive Chairman of Forestar Group Inc. | ||||||||||||||
Louis R. Brill | 68 | 2007 | Former Chief Accounting Officer of Temple-Inland Inc. | 69 | 2007 | Former Chief Accounting Officer of Temple-Inland Inc. | ||||||||||||||
Kathleen Brown | 64 | 2007 | Senior Advisor, Goldman, Sachs & Co. | 65 | 2007 | Chairman of Investment Banking for the Midwest Region, Goldman, Sachs & Co. | ||||||||||||||
William G. Currie | 62 | 2007 | Executive Chairman of Universal Forest Products, Inc. | 63 | 2007 | Chairman of Universal Forest Products, Inc. | ||||||||||||||
James M. DeCosmo | 51 | 2007 | President and Chief Executive Officer of Forestar Group Inc. | 52 | 2007 | President and Chief Executive Officer of Forestar Group Inc. | ||||||||||||||
Michael E. Dougherty | 69 | 2008 | Chairman of Dougherty Financial Group LLC | 70 | 2008 | Founder and Chairman of Dougherty Financial Group LLC | ||||||||||||||
James A. Johnson | 66 | 2007 | Vice Chairman of Perseus LLC | 67 | 2007 | Vice Chairman of Perseus LLC | ||||||||||||||
Thomas H. McAuley | 64 | 2007 | Former President of Inland Capital Markets Groups, Inc. | |||||||||||||||||
William C. Powers, Jr. | 63 | 2007 | President of The University of Texas at Austin | 64 | 2007 | President of The University of Texas at Austin | ||||||||||||||
James A. Rubright | 63 | 2007 | Chairman and Chief Executive Officer of Rock-Tenn Company | 64 | 2007 | Chairman and Chief Executive Officer of Rock-Tenn Company | ||||||||||||||
Richard M. Smith | 64 | 2007 | Chairman of Newsweek | 65 | 2007 | President of Pinkerton Foundation |
Item 11. | Executive Compensation. |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
Number of Securities | ||||||||||||
Remaining Available for | ||||||||||||
Number of Securities to be | Weighted-Average | Future Issuance Under | ||||||||||
Issued Upon Exercise of | Exercise Price of | Equity Compensation Plans | ||||||||||
Outstanding Options, | Outstanding Options, | (Excluding Securities | ||||||||||
Plan Category | Warrants and Rights(1)(2) | Warrants and Rights | Reflected in Column (a)) | |||||||||
(a) | (b) | (c) | ||||||||||
Equity compensation plans approved by security holders | 2,371,547 | $ | 21.86 | 2,830,653 | ||||||||
Equity compensation plans not approved by security holders | None | None | None | |||||||||
Total | 2,371,547 | $ | 21.86 | 2,830,653 |
51
(1) | Includes approximately 1,242,000 issuable to personnel of Temple-Inland and the other spin-off entity resulting from the equitable adjustment of Temple-Inland equity awards in connection with our spin-off. | |
(2) | Includes approximately 96,000 equity-settled restricted stock units, which are excluded from the calculation of weighted-average exercise price. |
48
Item 13. | Certain Relationships and Related Transactions, and Director Independence. |
Item 14. | Principal Accountant Fees and Services. |
Item 15. | Exhibits and Financial Statement Schedules. |
Exhibit | Exhibit | Exhibit | ||||||
Number | Number | Exhibit | Number | Exhibit | ||||
2 | .1 | Separation and Distribution Agreement, dated December 11, 2007, among Forestar Real Estate Group Inc. (the “Company”), Guaranty Financial Group Inc., and Temple — Inland Inc. (incorporated by reference to Exhibit 2.1 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | 2 | .1 | Separation and Distribution Agreement, dated December 11, 2007, among Forestar Real Estate Group Inc. (the “Company”), Guaranty Financial Group Inc., and Temple — Inland Inc. (incorporated by reference to Exhibit 2.1 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | |||
3 | .1 | Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | 3 | .1 | Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | |||
3 | .2 | Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | 3 | .2 | Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | |||
3 | .3 | First Amendment to Amended and Restated Bylaws of Forestar Real Estate Group Inc. (incorporated by reference to Exhibit 3.1 of the Company’s Current Report onForm 8-K filed with the Commission on February 19, 2008). | 3 | .3 | First Amendment to Amended and Restated Bylaws of Forestar Real Estate Group Inc. (incorporated by reference to Exhibit 3.1 of the Company’s Current Report onForm 8-K filed with the Commission on February 19, 2008). | |||
3 | .4 | Certificate of Designation of Series A Junior Participating Preferred Stock (incorporated by reference to Exhibit 3.3 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | 3 | .4 | Certificate of Designation of Series A Junior Participating Preferred Stock (incorporated by reference to Exhibit 3.3 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | |||
3 | .5 | Second Amendment to Amended and Restated Bylaws of Forestar Real Estate Group Inc. (incorporated by reference to Exhibit 3.5 of the Company’s Annual Report onForm 10-K filed with the Commission on March 5, 2009) | ||||||
3 | .6 | Certificate of Ownership and Merger, dated November 21, 2008 (incorporated by reference to Exhibit 3.1 of the Company’s Current Report onForm 8-K filed with the Commission on November 24, 2008). | ||||||
3 | .7 | Third Amendment to Amended and Restated Bylaws of Forestar Group Inc. (incorporated by reference to Exhibit 3.2 of the Company’s Current Report onForm 8-K filed with the Commission on November 24, 2008). |
4952
Exhibit | Exhibit | Exhibit | ||||||
Number | Number | Exhibit | Number | Exhibit | ||||
4 | .1 | Specimen Certificate for shares of common stock, par value $1.00 per share, of Forestar Real Estate Group Inc. (incorporated by reference to Exhibit 4.1 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | 3 | .5 | Second Amendment to Amended and Restated Bylaws of Forestar Real Estate Group Inc. (incorporated by reference to Exhibit 3.5 of the Company’s Annual Report onForm 10-K filed with the Commission on March 5, 2009) | |||
4 | .2 | Rights Agreement, dated December 11, 2007, between Forestar Real Estate Group Inc. and Computershare Trust Company, N.A., as Rights Agent (including Form of Rights Certificate) (incorporated by reference to Exhibit 4.1 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | 3 | .6 | Certificate of Ownership and Merger, dated November 21, 2008 (incorporated by reference to Exhibit 3.1 of the Company’s Current Report onForm 8-K filed with the Commission on November 24, 2008). | |||
10 | .1 | Tax Matters Agreement, dated December 11, 2007, among Forestar Real Estate Group Inc., Guaranty Financial Group Inc., and Temple — Inland Inc. (incorporated by reference to Exhibit 10.1 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | 3 | .7 | Third Amendment to Amended and Restated Bylaws of Forestar Group Inc. (incorporated by reference to Exhibit 3.2 of the Company’s Current Report onForm 8-K filed with the Commission on November 24, 2008). | |||
10 | .2 | Transition Services Agreement, dated December 11, 2007, among Forestar Real Estate Group Inc., Guaranty Financial Group Inc., and Temple — Inland Inc. (incorporated by reference to Exhibit 10.2 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | 4 | .1 | Specimen Certificate for shares of common stock, par value $1.00 per share, of Forestar Real Estate Group Inc. (incorporated by reference to Exhibit 4.1 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | |||
10 | .3 | Employee Matters Agreement, dated December 11, 2007, among Forestar Real Estate Group Inc., Guaranty Financial Group Inc., and Temple — Inland Inc. (incorporated by reference to Exhibit 10.3 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | 4 | .2 | Rights Agreement, dated December 11, 2007, between Forestar Real Estate Group Inc. and Computershare Trust Company, N.A., as Rights Agent (including Form of Rights Certificate) (incorporated by reference to Exhibit 4.1 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | |||
10 | .4 | Form of Forestar Real Estate Group Retirement Savings Plan (incorporated by reference to Exhibit 10.4 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | 10 | .1 | Tax Matters Agreement, dated December 11, 2007, among Forestar Real Estate Group Inc., Guaranty Financial Group Inc., and Temple — Inland Inc. (incorporated by reference to Exhibit 10.1 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | |||
10 | .5† | Form of Forestar Real Estate Group Supplemental Employee Retirement Plan (incorporated by reference to Exhibit 10.5 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | 10 | .2 | Transition Services Agreement, dated December 11, 2007, among Forestar Real Estate Group Inc., Guaranty Financial Group Inc., and Temple — Inland Inc. (incorporated by reference to Exhibit 10.2 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | |||
10 | .6† | Form of Forestar Real Estate Group 2007 Stock Incentive Plan (incorporated by reference to Exhibit 10.6 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | 10 | .3 | Employee Matters Agreement, dated December 11, 2007, among Forestar Real Estate Group Inc., Guaranty Financial Group Inc., and Temple — Inland Inc. (incorporated by reference to Exhibit 10.3 of the Company’s Current Report onForm 8-K filed with the Commission on December 11, 2007). | |||
10 | .7† | Form of Forestar Real Estate Group Director’s Fee Deferral Plan (incorporated by reference to Exhibit 10.7 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | 10 | .4 | Form of Forestar Real Estate Group Retirement Savings Plan (incorporated by reference to Exhibit 10.4 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | |||
10 | .8 | Revolving and Term Credit Agreement, dated as of December 14, 2007, among Forestar (USA) Real Estate Group Inc., as borrower, and Forestar Real Estate Group Inc. and certain wholly-owned subsidiaries of the Company, as guarantors, and KeyBank National Association, as lender, swing line lender and agent; General Electric Credit Corporation and AgFirst Farm Credit Bank, as co-syndication agents; KeyBanc Capital Markets, as sole arranger and sole book managers; and the lenders party thereto (incorporated by reference to Exhibit 10.1 of the Company’s Current Report onForm 8-K filed with the Commission on December 17, 2007). | 10 | .5† | Form of Forestar Real Estate Group Supplemental Employee Retirement Plan (incorporated by reference to Exhibit 10.5 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | |||
10 | .9† | Form of Indemnification Agreement to be entered into between the Company and each of its directors (incorporated by reference to Exhibit 10.9 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | 10 | .6† | Form of Forestar Real Estate Group 2007 Stock Incentive Plan (incorporated by reference to Exhibit 10.6 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | |||
10 | .10† | Form of Change in Control Agreement between the Company and its named executive officers (incorporated by reference to Exhibit 10.10 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | 10 | .7† | Form of Forestar Real Estate Group Director’s Fee Deferral Plan (incorporated by reference to Exhibit 10.7 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | |||
10 | .11† | Employment Agreement between the Company and James M. DeCosmo dated August 9, 2007 (incorporated by reference to Exhibit 10.11 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | 10 | .8† | Form of Indemnification Agreement to be entered into between the Company and each of its directors (incorporated by reference to Exhibit 10.9 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | |||
10 | .12† | Form of Nonqualified Stock Option Agreement (incorporated by reference to Exhibit 10.12 of the Company’s Annual Report onForm 10-K filed with the Commission on March 5, 2009). | 10 | .9† | Form of Change in Control Agreement between the Company and its named executive officers (incorporated by reference to Exhibit 10.10 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | |||
10 | .13† | Form of Restricted Stock Agreement (Tier 1) (incorporated by reference to Exhibit 10.13 of the Company’s Annual Report onForm 10-K filed with the Commission on March 5, 2009). | 10 | .10† | Employment Agreement between the Company and James M. DeCosmo dated August 9, 2007 (incorporated by reference to Exhibit 10.11 of Amendment No. 5 to the Company’s Form 10 filed with the Commission on December 10, 2007). | |||
10 | .14† | Form of Restricted Stock Units Agreement for senior executives (incorporated by reference to Exhibit 10.2 of the Company’s Current Report onForm 8-K filed with the Commission on February 12, 2009). | 10 | .11† | Form of Nonqualified Stock Option Agreement (incorporated by reference to Exhibit 10.12 of the Company’s Annual Report onForm 10-K filed with the Commission on March 5, 2009). | |||
10 | .15† | Form of Stock Appreciation Rights Agreement (incorporated by reference to Exhibit 10.1 of the Company’s Current Report onForm 8-K filed with the Commission on February 12, 2009). | 10 | .12† | Form of Restricted Stock Agreement (Tier 1) (incorporated by reference to Exhibit 10.13 of the Company’s Annual Report onForm 10-K filed with the Commission on March 5, 2009). | |||
10 | .13† | Form of Restricted Stock Units Agreement for senior executives (incorporated by reference to Exhibit 10.2 of the Company’s Current Report onForm 8-K filed with the Commission on February 12, 2009). |
5053
Exhibit | Exhibit | Exhibit | ||||||
Number | Number | Exhibit | Number | Exhibit | ||||
10 | .16† | First Amendment to Forestar Group Inc. Director’s Fee Deferral Plan (incorporated by reference to Exhibit 10.16 of the Company’s Annual Report onForm 10-K filed with the Commission on March 5, 2009). | 10 | .14† | Form of Stock Appreciation Rights Agreement (incorporated by reference to Exhibit 10.1 of the Company’s Current Report onForm 8-K filed with the Commission on February 12, 2009). | |||
10 | .17† | First Amendment to the Forestar Real Estate Group Inc. 2007 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Current Report onForm 8-K filed with the Commission on May 13, 2009). | 10 | .15† | First Amendment to Forestar Group Inc. Director’s Fee Deferral Plan (incorporated by reference to Exhibit 10.16 of the Company’s Annual Report onForm 10-K filed with the Commission on March 5, 2009). | |||
10 | .18 | First Amendment to the Revolving and Term Credit Agreement and Other Loan Documents, dated as of March 12, 2008, by and among the Company, Forestar (USA) Real Estate Group Inc. and its wholly-owned subsidiaries signatory thereto, Key Bank National Association, as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 10.4 of the Company’s Quarterly Report onForm 10-Q filed with the Commission on August 6, 2009). | 10 | .16† | First Amendment to the Forestar Real Estate Group Inc. 2007 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Current Report onForm 8-K filed with the Commission on May 13, 2009). | |||
10 | .19 | Second Amendment to the Revolving and Term Credit Agreement, dated as of July 16, 2009, by and among the Company, Forestar (USA) Real Estate Group Inc. and its wholly-owned subsidiaries signatory thereto, KeyBank National Association, as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 10.1 of the Company’s Current Report onForm 8-K filed with the Commission on July 17, 2009). | 10 | .17 | Purchase and Sale Agreement, dated as of May 2, 2009, by and between Forestar (USA) Real Estate Group Inc. and Hancock Natural Resource Group, Inc. (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report onForm 10-Q filed with the Commission on August 6, 2009). | |||
10 | .20 | Purchase and Sale Agreement, dated as of May 2, 2009, by and between Forestar (USA) Real Estate Group Inc. and Hancock Natural Resource Group, Inc. (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report onForm 10-Q filed with the Commission on August 6, 2009). | 10 | .18 | Purchase and Sale Agreement, dated as of June 26, 2009, by and between Forestar (USA) Real Estate Group Inc. and Holland M. Ware (incorporated by reference to Exhibit 10.3 of the Company’s Quarterly Report onForm 10-Q filed with the Commission on August 6, 2009). | |||
10 | .21 | Purchase and Sale Agreement, dated as of June 26, 2009, by and between Forestar (USA) Real Estate Group Inc. and Holland M. Ware (incorporated by reference to Exhibit 10.3 of the Company’s Quarterly Report onForm 10-Q filed with the Commission on August 6, 2009). | 10 | .19† | Second Amendment to the Forestar Group Inc. 2007 Stock Incentive Plan (incorporated by reference to Exhibit 10.22 to the Company’s Annual Report onForm 10-K filed with the Commission on March 3, 2010). | |||
10 | .22†* | Second Amendment to the Forestar Group Inc. 2007 Stock Incentive Plan. | 10 | .20 | Amended and Restated Revolving and Term Credit Agreement, dated as of August 6, 2010, by and among the Company, Forestar (USA) Real Estate Group Inc. and its wholly-owned subsidiaries signatory thereto, KeyBank National Association, as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Commission on August 6, 2010). | |||
21 | .1* | List of Subsidiaries of the Company. | 10 | .21 | Supplement dated February 23, 2011 to the Amended and Restated Revolving and Term Credit Agreement, by and between Forestar (USA) Real Estate Group Inc., KeyBank National Association, and JP Morgan Chase Bank, National Association (incorporated by reference to Exhibit 10.1 of the Company’s Current Report onForm 8-K filed with the Commission on February 24, 2011). | |||
23 | .1* | Consent of Ernst & Young LLP. | 10 | .22†* | Severance Agreement dated October 12, 2009, by and between the Company and Phillip J. Weber. | |||
23 | .2* | Consent of Netherland, Sewell & Associates, Inc. | 10 | .23†* | First Amendment to Employment Agreement, dated as of November 10, 2010, by and between the Company and James M. DeCosmo. | |||
31 | .1* | Certification of Chief Executive Officer pursuant to Exchange Actrule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | 10 | .24† | Form of Market-Leveraged Stock Unit Award Agreement (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the Commission on February 9, 2011). | |||
31 | .2* | Certification of Chief Financial Officer pursuant to Exchange Actrule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | 21 | .1* | List of Subsidiaries of the Company. | |||
32 | .1* | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | 23 | .1* | Consent of Ernst & Young LLP. | |||
32 | .2* | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | 23 | .2* | Consent of Netherland, Sewell & Associates, Inc. | |||
99 | .1* | Reserve audit report of Netherland, Sewell & Associates, Inc., dated February 25, 2010. | 31 | .1* | Certification of Chief Executive Officer pursuant to Exchange Actrule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
31 | .2* | Certification of Chief Financial Officer pursuant to Exchange Actrule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||
32 | .1* | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||
32 | .2* | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||
99 | .1* | Reserve report of Netherland, Sewell & Associates, Inc., dated February 25, 2011. |
* | Filed herewith. | |
† | Management contract or compensatory plan or arrangement. |
5154
By: | /s/ James M. DeCosmo |
Signature | Capacity | Date | ||||
/s/ James M. DeCosmo James M. DeCosmo | Director, President and Chief Executive Officer (Principal Executive Officer) | March | ||||
/s/ Christopher L. Nines Christopher L. Nines | Chief Financial Officer (Principal Financial Officer) | March | ||||
/s/ Charles D. Jehl Charles D. Jehl | Chief Accounting Officer (Principal Accounting Officer) | March | ||||
/s/ Kenneth M. Jastrow, II Kenneth M. Jastrow, II | Non-Executive Chairman of the Board | March | ||||
/s/ Louis R. Brill Louis R. Brill | Director | March | ||||
/s/ Kathleen Brown Kathleen Brown | Director | March | ||||
/s/ William G. Currie William G. Currie | Director | March | ||||
/s/ Michael E. Dougherty Michael E. Dougherty | Director | March | ||||
/s/ James A. Johnson James A. Johnson | Director | March | ||||
/s/ William C. Powers, Jr. William C. Powers, Jr. | Director | March | ||||
/s/ James A. Rubright James A. Rubright | Director | March | ||||
/s/ Richard M. Smith Richard M. Smith | Director | March |
5255
Page | ||||
F-2 | ||||
F-3 | ||||
F-4 | ||||
Audited Financial Statements | ||||
F-5 | ||||
F-6 | ||||
F-7 | ||||
F-8 | ||||
F-9 | ||||
Financial Statement Schedule | ||||
S-1 |
F-1
F-2
F-3
F-4
At Year-End | At Year-End | |||||||||||||||
2009 | 2008 | 2010 | 2009 | |||||||||||||
(In thousands, except share data) | (In thousands, except share data) | |||||||||||||||
ASSETS | ASSETS | |||||||||||||||
Cash and cash equivalents | $ | 21,051 | $ | 8,127 | $ | 5,366 | $ | 21,051 | ||||||||
Real estate | 542,812 | 610,586 | 562,192 | 542,812 | ||||||||||||
Assets held for sale | 31,226 | — | 21,122 | 31,226 | ||||||||||||
Investment in unconsolidated ventures | 109,597 | 117,554 | 101,166 | 109,597 | ||||||||||||
Timber | 19,845 | 50,989 | 17,959 | 19,845 | ||||||||||||
Receivables, net of allowance for bad debts of $144 in 2009 and $226 in 2008 | 1,841 | 4,262 | ||||||||||||||
Prepaid expense | 2,587 | 1,295 | ||||||||||||||
Income taxes receivable | — | 1,130 | ||||||||||||||
Property and equipment, net of accumulated depreciation of $3,629 in 2009 and $2,994 in 2008 | 5,234 | 6,211 | ||||||||||||||
Receivables, net of allowance for bad debts of $144 in 2010 and 2009 | 2,875 | 1,841 | ||||||||||||||
Prepaid expenses | 2,038 | 2,587 | ||||||||||||||
Property and equipment, net of accumulated depreciation of $4,405 in 2010 and $3,629 in 2009 | 5,895 | 5,234 | ||||||||||||||
Deferred tax asset | 40,751 | 17,184 | 47,141 | 40,751 | ||||||||||||
Goodwill and other intangible assets | 6,527 | — | ||||||||||||||
Other assets | 9,790 | 17,238 | 17,043 | 9,790 | ||||||||||||
TOTAL ASSETS | $ | 784,734 | $ | 834,576 | $ | 789,324 | $ | 784,734 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
Accounts payable | $ | 4,573 | $ | 7,438 | $ | 4,214 | $ | 4,573 | ||||||||
Accrued employee compensation and benefits | 4,025 | 3,389 | 994 | 4,025 | ||||||||||||
Accrued property taxes | 4,302 | 6,808 | 3,662 | 4,302 | ||||||||||||
Accrued interest | 546 | 1,199 | 1,061 | 871 | ||||||||||||
Income taxes payable | 2,809 | — | 3,293 | 2,809 | ||||||||||||
Other accrued expenses | 8,269 | 11,448 | 8,168 | 8,269 | ||||||||||||
Other liabilities | 25,249 | 12,940 | 32,064 | 24,924 | ||||||||||||
Debt | 216,626 | 337,402 | 221,589 | 216,626 | ||||||||||||
TOTAL LIABILITIES | 266,399 | 380,624 | 275,045 | 266,399 | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||
EQUITY | ||||||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||
Forestar Group Inc. shareholders’ equity: | ||||||||||||||||
Preferred stock, par value $0.01 per share, 25,000,000 authorized shares, none issued | — | — | — | — | ||||||||||||
Common stock, par value $1.00 per share, 200,000,000 authorized shares, 36,255,336 issued at December 31, 2009 and 35,839,390 issued at December 31, 2008 | 36,255 | 35,839 | ||||||||||||||
Common stock, par value $1.00 per share, 200,000,000 authorized shares, 36,667,210 issued at December 31, 2010 and 36,255,336 issued at December 31, 2009 | 36,667 | 36,255 | ||||||||||||||
Additional paid-in capital | 384,795 | 377,810 | 391,352 | 384,795 | ||||||||||||
Retained earnings | 95,876 | 36,769 | 101,001 | 95,876 | ||||||||||||
Accumulated other comprehensive loss | (256 | ) | (1,260 | ) | — | (256 | ) | |||||||||
Treasury stock, at cost, 209,544 shares at December 31, 2009 and 90,819 at December 31, 2008 | (4,214 | ) | (1,866 | ) | ||||||||||||
Treasury stock, at cost, 1,216,647 shares at December 31, 2010 and 209,544 shares at December 31, 2009 | (19,456 | ) | (4,214 | ) | ||||||||||||
Total Forestar Group Inc. shareholders’ equity | 512,456 | 447,292 | 509,564 | 512,456 | ||||||||||||
Noncontrolling interests | 5,879 | 6,660 | 4,715 | 5,879 | ||||||||||||
TOTAL EQUITY | 518,335 | 453,952 | ||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 514,279 | 518,335 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 784,734 | $ | 834,576 | ||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 789,324 | $ | 784,734 | ||||||||||||
F-5
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands, except per share amounts) | (In thousands, except per share amounts) | |||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||
Real estate sales | $ | 75,050 | $ | 73,555 | $ | 117,890 | $ | 45,003 | $ | 75,050 | $ | 73,555 | ||||||||||||
Commercial operating properties and other | 19,386 | 25,304 | 24,839 | |||||||||||||||||||||
Income producing properties and other | 23,266 | 19,386 | 25,304 | |||||||||||||||||||||
Real estate | 94,436 | 98,859 | 142,729 | 68,269 | 94,436 | 98,859 | ||||||||||||||||||
Mineral resources | 36,256 | 47,671 | 20,818 | 24,790 | 36,256 | 47,671 | ||||||||||||||||||
Fiber resources and other | 15,559 | 13,192 | 14,439 | 8,301 | 15,559 | 13,192 | ||||||||||||||||||
146,251 | 159,722 | 177,986 | 101,360 | 146,251 | 159,722 | |||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Cost of real estate sales | (30,463 | ) | (38,395 | ) | (58,046 | ) | (27,488 | ) | (30,463 | ) | (38,395 | ) | ||||||||||||
Cost of commercial operating properties and other | (15,844 | ) | (16,736 | ) | (17,936 | ) | ||||||||||||||||||
Cost of income producing properties and other | (18,737 | ) | (15,844 | ) | (16,736 | ) | ||||||||||||||||||
Cost of mineral resources | (922 | ) | (1,714 | ) | — | (1,097 | ) | (922 | ) | (1,714 | ) | |||||||||||||
Cost of fiber resources | (3,396 | ) | (3,357 | ) | (3,672 | ) | (1,640 | ) | (3,396 | ) | (3,357 | ) | ||||||||||||
Other operating | (44,685 | ) | (41,486 | ) | (30,441 | ) | (39,539 | ) | (44,685 | ) | (41,486 | ) | ||||||||||||
General and administrative | (29,926 | ) | (22,228 | ) | (18,624 | ) | (22,581 | ) | (29,926 | ) | (22,228 | ) | ||||||||||||
Gain on sale of assets | 104,047 | — | — | 28,607 | 104,047 | — | ||||||||||||||||||
(21,189 | ) | (123,916 | ) | (128,719 | ) | (82,475 | ) | (21,189 | ) | (123,916 | ) | |||||||||||||
OPERATING INCOME | 125,062 | 35,806 | 49,267 | 18,885 | 125,062 | 35,806 | ||||||||||||||||||
Equity in (loss) earnings of unconsolidated ventures | (7,771 | ) | 4,642 | 3,732 | ||||||||||||||||||||
Equity in earnings (loss) of unconsolidated ventures | 4,701 | (7,771 | ) | 4,642 | ||||||||||||||||||||
Interest expense | (20,459 | ) | (21,283 | ) | (9,229 | ) | (16,446 | ) | (20,459 | ) | (21,283 | ) | ||||||||||||
Other non-operating income | 375 | 279 | 705 | 1,164 | 375 | 279 | ||||||||||||||||||
INCOME BEFORE TAXES | 97,207 | 19,444 | 44,475 | 8,304 | 97,207 | 19,444 | ||||||||||||||||||
Income tax expense | (35,633 | ) | (5,235 | ) | (13,909 | ) | (2,470 | ) | (35,633 | ) | (5,235 | ) | ||||||||||||
CONSOLIDATED NET INCOME | 61,574 | 14,209 | 30,566 | 5,834 | 61,574 | 14,209 | ||||||||||||||||||
Less: Net income attributable to noncontrolling interests | (2,467 | ) | (2,235 | ) | (5,771 | ) | (709 | ) | (2,467 | ) | (2,235 | ) | ||||||||||||
NET INCOME ATTRIBUTABLE TO FORESTAR GROUP INC. | $ | 59,107 | $ | 11,974 | $ | 24,795 | $ | 5,125 | $ | 59,107 | $ | 11,974 | ||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||||||||||||||||||||||
Basic | 35,805 | 35,455 | 35,380 | 35,815 | 35,805 | 35,455 | ||||||||||||||||||
Diluted | 36,102 | 35,892 | 35,380 | 36,377 | 36,102 | 35,892 | ||||||||||||||||||
NET INCOME PER COMMON SHARE | ||||||||||||||||||||||||
Basic | $ | 1.65 | $ | 0.34 | $ | 0.70 | $ | 0.14 | $ | 1.65 | $ | 0.34 | ||||||||||||
Diluted | $ | 1.64 | $ | 0.33 | $ | 0.70 | $ | 0.14 | $ | 1.64 | $ | 0.33 |
F-6
Forestar Group Inc. Shareholders | Forestar Group Inc. Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated | Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional | Other | Additional | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in | Treasury Stock | Comprehensive | Retained | Parent’s | Noncontrolling | Common Stock | Paid-in | Treasury Stock | Comprehensive | Retained | Noncontrolling | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Shares | Amount | Capital | Shares | Amount | Income | Earnings | Equity | Interest | Total | Shares | Amount | Capital | Shares | Amount | Income | Earnings | Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except share data) | (In thousands, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 30, 2006 | $ | 425,798 | — | $ | — | $ | — | — | $ | — | $ | — | $ | — | $ | 418,052 | $ | 7,746 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 29, 2007 | $ | 441,830 | 35,380,385 | $ | 35,380 | $ | 373,026 | (53 | ) | $ | — | $ | — | $ | 24,795 | $ | 8,629 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 30,566 | — | — | — | — | — | — | 24,795 | — | 5,771 | 14,209 | — | — | — | — | — | — | 11,974 | 2,235 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | (11,948 | ) | — | — | — | — | — | — | — | — | (11,948 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interest | 7,060 | — | — | — | — | — | — | — | — | 7,060 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net transactions with parent company | (9,646 | ) | — | — | — | — | — | — | — | (9,646 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Spin-off from Temple-Inland | — | 35,380,385 | 35,380 | 373,026 | (53 | ) | — | — | — | (408,406 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 29, 2007 | $ | 441,830 | 35,380,385 | $ | 35,380 | $ | 373,026 | (53 | ) | $ | — | $ | — | $ | 24,795 | $ | — | $ | 8,629 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 14,209 | — | — | — | — | — | — | 11,974 | — | 2,235 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on interest rate swap, net of taxes of $679 | (1,260 | ) | — | — | — | — | — | (1,260 | ) | — | — | — | (1,260 | ) | — | — | — | — | — | (1,260 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 12,949 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | (4,441 | ) | — | — | — | — | — | — | — | (4,441 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interest | 237 | — | — | — | — | — | — | — | 237 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | — | 182,976 | 183 | (183 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of restricted stock | — | 214,426 | 214 | (214 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances from exercises of stock options | 897 | 61,603 | 62 | 835 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for payroll taxes | (1,194 | ) | — | — | — | (52,482 | ) | (1,194 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares exchanged for options exercised | (646 | ) | — | — | — | (27,394 | ) | (646 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeitures of restricted stock | (19 | ) | — | — | 7 | (10,890 | ) | (26 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 4,254 | — | — | 4,254 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit from exercise of restricted stock units and stock options and vested restricted stock | 85 | — | — | 85 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2008 | $ | 453,952 | 35,839,390 | $ | 35,839 | $ | 377,810 | (90,819 | ) | $ | (1,866 | ) | $ | (1,260 | ) | $ | 36,769 | $ | 6,660 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 61,574 | — | — | — | — | — | — | 59,107 | 2,467 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on interest rate swap, net of taxes of ($542) | 1,004 | — | — | — | — | — | 1,004 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 12,949 | $ | 62,578 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | (4,441 | ) | — | — | — | — | — | — | — | — | (4,441 | ) | (3,501 | ) | — | — | — | — | — | — | — | (3,501 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interest | 237 | — | — | — | — | — | — | — | — | 237 | 253 | — | — | — | — | — | — | — | 253 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | — | 182,976 | 183 | (183 | ) | — | — | — | — | — | — | — | 4,870 | 5 | (5 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of restricted stock | — | 214,426 | 214 | (214 | ) | — | — | — | — | — | — | — | 125,275 | 125 | (125 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances from exercises of stock options | 897 | 61,603 | 62 | 835 | — | — | — | — | — | — | 3,547 | 285,801 | 286 | 3,261 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for payroll taxes | (1,194 | ) | — | — | — | (52,482 | ) | (1,194 | ) | — | — | — | — | (467 | ) | — | — | — | (24,170 | ) | (467 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares exchanged for options exercised | (646 | ) | — | — | — | (27,394 | ) | (646 | ) | — | — | — | — | (1,880 | ) | — | — | — | (93,255 | ) | (1,880 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeitures of restricted stock | (19 | ) | — | — | 7 | (10,890 | ) | (26 | ) | — | — | — | — | — | — | — | 1 | (1,300 | ) | (1 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 4,254 | — | — | 4,254 | — | — | — | — | — | — | 3,824 | — | — | 3,824 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit from exercise of restricted stock units and stock options and vested restricted stock | 85 | — | — | 85 | — | — | — | — | — | — | 29 | — | — | 29 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2008 | $ | 453,952 | 35,839,390 | $ | 35,839 | $ | 377,810 | (90,819 | ) | $ | (1,866 | ) | $ | (1,260 | ) | $ | 36,769 | $ | — | $ | 6,660 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2009 | $ | 518,335 | 36,255,336 | $ | 36,255 | $ | 384,795 | (209,544 | ) | $ | (4,214 | ) | $ | (256 | ) | $ | 95,876 | $ | 5,879 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 61,574 | — | — | — | — | — | — | 59,107 | — | 2,467 | 5,834 | — | — | — | — | — | — | 5,125 | 709 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on interest rate swap, net of taxes of ($542) | 1,004 | — | — | — | — | — | 1,004 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on interest rate swap, net of taxes of ($137) | 256 | — | — | — | — | — | 256 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | $ | 62,578 | $ | 6,090 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | (3,501 | ) | — | — | — | — | — | — | — | — | (3,501 | ) | (2,690 | ) | — | — | — | — | — | — | — | (2,690 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interest | 253 | — | — | — | — | — | — | — | — | 253 | 817 | — | — | — | — | — | — | — | 817 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of common stock | — | 4,870 | 5 | (5 | ) | — | — | — | — | — | — | — | 2,585 | 3 | (3 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances of restricted stock | — | 125,275 | 125 | (125 | ) | — | — | — | — | — | — | — | 308,697 | 309 | (309 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances from exercises of stock options | 3,547 | 285,801 | 286 | 3,261 | — | — | — | — | — | — | 1,199 | 91,078 | 91 | 1,108 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances from restricted stock units | 165 | 9,514 | 9 | 156 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld for payroll taxes | (467 | ) | — | — | — | (24,170 | ) | (467 | ) | — | — | — | — | (7 | ) | — | — | — | (389 | ) | (7 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares exchanged for options exercised | (1,880 | ) | — | — | — | (93,255 | ) | (1,880 | ) | — | — | — | — | (54 | ) | — | — | — | (2,858 | ) | (54 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased | (15,178 | ) | — | — | — | (1,000,987 | ) | (15,178 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeitures of restricted stock | — | — | — | 1 | (1,300 | ) | (1 | ) | — | — | — | — | — | — | — | 3 | (2,869 | ) | (3 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 3,824 | — | — | 3,824 | — | — | — | — | — | — | 5,572 | — | — | 5,572 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit from exercise of restricted stock units and stock options and vested restricted stock | 29 | — | — | 29 | — | — | — | — | — | — | 30 | — | — | 30 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2010 | $ | 514,279 | 36,667,210 | $ | 36,667 | $ | 391,352 | (1,216,647 | ) | $ | (19,456 | ) | $ | — | $ | 101,001 | $ | 4,715 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2009 | $ | 518,335 | 36,255,336 | $ | 36,255 | $ | 384,795 | (209,544 | ) | $ | (4,214 | ) | $ | (256 | ) | $ | 95,876 | $ | — | $ | 5,879 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
F-7
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||||||
Consolidated net income | $ | 61,574 | $ | 14,209 | $ | 30,566 | $ | 5,834 | $ | 61,574 | $ | 14,209 | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Depreciation and amortization | 9,786 | 7,673 | 2,915 | 9,014 | 9,786 | 7,673 | ||||||||||||||||||
Deferred income taxes | (22,734 | ) | (11,399 | ) | (19,544 | ) | (6,527 | ) | (22,734 | ) | (11,399 | ) | ||||||||||||
Tax benefits not recognized for book purposes | 6,162 | — | — | 133 | 6,162 | — | ||||||||||||||||||
Equity in loss (earnings) of unconsolidated ventures | 7,771 | (4,642 | ) | (3,732 | ) | |||||||||||||||||||
Equity in (earnings) loss of unconsolidated ventures | (4,701 | ) | 7,771 | (4,642 | ) | |||||||||||||||||||
Distributions of earnings of unconsolidated ventures | 259 | 1,053 | 2,863 | 1,609 | 259 | 1,053 | ||||||||||||||||||
Distributions of earnings to noncontrolling interests | (3,325 | ) | (4,427 | ) | (11,042 | ) | (1,881 | ) | (3,325 | ) | (4,427 | ) | ||||||||||||
Share-based compensation | 11,998 | 4,516 | 1,397 | 11,596 | 11,998 | 4,516 | ||||||||||||||||||
Non-cash real estate cost of sales | 25,858 | 34,766 | 46,975 | 18,261 | 25,858 | 34,766 | ||||||||||||||||||
Non-cash cost of assets sold | 49,804 | — | — | 9,503 | 49,804 | — | ||||||||||||||||||
Proceeds reinvested through qualified intermediary under IRC Section 1031 | (23,045 | ) | — | — | ||||||||||||||||||||
Real estate development and acquisition expenditures | (33,787 | ) | (99,189 | ) | (140,013 | ) | (16,660 | ) | (33,787 | ) | (99,189 | ) | ||||||||||||
Reimbursements from utility and improvement districts | 24,945 | 674 | 10,628 | 4,752 | 24,945 | 674 | ||||||||||||||||||
Other changes in real estate | 384 | (522 | ) | (1,364 | ) | 179 | 384 | (522 | ) | |||||||||||||||
Gain on termination of timber lease | (195 | ) | (1,627 | ) | (2,243 | ) | (671 | ) | (195 | ) | (1,627 | ) | ||||||||||||
Cost of timber cut | 3,104 | 2,968 | 4,060 | 1,544 | 3,104 | 2,968 | ||||||||||||||||||
Deferred income | (2,673 | ) | 681 | — | 1,307 | (2,673 | ) | 681 | ||||||||||||||||
Asset impairments | 7,931 | 3,000 | 6,518 | 9,042 | 7,931 | 3,000 | ||||||||||||||||||
Loss on sale of assets held for sale | 277 | — | — | |||||||||||||||||||||
Other | 528 | (538 | ) | (65 | ) | (16 | ) | 528 | (538 | ) | ||||||||||||||
Changes in: | ||||||||||||||||||||||||
Receivables | (747 | ) | 22 | 659 | 104 | (747 | ) | 22 | ||||||||||||||||
Proceeds due from qualified intermediary under IRC Section 1031 | (1,347 | ) | �� | — | ||||||||||||||||||||
Prepaid expenses and other | 1,259 | 2,188 | (66 | ) | 1,154 | 1,259 | 2,188 | |||||||||||||||||
Accounts payable and other accrued liabilities | (8,490 | ) | (165 | ) | 7,507 | (6,394 | ) | (8,490 | ) | (165 | ) | |||||||||||||
Income taxes payable (receivable) | 2,708 | (1,130 | ) | — | ||||||||||||||||||||
Income taxes | 484 | 2,708 | (1,130 | ) | ||||||||||||||||||||
Net cash provided by (used for) operating activities | 142,120 | (51,889 | ) | (63,981 | ) | 13,551 | 142,120 | (51,889 | ) | |||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||||||
Property, equipment, software and reforestation | (7,295 | ) | (5,197 | ) | (3,198 | ) | (2,702 | ) | (7,295 | ) | (5,197 | ) | ||||||||||||
Investment in unconsolidated ventures | (2,875 | ) | (17,845 | ) | (14,492 | ) | (3,291 | ) | (2,875 | ) | (17,845 | ) | ||||||||||||
Return of investment in unconsolidated ventures | 3,797 | 6,168 | 3,239 | 14,849 | 3,797 | 6,168 | ||||||||||||||||||
Notes receivable sold or collected | — | — | 491 | |||||||||||||||||||||
Business acquisitions, net of cash acquired | (38,055 | ) | — | — | ||||||||||||||||||||
Proceeds from sale of property and equipment | — | 52 | 166 | — | — | 52 | ||||||||||||||||||
Proceeds from sale of assets held for sale | 2,602 | — | — | |||||||||||||||||||||
Proceeds from termination of timber lease | — | 155 | 2,966 | — | — | 155 | ||||||||||||||||||
Net cash (used for) investing activities | (6,373 | ) | (16,667 | ) | (10,828 | ) | (26,597 | ) | (6,373 | ) | (16,667 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||
Payments of debt | (164,612 | ) | (80,165 | ) | (22,534 | ) | (63,420 | ) | (164,612 | ) | (80,165 | ) | ||||||||||||
Additions to debt | 43,836 | 151,552 | 226,446 | 81,590 | 43,836 | 151,552 | ||||||||||||||||||
Note payable to Temple-Inland, net | — | — | (93,063 | ) | ||||||||||||||||||||
Dividends and other transfers to Temple-Inland | — | — | (29,101 | ) | ||||||||||||||||||||
Deferred financing fees | (3,209 | ) | (1,619 | ) | (10,010 | ) | (6,304 | ) | (3,209 | ) | (1,619 | ) | ||||||||||||
Return of investment to noncontrolling interest | (176 | ) | (14 | ) | (906 | ) | (809 | ) | (176 | ) | (14 | ) | ||||||||||||
Exercise of stock options | 3,547 | 897 | — | 1,199 | 3,547 | 897 | ||||||||||||||||||
Repurchases of common stock | (15,178 | ) | — | — | ||||||||||||||||||||
Payroll taxes on restricted stock and stock options | (2,347 | ) | (1,858 | ) | — | (61 | ) | (2,347 | ) | (1,858 | ) | |||||||||||||
Tax benefit from share-based compensation | 29 | 85 | — | 30 | 29 | 85 | ||||||||||||||||||
Other | 109 | 285 | 1,147 | 314 | 109 | 285 | ||||||||||||||||||
Net cash (used for) provided by financing activities | (122,823 | ) | 69,163 | 71,979 | (2,639 | ) | (122,823 | ) | 69,163 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 12,924 | 607 | (2,830 | ) | ||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (15,685 | ) | 12,924 | 607 | ||||||||||||||||||||
Cash and cash equivalents at beginning of year | 8,127 | 7,520 | 10,350 | 21,051 | 8,127 | 7,520 | ||||||||||||||||||
Cash and cash equivalents at year-end | $ | 21,051 | $ | 8,127 | $ | 7,520 | $ | 5,366 | $ | 21,051 | $ | 8,127 | ||||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||||||||||||
Cash paid during the year for: | �� | |||||||||||||||||||||||
Interest | $ | 16,951 | $ | 21,006 | $ | 12,030 | $ | 11,889 | $ | 16,951 | $ | 21,006 | ||||||||||||
Income taxes | $ | 48,299 | $ | 18,414 | $ | 33,428 | $ | 8,423 | $ | 48,299 | $ | 18,414 | ||||||||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION: | ||||||||||||||||||||||||
Capitalized interest | $ | 1,021 | $ | 3,628 | $ | 3,351 | $ | 75 | $ | 1,021 | $ | 3,628 | ||||||||||||
Lessor construction allowances | $ | — | $ | 1,296 | $ | — | $ | — | $ | — | $ | 1,296 | ||||||||||||
SUPPLEMENTAL DISCLOSURE OF BUSINESS ACQUISITIONS INFORMATION: | ||||||||||||||||||||||||
Proceeds reinvested through qualified intermediary under IRC Section 1031 | $ | 23,045 | $ | — | $ | — | ||||||||||||||||||
Proceeds provided by financing activities | 38,055 | — | — | |||||||||||||||||||||
Total business acquisitions | $ | 61,100 | $ | — | $ | — | ||||||||||||||||||
F-8
Note 1 — |
Summary of Significant Accounting Policies |
F-9
F-9
F-10
F-10
F-11
Carrying | ||||||||||||||||||||
Value | Carrying | |||||||||||||||||||
Estimated | Year-End | Estimated | Value Year-End | |||||||||||||||||
Useful Lives | 2009 | Useful Lives | 2010 | 2009 | ||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||
Buildings and building improvements | 10 to 40 years | $ | 4,402 | 10 to 40 years | $ | 4,417 | $ | 4,402 | ||||||||||||
Property and equipment | 2 to 10 years | 4,461 | 2 to 10 years | 5,883 | 4,461 | |||||||||||||||
8,863 | 10,300 | 8,863 | ||||||||||||||||||
Less: accumulated depreciation | (3,629 | ) | (4,405 | ) | (3,629 | ) | ||||||||||||||
$ | 5,234 | $ | 5,895 | $ | 5,234 | |||||||||||||||
F-11
F-12
F-12
F-13
Note | New and Pending Accounting Pronouncements |
Note 3 — | Strategic Initiatives and Assets Held for Sale |
F-14F-13
Note 4 — | Business Acquisitions |
F-14
Note 5 — | Real Estate |
At Year-End | At Year-End | |||||||||||||||
2009 | 2008 | 2010 | 2009 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Entitled, developed and under development projects | $ | 427,047 | $ | 445,394 | $ | 403,059 | $ | 424,447 | ||||||||
Undeveloped land | 91,011 | 143,749 | 86,608 | 91,011 | ||||||||||||
Commercial operating properties | 49,171 | 43,987 | ||||||||||||||
Income producing properties | 95,963 | 51,771 | ||||||||||||||
567,229 | 633,130 | 585,630 | 567,229 | |||||||||||||
Accumulated depreciation | (24,417 | ) | (22,544 | ) | (23,438 | ) | (24,417 | ) | ||||||||
$ | 542,812 | $ | 610,586 | $ | 562,192 | $ | 542,812 | |||||||||
Note 6 — | Timber |
F-15
Note 7 — | Investment in Unconsolidated Ventures |
• | CL Realty, L.L.C. was formed in 2002 for the purpose of developing residential and mixed-use communities in Texas and across the southeastern United States. At year-end | |
• | Temco Associates, LLC was formed in 1991 for the purpose of acquiring and developing residential real estate sites in Georgia. At year-end | |
• | Palisades West LLC was formed in 2006 for the purpose of constructing a commercial office park in Austin, Texas. The project includes two office buildings totaling approximately 375,000 square feet and an accompanying parking garage. |
Year-End 2009 | Year-End 2008 | Year-End 2010 | Year-End 2009 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Palisades | Other | Palisades | Other | CL | Palisades | Other | CL | Palisades | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CL Realty | Temco | West | Ventures | Total | CL Realty | Temco | West | Ventures | Total | Realty | Temco | West | Ventures | Total | Realty | Temco | West | Ventures | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | $ | 113,169 | $ | 60,402 | $ | 122,566 | $ | 89,507 | $ | 385,644 | $ | 124,418 | $ | 60,791 | $ | 120,953 | $ | 94,093 | $ | 400,255 | $ | 85,436 | $ | 60,454 | $ | 124,696 | $ | 69,612 | $ | 340,198 | $ | 113,169 | $ | 60,402 | $ | 122,566 | $ | 89,507 | $ | 385,644 | ||||||||||||||||||||||||||||||||||||||||
Total assets | 114,598 | 60,751 | 125,396 | 96,711 | 397,456 | 126,728 | 61,832 | 123,290 | 102,928 | 414,778 | 86,657 | 60,609 | 129,378 | 78,060 | 354,704 | 114,598 | 60,751 | 125,396 | 96,711 | 397,456 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings, principally non-recourse(a) | 3,568 | 3,061 | — | 77,113 | 83,742 | 4,901 | 3,198 | — | 75,638 | 83,737 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings(a) | 2,664 | 2,929 | — | 74,605 | 80,198 | 3,568 | 3,061 | — | 77,113 | 83,742 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 5,414 | 3,268 | 51,158 | (b) | 88,273 | 148,113 | 8,684 | 3,570 | 50,548 | (b) | 89,579 | 152,381 | 4,124 | 3,133 | 48,612 | (b) | 87,145 | 143,014 | 5,414 | 3,268 | 51,158 | (b) | 88,273 | 148,113 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | 109,184 | 57,483 | 74,238 | 8,438 | 249,343 | 118,044 | 58,262 | 72,742 | 13,349 | 262,397 | 82,533 | 57,476 | 80,766 | (9,085 | ) | 211,690 | 109,184 | 57,483 | 74,238 | 8,438 | 249,343 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our investment in real estate ventures: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our share of their equity(c) | 54,592 | 28,742 | 18,559 | 15,673 | 117,566 | 59,022 | 29,131 | 18,779 | 18,295 | 125,227 | 41,267 | 28,738 | 20,191 | 14,075 | 104,271 | 54,592 | 28,742 | 18,559 | 15,673 | 117,566 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized deferred gain(d) | (7,059 | ) | — | — | (910 | ) | (7,969 | ) | (7,059 | ) | — | — | (614 | ) | (7,673 | ) | (2,190 | ) | — | — | (915 | ) | (3,105 | ) | (7,059 | ) | — | — | (910 | ) | (7,969 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment in real estate ventures | $ | 47,533 | $ | 28,742 | $ | 18,559 | $ | 14,763 | $ | 109,597 | $ | 51,963 | $ | 29,131 | $ | 18,779 | $ | 17,681 | $ | 117,554 | $ | 39,077 | $ | 28,738 | $ | 20,191 | $ | 13,160 | $ | 101,166 | $ | 47,533 | $ | 28,742 | $ | 18,559 | $ | 14,763 | $ | 109,597 | ||||||||||||||||||||||||||||||||||||||||
F-16
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
CL Realty | $ | 2,698 | $ | 8,065 | $ | 7,393 | $ | 28,013 | $ | 2,698 | $ | 8,065 | ||||||||||||
Temco | 1,419 | 6,426 | 8,305 | 2,180 | 1,419 | 6,426 | ||||||||||||||||||
Palisades West | 12,496 | 1,421 | 267 | 13,588 | 12,496 | 1,421 | ||||||||||||||||||
Other ventures | 7,659 | 12,865 | 14,494 | 12,074 | 7,659 | 12,865 | ||||||||||||||||||
Total | $ | 24,272 | $ | 28,777 | $ | 30,459 | $ | 55,855 | $ | 24,272 | $ | 28,777 | ||||||||||||
(Loss) Earnings: | ||||||||||||||||||||||||
CL Realty | $ | (8,500 | ) | $ | 6,780 | $ | 3,400 | |||||||||||||||||
Temco | (2,729 | ) | 940 | 258 | ||||||||||||||||||||
Earnings (loss): | ||||||||||||||||||||||||
CL Realty(e) | $ | 226 | $ | (8,500 | ) | $ | 6,780 | |||||||||||||||||
Temco(f) | 210 | (2,729 | ) | 940 | ||||||||||||||||||||
Palisades West | 4,626 | 1,218 | 230 | 4,668 | 4,626 | 1,218 | ||||||||||||||||||
Other ventures | (2,628 | ) | (2,488 | ) | (406 | ) | ||||||||||||||||||
Other ventures(g) | (17,421 | ) | (2,628 | ) | (2,488 | ) | ||||||||||||||||||
Total | $ | (9,231 | ) | $ | 6,450 | $ | 3,482 | $ | (12,317 | ) | $ | (9,231 | ) | $ | 6,450 | |||||||||
Our equity in their (loss) earnings: | ||||||||||||||||||||||||
CL Realty(e) | $ | (4,250 | ) | $ | 3,377 | $ | 1,700 | |||||||||||||||||
Temco(f) | (1,365 | ) | 469 | 129 | ||||||||||||||||||||
Our equity in their earnings (loss): | ||||||||||||||||||||||||
CL Realty | $ | 113 | $ | (4,250 | ) | $ | 3,377 | |||||||||||||||||
Temco | 105 | (1,365 | ) | 469 | ||||||||||||||||||||
Palisades West | 1,156 | 304 | 58 | 1,167 | 1,156 | 304 | ||||||||||||||||||
Other ventures(c) | (3,312 | ) | 482 | 1,499 | (1,553 | ) | (3,312 | ) | 482 | |||||||||||||||
Recognition of deferred gain(d) | — | 10 | 346 | 4,869 | — | 10 | ||||||||||||||||||
Total | $ | (7,771 | ) | $ | 4,642 | $ | 3,732 | $ | 4,701 | $ | (7,771 | ) | $ | 4,642 | ||||||||||
(a) | Total includes current maturities of $75,121,000 at year-end 2010, of which $43,166,000 is non-recourse to us, and $80,625,000 at year-end 2009, | |
(b) | Principally includes deferred income from leasehold improvements funded by tenants in excess of leasehold improvement allowances. These amounts are recognized as rental income over the lease term and are offset by depreciation expense related to these tenant improvements. There is no effect on venture net income. | |
(c) | Our share of the equity in other ventures reflects our ownership interests ranging from 25 to 50 percent, excluding venture losses that exceed our investment where we are not obligated to fund those losses. | |
(d) | ||
(e) | In 2010, CL Realty’s earnings include impairment charges of $4,458,000 principally related to a commercial real estate project located near the Texas Gulf Coast. In 2009, CL Realty’s loss includes impairment charges of $3,300,000 related to two residential real estate projects located in Tampa, Florida and an impairment charge of $5,238,000 related to an equity investment in an unconsolidated venture. | |
(f) | In 2009, Temco Associates’ loss includes an impairment charge of $1,263,000 related to a residential real estate project located in Atlanta, Georgia. |
F-17
(g) | In 2010, other ventures loss includes a $13,061,000 loss on sale of a golf course and country club property in Denton, Texas. This loss did not impact our equity in the earnings (loss) of this venture as we exclude losses that exceed our investment where we are not obligated to provide additional equity. |
Note 8 — | Receivables |
At Year-End | At Year-End | |||||||||||||||||||
2009 | 2008 | 2010 | 2009 | |||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||
Seller financing notes receivable, average interest rate of 5.76% in 2009 and 6.87% in 2008 | $ | 1,112 | $ | 410 | ||||||||||||||||
Notes receivable, average interest rate of 9.60% in 2008 | — | 1,336 | ||||||||||||||||||
Seller financing notes receivable, average interest rate of 7.93% at year-end 2010 and 5.76% at year-end 2009 | $ | 383 | $ | 1,112 | ||||||||||||||||
Note receivable, average interest rate of 7.75% at year-end 2010 | 674 | — | ||||||||||||||||||
Due from qualified intermediary (see Note 3 for additional information) | 1,347 | — | ||||||||||||||||||
Accrued interest and other | 873 | 2,742 | 615 | 873 | ||||||||||||||||
$ | 1,985 | $ | 4,488 | 3,019 | 1,985 | |||||||||||||||
Allowance for bad debts | (144 | ) | (226 | ) | (144 | ) | (144 | ) | ||||||||||||
$ | 1,841 | $ | 4,262 | $ | 2,875 | $ | 1,841 | |||||||||||||
F-18
Note 9 — | Debt |
At Year-End | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
Term loan facility — average interest rate of 4.90% at year-end 2009 and 4.77% at year-end 2008 | $ | 125,000 | $ | 175,000 | ||||
Revolving loan facility — average interest rate of 5.12% at year-end 2008 | — | 59,900 | ||||||
Secured promissory note — interest rate of 2.73% at year-end 2009 and 3.01% at year-end 2008 | 16,716 | 16,000 | ||||||
Other indebtedness due through 2011 at variable interest rates based on prime (3.25% at year-end 2009 and 2008) and at fixed interest rates ranging from 8.00% to 9.50% | 74,910 | 86,502 | ||||||
$ | 216,626 | $ | 337,402 | |||||
At Year-End | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Term loan facility — average interest rate of 6.50% at year-end 2010 and 5.54% at year-end 2009 | $ | 125,000 | $ | 125,000 | ||||
Secured promissory notes — average interest rates of 4.51% at year-end 2010 and 2.73% at year-end 2009 | 41,716 | 16,716 | ||||||
Other indebtedness due through 2011 at variable interest rates based on prime (3.75% at year-end 2010 and 3.25% at year-end 2009) and fixed interest rate of 8.00% | 54,873 | 74,910 | ||||||
$ | 221,589 | $ | 216,626 | |||||
F-18
F-19
Note 10 — | Fair Value |
F-19
Fair Value Measurements | Year-End | Year-End 2010 | Year-End 2009 | |||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2009 | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap agreement | $ | — | $ | (393 | ) | $ | — | $ | (393 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (393 | ) | $ | — | $ | (393 | ) | ||||||||||||||||||||
Non-Financial Assets and Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | $ | — | $ | — | $ | 12,297 | $ | 12,297 | $ | — | $ | — | $ | 10,386 | $ | 10,386 | $ | — | $ | — | $ | 12,297 | $ | 12,297 | ||||||||||||||||||||||||
Assets held for sale | $ | — | $ | — | $ | 2,879 | $ | 2,879 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,879 | $ | 2,879 |
F-20
At Year-end 2009 | At Year-end 2008 | |||||||||||||||||||
Carrying | Fair | Carrying | Fair | Valuation | ||||||||||||||||
Amount | Value | Amount | Value | Technique | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Fixed rate debt | $ | (3,431 | ) | $ | (3,505 | ) | $ | (8,372 | ) | $ | (8,654 | ) | Level 2 |
Year-End 2010 | Year-End 2009 | |||||||||||||||||||
Carrying | Fair | Carrying | Fair | Valuation | ||||||||||||||||
Amount | Value | Amount | Value | Technique | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Fixed rate debt | $ | (29,931 | ) | $ | (30,164 | ) | $ | (3,431 | ) | $ | (3,505 | ) | Level 2 |
Note 11 — | Derivative Instruments |
F-20
Liability Derivatives | ||||||||||||||||
Year-End 2009 | Year-End 2008 | |||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | |||||||||||||
Location | Value | Location | Value | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Interest rate swap agreement | Other liabilities | $ | 393 | Other liabilities | $ | 1,939 |
Note 12 — | Capital Stock |
Weighted | Aggregate | |||||||||||||||
Average | Intrinsic Value | |||||||||||||||
Weighted | Remaining | (Current | ||||||||||||||
Average | Contractual | Value Less | ||||||||||||||
Shares | Exercise Price | Term | Exercise Price) | |||||||||||||
(In thousands) | (Per share) | (In years) | (In thousands) | |||||||||||||
Outstanding | 1,341 | $ | 20.16 | 5 | $ | 5,938 | ||||||||||
Exercisable | 1,204 | $ | 19.10 | 4 | $ | 5,938 |
F-21
Weighted | Aggregate | |||||||||||||||
Average | Intrinsic Value | |||||||||||||||
Weighted | Remaining | (Current | ||||||||||||||
Average | Contractual | Value Less | ||||||||||||||
Shares | Exercise Price | Term | Exercise Price) | |||||||||||||
(In thousands) | (Per share) | (In years) | (In thousands) | |||||||||||||
Outstanding | 1,242 | $ | 20.61 | 4 | $ | 3,429 | ||||||||||
Exercisable | 1,201 | $ | 20.27 | 4 | $ | 3,429 |
Note 13 — | Other Comprehensive Income |
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Consolidated net income | $ | 61,574 | $ | 14,209 | $ | 30,566 | $ | 5,834 | $ | 61,574 | $ | 14,209 | ||||||||||||
Change in fair value of interest rate swap agreement | 1,546 | (1,939 | ) | — | 393 | 1,546 | (1,939 | ) | ||||||||||||||||
Income tax effect of change in fair value | (542 | ) | 679 | — | (137 | ) | (542 | ) | 679 | |||||||||||||||
Other comprehensive income | 62,578 | 12,949 | 30,566 | 6,090 | 62,578 | 12,949 | ||||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | (2,467 | ) | (2,235 | ) | (5,771 | ) | (709 | ) | (2,467 | ) | (2,235 | ) | ||||||||||||
Other comprehensive income attributable to Forestar Group Inc. | $ | 60,111 | $ | 10,714 | $ | 24,795 | $ | 5,381 | $ | 60,111 | $ | 10,714 | ||||||||||||
Note 14 — | Net Income per Share |
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Earnings available to common shareholders: | ||||||||||||||||||||||||
Consolidated net income | $ | 5,834 | $ | 61,574 | $ | 14,209 | ||||||||||||||||||
Less: Net income attributable to noncontrolling interest | (709 | ) | (2,467 | ) | (2,235 | ) | ||||||||||||||||||
Net income attributable to Forestar Group Inc. | $ | 5,125 | $ | 59,107 | $ | 11,974 | ||||||||||||||||||
Weighted average common shares outstanding — basic | 35,805 | 35,455 | 35,380 | 35,815 | 35,805 | 35,455 | ||||||||||||||||||
Dilutive effect of stock options | 94 | 305 | — | 196 | 94 | 305 | ||||||||||||||||||
Dilutive effect of restrict stock and restricted stock units | 203 | 132 | — | |||||||||||||||||||||
Dilutive effect of restricted stock and restricted stock units | 366 | 203 | 132 | |||||||||||||||||||||
Weighted average common shares outstanding — diluted | 36,102 | 35,892 | 35,380 | 36,377 | 36,102 | 35,892 | ||||||||||||||||||
F-22
Note 15 — | Income Taxes |
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Current tax provision: | ||||||||||||||||||||||||
U.S. Federal | $ | (51,210 | ) | $ | (14,954 | ) | $ | (28,782 | ) | $ | (7,582 | ) | $ | (51,210 | ) | $ | (14,954 | ) | ||||||
State and other | (7,031 | ) | (1,680 | ) | (3,133 | ) | (1,252 | ) | (7,031 | ) | (1,680 | ) | ||||||||||||
(58,241 | ) | (16,634 | ) | (31,915 | ) | (8,834 | ) | (58,241 | ) | (16,634 | ) | |||||||||||||
Deferred tax provision: | ||||||||||||||||||||||||
U.S. Federal | 21,639 | 11,124 | 16,509 | 6,084 | 21,639 | 11,124 | ||||||||||||||||||
State and other | 969 | 275 | 1,497 | 280 | 969 | 275 | ||||||||||||||||||
22,608 | 11,399 | 18,006 | 6,364 | 22,608 | 11,399 | |||||||||||||||||||
Income tax expense | $ | (35,633 | ) | $ | (5,235 | ) | $ | (13,909 | ) | $ | (2,470 | ) | $ | (35,633 | ) | $ | (5,235 | ) | ||||||
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | 35 | % | 35 | % | 35 | % | ||||||||||||
State, net of federal benefit | 4 | 5 | 3 | 8 | 4 | 5 | ||||||||||||||||||
Finalization of deferred tax balance transferred at spin-off | — | 2 | — | — | — | 2 | ||||||||||||||||||
Noncontrolling interests | (1 | ) | (4 | ) | (5 | ) | (3 | ) | (1 | ) | (4 | ) | ||||||||||||
Charitable contributions | (5 | ) | — | (2 | ) | |||||||||||||||||||
Compensation | 3 | — | — | |||||||||||||||||||||
Percentage depletion | — | (6 | ) | (2 | ) | (10 | ) | — | (6 | ) | ||||||||||||||
Qualified timber gains | (1 | ) | (4 | ) | — | — | (1 | ) | (4 | ) | ||||||||||||||
Other | — | (1 | ) | — | 2 | — | 1 | |||||||||||||||||
Effective tax rate | 37 | % | 27 | % | 31 | % | 30 | % | 37 | % | 27 | % | ||||||||||||
At Year-End | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Deferred Tax Assets: | ||||||||
Real estate | $ | 57,419 | $ | 50,699 | ||||
Income producing properties | — | 1,893 | ||||||
Employee benefits | 10,686 | 8,528 | ||||||
Accruals not deductible until paid | 1,013 | 141 | ||||||
Other | — | 140 | ||||||
Gross deferred tax assets | 69,118 | 61,401 | ||||||
Deferred Tax Liabilities: | ||||||||
Undeveloped land | (14,174 | ) | (16,150 | ) | ||||
Income producing properties | (5,069 | ) | — | |||||
Timber | (2,734 | ) | (3,708 | ) | ||||
Other | — | (792 | ) | |||||
Gross deferred tax liabilities | (21,977 | ) | (20,650 | ) | ||||
Net Deferred Tax Asset | $ | 47,141 | $ | 40,751 | ||||
F-23
At Year-End | ||||||||
2009 | 2008 | |||||||
(In thousands) | ||||||||
Deferred Tax Assets: | ||||||||
Real estate | $ | 52,592 | $ | 44,711 | ||||
Employee benefits | 8,528 | 3,594 | ||||||
Accruals not deductible until paid | 141 | 986 | ||||||
Other | 140 | 696 | ||||||
Gross deferred tax assets | 61,401 | 49,987 | ||||||
Deferred Tax Liabilities: | ||||||||
Undeveloped land | (16,150 | ) | (25,869 | ) | ||||
Timber | (3,708 | ) | (5,638 | ) | ||||
Other | (792 | ) | (1,296 | ) | ||||
Gross deferred tax liabilities | (20,650 | ) | (32,803 | ) | ||||
Net Deferred Tax Asset | $ | 40,751 | $ | 17,184 | ||||
For the Year | At Year-End | |||||||||||||||
2009 | 2008 | 2010 | 2009 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Balance at beginning of year | $ | — | $ | — | $ | 7,441 | $ | — | ||||||||
Additions based on tax positions related to the current year | 7,441 | — | — | 7,441 | ||||||||||||
Additions for tax positions of prior years | — | — | — | — | ||||||||||||
Reductions for tax positions of prior years | — | — | (47 | ) | — | |||||||||||
Settlements | — | — | — | — | ||||||||||||
Balance at end of year | $ | 7,441 | $ | — | $ | 7,394 | $ | 7,441 | ||||||||
F-24
Note 16 — | Litigation and Environmental Contingencies |
F-24
Note 17 — | Commitments and Other Contingencies |
F-25
Note 18 — | Segment Information |
Items Not | ||||||||||||||||||||
Real | Mineral | Fiber | Allocated to | |||||||||||||||||
Estate | Resources | Resources | Segments | Total | ||||||||||||||||
For the year or at year-end 2009: | ||||||||||||||||||||
Revenues | $ | 94,436 | $ | 36,256 | $ | 15,559 | $ | — | $ | 146,251 | ||||||||||
Depreciation and amortization | 2,167 | 253 | 35 | 7,331 | 9,786 | |||||||||||||||
Equity in (loss) earnings of unconsolidated ventures | (8,161 | ) | 390 | — | — | (7,771 | ) | |||||||||||||
Income before taxes | 3,182 | 32,370 | 9,622 | 49,566 | (a) | 94,740 | ||||||||||||||
Total assets | 654,250 | 1,356 | 20,088 | 109,040 | 784,734 | |||||||||||||||
Investment in unconsolidated ventures | 109,597 | — | — | — | 109,597 | |||||||||||||||
Capital expenditures(b) | 5,368 | 1,284 | 120 | 523 | 7,295 | |||||||||||||||
For the year or at year-end 2008: | ||||||||||||||||||||
Revenues | $ | 98,859 | $ | 47,671 | $ | 13,192 | $ | — | $ | 159,722 | ||||||||||
Depreciation and amortization | 2,076 | — | 36 | 5,561 | 7,673 | |||||||||||||||
Equity in earnings of unconsolidated ventures | 3,480 | 1,162 | — | — | 4,642 | |||||||||||||||
Income (loss) before taxes | 9,075 | 44,076 | 8,896 | (44,838 | )(a) | 17,209 | ||||||||||||||
Total assets | 732,401 | 376 | 51,321 | 50,478 | 834,576 | |||||||||||||||
Investment in unconsolidated ventures | 117,554 | — | — | — | 117,554 | |||||||||||||||
Capital expenditures(b) | 508 | 370 | 282 | 4,037 | 5,197 | |||||||||||||||
For the year or at year-end 2007: | ||||||||||||||||||||
Revenues | $ | 142,729 | $ | 20,818 | $ | 14,439 | $ | — | $ | 177,986 | ||||||||||
Depreciation and amortization | 2,839 | — | 76 | — | 2,915 | |||||||||||||||
Equity in earnings of unconsolidated ventures | 3,732 | — | — | — | 3,732 | |||||||||||||||
Income (loss) before taxes | 39,507 | 18,581 | 7,950 | (27,334 | )(a) | 38,704 | ||||||||||||||
Total assets | 658,813 | — | 55,011 | 34,902 | 748,726 | |||||||||||||||
Investment in unconsolidated ventures | 101,687 | — | — | — | 101,687 | |||||||||||||||
Capital expenditures(b) | 2,788 | — | 410 | — | 3,198 |
F-26F-25
For the Year | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
(In thousands) | ||||||||||||
General and administrative | $ | (22,399 | ) | $ | (19,318 | ) | $ | (11,119 | ) | |||
Expense allocation from Temple-Inland (see Note 21) | — | — | (6,294 | ) | ||||||||
Share-based compensation (allocated from Temple-Inland in 2007, see Note 19) | (11,998 | ) | (4,516 | ) | (1,397 | ) | ||||||
Gain on sale of assets | 104,047 | — | — | |||||||||
Interest expense | (20,459 | ) | (21,283 | ) | (9,229 | ) | ||||||
Other non-operating income | 375 | 279 | 705 | |||||||||
$ | 49,566 | $ | (44,838 | ) | $ | (27,334 | ) | |||||
Items Not | ||||||||||||||||||||
Real | Mineral | Fiber | Allocated to | |||||||||||||||||
Estate | Resources | Resources | Segments | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the year or at year-end 2010: | ||||||||||||||||||||
Revenues | $ | 68,269 | $ | 24,790 | $ | 8,301 | $ | — | $ | 101,360 | ||||||||||
Depreciation and amortization | 3,089 | 333 | 39 | 5,553 | 9,014 | |||||||||||||||
Equity in earnings of unconsolidated ventures | 2,629 | 2,072 | — | — | 4,701 | |||||||||||||||
(Loss) income before taxes | (4,634 | ) | 22,783 | 5,058 | (15,612 | )(a) | 7,595 | |||||||||||||
Total assets | 668,689 | 13,399 | 18,258 | 88,978 | 789,324 | |||||||||||||||
Investment in unconsolidated ventures | 101,166 | — | — | — | 101,166 | |||||||||||||||
Capital expenditures(b) | 2,392 | 49 | 3 | 258 | 2,702 | |||||||||||||||
For the year or at year-end 2009: | ||||||||||||||||||||
Revenues | $ | 94,436 | $ | 36,256 | $ | 15,559 | $ | — | $ | 146,251 | ||||||||||
Depreciation and amortization | 2,167 | 253 | 35 | 7,331 | 9,786 | |||||||||||||||
Equity in (loss) earnings of unconsolidated ventures | (8,161 | ) | 390 | — | — | (7,771 | ) | |||||||||||||
Income before taxes | 3,182 | 32,370 | 9,622 | 49,566 | (a) | 94,740 | ||||||||||||||
Total assets | 654,250 | 1,356 | 20,088 | 109,040 | 784,734 | |||||||||||||||
Investment in unconsolidated ventures | 109,597 | — | — | — | 109,597 | |||||||||||||||
Capital expenditures(b) | 5,368 | 1,284 | 120 | 523 | 7,295 | |||||||||||||||
For the year or at year-end 2008: | ||||||||||||||||||||
Revenues | $ | 98,859 | $ | 47,671 | $ | 13,192 | $ | — | $ | 159,722 | ||||||||||
Depreciation and amortization | 2,076 | — | 36 | 5,561 | 7,673 | |||||||||||||||
Equity in earnings of unconsolidated ventures | 3,480 | 1,162 | — | — | 4,642 | |||||||||||||||
Income (loss) before taxes | 9,075 | 44,076 | 8,896 | (44,838 | )(a) | 17,209 | ||||||||||||||
Total assets | 732,401 | 376 | 51,321 | 50,478 | 834,576 | |||||||||||||||
Investment in unconsolidated ventures | 117,554 | — | — | — | 117,554 | |||||||||||||||
Capital expenditures(b) | 508 | 370 | 282 | 4,037 | 5,197 |
(a) | Items not allocated to segments consist of: |
For the Year | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(In thousands) | ||||||||||||
General and administrative | $ | (17,341 | ) | $ | (22,399 | ) | $ | (19,318 | ) | |||
Share-based compensation | (11,596 | ) | (11,998 | ) | (4,516 | ) | ||||||
Gain on sale of assets | 28,607 | 104,047 | — | |||||||||
Interest expense | (16,446 | ) | (20,459 | ) | (21,283 | ) | ||||||
Other non-operating income | 1,164 | 375 | 279 | |||||||||
$ | (15,612 | ) | $ | 49,566 | $ | (44,838 | ) | |||||
(b) | Consists of expenditures for property and equipment and reforestation. |
F-26
Note 19 — | Variable Interest Entities |
Note 20 — | Share-Based Compensation |
F-27
F-27
Weighted | ||||||||
Average | ||||||||
Grant Date | ||||||||
Equivalent Units | Fair Value | |||||||
(In thousands) | (Per unit) | |||||||
Non-vested at beginning of period | 268 | $ | 9.43 | |||||
Granted | 197 | 17.78 | ||||||
Vested | (83 | ) | 18.00 | |||||
Forfeited | (6 | ) | 10.55 | |||||
Non-vested at end of period | 376 | $ | 11.88 | |||||
Weighted | ||||||||
Average | ||||||||
Grant Date | ||||||||
Equivalent Units | Fair Value | |||||||
(In thousands) | (Per unit) | |||||||
Non-vested at beginning of year | 5 | $ | 28.85 | |||||
Granted | 1,147 | 6.00 | ||||||
Vested | (146 | ) | 11.10 | |||||
Forfeited | (1 | ) | 28.85 | |||||
Non-vested at end of year | 1,005 | $ | 5.35 | |||||
Aggregate | ||||||||||||||||
Weighted | Intrinsic | |||||||||||||||
Weighted | Average | Value | ||||||||||||||
Average | Remaining | (Current | ||||||||||||||
Rights | Exercise | Contractual | Value Less | |||||||||||||
Outstanding | Price | Term | Exercise Price) | |||||||||||||
(In thousands) | (Per share) | (In years) | (In thousands) | |||||||||||||
Balance at beginning of period | 737 | $ | 9.29 | 9 | $ | 9,346 | ||||||||||
Granted | 212 | 17.80 | ||||||||||||||
Exercised | (31 | ) | 9.29 | |||||||||||||
Forfeited | (9 | ) | 9.29 | |||||||||||||
Balance at end of period | 909 | $ | 11.28 | 8 | $ | 7,289 | ||||||||||
Exercisable at end of period | 159 | $ | 9.29 | 8 | $ | 1,596 |
F-28
Weighted | Weighted | |||||||||||||||
Average | Average | |||||||||||||||
Grant Date | Restricted | Grant Date | ||||||||||||||
Restricted Shares | Fair Value | Shares | Fair Value | |||||||||||||
(In thousands) | (Per share) | (In thousands) | (Per share) | |||||||||||||
Non-vested at beginning of year | 207 | $ | 21.89 | |||||||||||||
Non-vested at beginning of period | 331 | $ | 17.43 | |||||||||||||
Granted | 125 | 10.20 | 308 | 17.80 | ||||||||||||
Vested | — | — | — | — | ||||||||||||
Forfeited | (1 | ) | 28.85 | (3 | ) | 28.20 | ||||||||||
Non-vested at end of year | 331 | $ | 17.43 | |||||||||||||
Non-vested at end of period | 636 | $ | 17.56 | |||||||||||||
F-28
Weighted | Aggregate | |||||||||||||||||||||||||||
Weighted | Average | Weighted | Intrinsic | |||||||||||||||||||||||||
Average | Remaining | Weighted | Average | Value | ||||||||||||||||||||||||
Options | Exercise | Contractual | Average | Remaining | (Current | |||||||||||||||||||||||
Outstanding | Price | Term | Options | Exercise | Contractual | Value Less | ||||||||||||||||||||||
(In thousands) | (Per share) | (In years) | Outstanding | Price | Term | Exercise Price) | ||||||||||||||||||||||
(In thousands) | (Per share) | (In years) | (In thousands) | |||||||||||||||||||||||||
Balance at beginning of year | 622 | $ | 28.85 | 9 | ||||||||||||||||||||||||
Balance at beginning of period | 780 | $ | 24.80 | 8 | $ | 2,052 | ||||||||||||||||||||||
Granted | 161 | 9.29 | 181 | 17.80 | ||||||||||||||||||||||||
Exercised | — | — | — | — | ||||||||||||||||||||||||
Forfeited | (3 | ) | 28.85 | (4 | ) | 28.85 | ||||||||||||||||||||||
Balance at end of year | 780 | $ | 24.80 | 8 | ||||||||||||||||||||||||
Exercisable at end of year | 183 | $ | 28.85 | 8 | ||||||||||||||||||||||||
Balance at end of period | 957 | $ | 23.45 | 8 | $ | 1,890 | ||||||||||||||||||||||
Exercisable at end of period | 395 | $ | 26.85 | 7 | $ | 405 |
For the Year | For the Year | |||||||||||||||||||
2009 | 2008 | 2010 | 2009 | 2008 | ||||||||||||||||
Expected dividend yield | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||
Expected stock price volatility | 41.8 | % | 31.0 | % | 51.0 | % | 41.8 | % | 31.0 | % | ||||||||||
Risk-free interest rate | 1.8 | % | 2.7 | % | 2.3 | % | 1.8 | % | 2.7 | % | ||||||||||
Expected life of options (years) | 6 | 6 | 6 | 6 | 6 | |||||||||||||||
Weighted average estimated fair value of options granted | $ | 3.94 | $ | 10.22 | $ | 8.98 | $ | 3.94 | $ | 10.22 |
F-29
F-29
Aggregate | ||||||||
Equivalent | Current | |||||||
Units | Value | |||||||
(In thousands) | (Per unit) | |||||||
Awards on Forestar stock | 24 | $ | 524 | |||||
Awards on Guaranty stock | 24 | — | ||||||
Awards on Temple-Inland stock | 72 | 1,510 | ||||||
$ | 2,034 | |||||||
Aggregate | Aggregate | |||||||||||||||||||||||||||||||
Weighted | Intrinsic | Weighted | Intrinsic | |||||||||||||||||||||||||||||
Average | Value | Average | Value | |||||||||||||||||||||||||||||
Weighted | Remaining | (Current | Weighted | Remaining | (Current | |||||||||||||||||||||||||||
Average | Contractual | Value Less | Options | Average | Contractual | Value Less | ||||||||||||||||||||||||||
Shares | Exercise Price | Term | Exercise Price) | Outstanding | Exercise Price | Term | Exercise Price) | |||||||||||||||||||||||||
(In thousands) | (Per share) | (In years) | (In thousands) | (In thousands) | (Per share) | (In years) | (In thousands) | |||||||||||||||||||||||||
Outstanding on Forestar stock | 81 | $ | 21.53 | 5 | $ | 316 | 77 | $ | 22.08 | 4 | $ | 184 | ||||||||||||||||||||
Outstanding on Guaranty stock | 86 | 13.55 | 5 | — | ||||||||||||||||||||||||||||
Outstanding on Temple-Inland stock | 218 | 18.01 | 5 | 904 | 171 | 20.07 | 5 | 414 | ||||||||||||||||||||||||
$ | 1,220 | $ | 598 | |||||||||||||||||||||||||||||
Exercisable on Forestar stock | 66 | $ | 19.73 | 5 | $ | 316 | 72 | $ | 21.47 | 4 | $ | 184 | ||||||||||||||||||||
Exercisable on Guaranty stock | 70 | 12.41 | 5 | — | ||||||||||||||||||||||||||||
Exercisable on Temple-Inland stock | 172 | 16.59 | 5 | 904 | 155 | 19.65 | 5 | 414 | ||||||||||||||||||||||||
$ | 1,220 | $ | 598 | |||||||||||||||||||||||||||||
F-30
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Cash-settled awards | $ | 8,174 | $ | (488 | ) | $ | 763 | $ | 6,023 | $ | 8,174 | $ | (488 | ) | ||||||||||
Equity-settled awards | — | 750 | — | — | — | 750 | ||||||||||||||||||
Restricted stock | 1,741 | 1,264 | 142 | 3,461 | 1,741 | 1,264 | ||||||||||||||||||
Stock options | 2,083 | 2,990 | 492 | 2,112 | 2,083 | 2,990 | ||||||||||||||||||
Pre-tax share-based compensation expense | 11,998 | 4,516 | 1,397 | $ | 11,596 | $ | 11,998 | $ | 4,516 | |||||||||||||||
Income tax benefit | (4,439 | ) | (1,355 | ) | (503 | ) | ||||||||||||||||||
$ | 7,559 | $ | 3,161 | $ | 894 | |||||||||||||||||||
F-30
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
General and administrative | $ | 7,527 | $ | 2,910 | $ | 1,211 | $ | 5,240 | $ | 7,527 | $ | 2,910 | ||||||||||||
Other operating | 4,471 | 1,606 | 186 | 6,356 | 4,471 | 1,606 | ||||||||||||||||||
$ | 11,998 | $ | 4,516 | $ | 1,397 | $ | 11,596 | $ | 11,998 | $ | 4,516 | |||||||||||||
Note | Retirement, Pension and Postretirement Plans |
F-31
Legal, human resources and other administrative costs | $ | 2,842 | ||
Variable compensation | 883 | |||
Accounting and finance | 1,425 | |||
Information technology support | 935 | |||
Internal audit, governance and other | 209 | |||
6,294 | ||||
Share-based compensation | 1,397 | |||
Pension and postretirement | 218 | |||
$ | 7,909 | |||
Note 22 — | Supplemental Oil and Gas Disclosures (Unaudited) |
F-32
F-31
F-32
Net Reserves | Net Reserves | |||||||||||||||
Oil | Natural Gas | Oil | Natural Gas | |||||||||||||
(Barrels) | (Mcf) | (Barrels) | (Mcf) | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Consolidated entities: | ||||||||||||||||
Year-end 2008 | 457 | 7,538 | 457 | 7,538 | ||||||||||||
Revisions of previous estimates | 171 | (402 | ) | 171 | (484 | ) | ||||||||||
Extensions and discoveries | 59 | 1,018 | 59 | 1,018 | ||||||||||||
Production | (107 | ) | (1,494 | ) | (107 | ) | (1,412 | ) | ||||||||
Year-end 2009 | 580 | 6,660 | 580 | 6,660 | ||||||||||||
Our share of ventures accounted for using the equity method | ||||||||||||||||
Revisions of previous estimates | 123 | 709 | ||||||||||||||
Extensions and discoveries | 21 | 514 | ||||||||||||||
Production | (115 | ) | (1,224 | ) | ||||||||||||
Year-end 2010 | 609 | 6,659 | ||||||||||||||
Our share of ventures accounted for using the equity method: | ||||||||||||||||
Year-end 2008 | — | 125 | — | 125 | ||||||||||||
Revisions of previous estimates | — | 2 | — | 2 | ||||||||||||
Extensions and discoveries | — | 2,463 | — | 2,463 | ||||||||||||
Production | — | (82 | ) | — | (82 | ) | ||||||||||
Year-end 2009 | — | 2,508 | — | 2,508 | ||||||||||||
Revisions of previous estimates | — | 1,041 | ||||||||||||||
Extensions and discoveries | — | 895 | ||||||||||||||
Production | — | (573 | ) | |||||||||||||
Total consolidated and our share of equity method ventures at year-end 2009 | 580 | 9,168 | ||||||||||||||
Year-end 2010 | — | 3,871 | ||||||||||||||
Total consolidated and our share of equity method ventures: | ||||||||||||||||
Year-end 2008 | 457 | 7,663 | ||||||||||||||
Year-end 2009 | 580 | 9,168 | ||||||||||||||
Year-end 2010 | 609 | 10,530 |
F-33
At Year End | At Year-End | |||||||||||||||||||
2009 | 2008 | 2010 | 2009 | 2008 | ||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||
Consolidated entities: | ||||||||||||||||||||
Proved oil and gas properties | $ | 450 | $ | 131 | $ | 451 | $ | 450 | $ | 131 | ||||||||||
Accumulated depreciation, depletion and amortization | (69 | ) | — | (133 | ) | (69 | ) | — | ||||||||||||
Net Capitalized Costs | $ | 381 | $ | 131 | ||||||||||||||||
Net capitalized costs | $ | 318 | $ | 381 | $ | 131 | ||||||||||||||
For the Year | For the Year | |||||||||||||||||||
2009 | 2008 | 2010 | 2009 | 2008 | ||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||
Consolidated entities: | ||||||||||||||||||||
Acquisition of properties | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Exploration costs | 209 | 95 | $ | — | $ | 209 | $ | 95 | ||||||||||||
Development costs | 215 | 36 | $ | 1 | $ | 215 | $ | 36 | ||||||||||||
Our share in ventures accounted for using the equity method: | ||||||||||||||||||||
Acquisition of properties | $ | — | $ | — | ||||||||||||||||
Exploration costs | — | — | ||||||||||||||||||
Development costs | — | — |
F-34
At Year End | At Year-End | |||||||||||||||||||
2009 | 2008 | 2010 | 2009 | 2008 | ||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||
Consolidated entities: | ||||||||||||||||||||
Future cash inflows | $ | 57,416 | $ | 58,904 | $ | 74,264 | $ | 57,416 | $ | 58,904 | ||||||||||
Future production and development costs | (8,379 | ) | (6,450 | ) | (9,003 | ) | (8,379 | ) | (6,450 | ) | ||||||||||
Future income tax expenses | (15,362 | ) | (16,575 | ) | (20,570 | ) | (15,362 | ) | (16,575 | ) | ||||||||||
Future net cash flows | 33,675 | 35,879 | 44,691 | 33,675 | 35,879 | |||||||||||||||
10% annual discount for estimated timing of cash flows | (12,537 | ) | (13,994 | ) | (17,881 | ) | (12,537 | ) | (13,994 | ) | ||||||||||
Standardized measure of discounted future net cash flows | $ | 21,138 | $ | 21,885 | $ | 26,810 | $ | 21,138 | $ | 21,885 | ||||||||||
Our share in ventures accounted for using the equity method: | ||||||||||||||||||||
Future cash inflows | 8,265 | 633 | $ | 15,748 | $ | 8,265 | $ | 633 | ||||||||||||
Future production and development costs | (886 | ) | (68 | ) | (3,545 | ) | (886 | ) | (68 | ) | ||||||||||
Future income tax expenses | (2,333 | ) | (179 | ) | (3,542 | ) | (2,333 | ) | (179 | ) | ||||||||||
Future net cash flows | 5,046 | 386 | 8,661 | 5,046 | 386 | |||||||||||||||
10% annual discount for estimated timing of cash flows | (2,374 | ) | (198 | ) | (4,334 | ) | (2,374 | ) | (198 | ) | ||||||||||
Standardized measure of discounted future net cash flows | 2,672 | 188 | $ | 4,327 | $ | 2,672 | $ | 188 | ||||||||||||
Total consolidated and our share of equity method ventures standardized measure of discounted future net cash flows | $ | 23,810 | $ | 22,073 | ||||||||||||||||
Total consolidated and our share of equity method ventures | $ | 31,137 | $ | 23,810 | $ | 22,073 | ||||||||||||||
F-35
For the Year 2009 | For the Year | |||||||||||||||||||||||
Our Share of Equity | Our Share of Equity | |||||||||||||||||||||||
Consolidated | Method Ventures | Total | Consolidated | Method Ventures | Total | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Beginning of year | $ | 21,885 | $ | 188 | $ | 22,073 | ||||||||||||||||||
Year-end 2008 | $ | 21,885 | $ | 188 | $ | 22,073 | ||||||||||||||||||
Changes resulting from: | ||||||||||||||||||||||||
Net change in sales prices and production costs | (3,043 | ) | (97 | ) | (3,140 | ) | (3,043 | ) | (97 | ) | (3,140 | ) | ||||||||||||
Sales of oil and natural gas, net of production costs | (11,157 | ) | (299 | ) | (11,456 | ) | (11,157 | ) | (299 | ) | (11,456 | ) | ||||||||||||
Net change due to extensions and discoveries | 4,139 | 3,844 | 7,983 | 4,139 | 3,844 | 7,983 | ||||||||||||||||||
Net change due to revisions of quantity estimates | 5,693 | 1,169 | 6,862 | 5,693 | 1,169 | 6,862 | ||||||||||||||||||
Accretion of discount | 2,408 | 21 | 2,429 | 2,408 | 21 | 2,429 | ||||||||||||||||||
Net change in income taxes | 1,213 | (2,154 | ) | (941 | ) | 1,213 | (2,154 | ) | (941 | ) | ||||||||||||||
Aggregate change for the year | $ | (747 | ) | $ | 2,484 | $ | 1,737 | $ | (747 | ) | $ | 2,484 | $ | 1,737 | ||||||||||
End of year | $ | 21,138 | $ | 2,672 | $ | 23,810 | ||||||||||||||||||
Year-end 2009 | $ | 21,138 | $ | 2,672 | $ | 23,810 | ||||||||||||||||||
Changes resulting from: | ||||||||||||||||||||||||
Net change in sales prices and production costs | 9,929 | 939 | 10,868 | |||||||||||||||||||||
Sales of oil and natural gas, net of production costs | (12,690 | ) | (2,104 | ) | (14,794 | ) | ||||||||||||||||||
Net change due to extensions and discoveries | 2,148 | 1,526 | 3,674 | |||||||||||||||||||||
Net change due to revisions of quantity estimates | 9,153 | 2,224 | 11,377 | |||||||||||||||||||||
Accretion of discount | 2,340 | 279 | 2,619 | |||||||||||||||||||||
Net change in income taxes | (5,208 | ) | (1,209 | ) | (6,417 | ) | ||||||||||||||||||
Aggregate change for the year | $ | 5,672 | $ | 1,655 | $ | 7,327 | ||||||||||||||||||
Year-end 2010 | $ | 26,810 | $ | 4,327 | $ | 31,137 | ||||||||||||||||||
F-35F-36
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Consolidated entities: | ||||||||||||||||||||||||
Royalty revenues | $ | 11,910 | $ | 21,639 | $ | 13,114 | $ | 13,724 | $ | 11,910 | $ | 21,639 | ||||||||||||
Production costs | (753 | ) | (1,714 | ) | — | (1,034 | ) | (753 | ) | (1,714 | ) | |||||||||||||
Exploration expenses | (100 | ) | — | — | — | (100 | ) | — | ||||||||||||||||
Depreciation, depletion, amortization | (253 | ) | — | — | (334 | ) | (253 | ) | — | |||||||||||||||
Administrative expenses | (3,546 | ) | (3,121 | ) | (2,237 | ) | ||||||||||||||||||
Oil and natural gas administrative expenses | (3,295 | ) | (3,546 | ) | (3,121 | ) | ||||||||||||||||||
Income tax expenses | (2,200 | ) | (5,152 | ) | (3,327 | ) | (2,637 | ) | (2,200 | ) | (5,152 | ) | ||||||||||||
Results of operations | $ | 5,058 | $ | 11,652 | $ | 7,550 | $ | 6,424 | $ | 5,058 | $ | 11,652 | ||||||||||||
Our share in ventures accounted for using the equity method(a): | ||||||||||||||||||||||||
Royalty revenues | $ | 312 | $ | — | $ | — | $ | 2,359 | $ | 312 | $ | — | ||||||||||||
Production costs | (13 | ) | — | — | (255 | ) | (13 | ) | — | |||||||||||||||
Exploration expenses | — | — | — | — | — | — | ||||||||||||||||||
Depreciation, depletion, amortization | — | — | — | — | — | — | ||||||||||||||||||
Administrative expenses | (18 | ) | — | — | ||||||||||||||||||||
Oil and natural gas administrative expenses | (70 | ) | (18 | ) | — | |||||||||||||||||||
Income tax expenses | (84 | ) | — | — | (605 | ) | (84 | ) | — | |||||||||||||||
Results of operations | $ | 197 | $ | — | $ | — | $ | 1,429 | $ | 197 | $ | — | ||||||||||||
Total results of operations | $ | 5,255 | $ | 11,652 | $ | 7,550 | $ | 7,853 | $ | 5,255 | $ | 11,652 | ||||||||||||
�� |
(a) | Producing wells in ventures accounted for using the equity method began generating royalties in 2009. |
For the Year | For the Year | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
Consolidated entities: | ||||||||||||||||||||||||
Oil production (barrels) | 107,200 | 87,900 | 94,900 | 115,400 | 107,200 | 87,900 | ||||||||||||||||||
Average price per barrel | $ | 56.86 | $ | 106.66 | $ | 65.24 | $ | 73.09 | $ | 56.85 | $ | 106.66 | ||||||||||||
Natural gas production (millions of cubic feet) | 1,575.8 | 1,363.4 | 967.3 | 1,223.6 | 1,411.6 | 1,363.4 | ||||||||||||||||||
Average price per thousand cubic feet | $ | 4.09 | $ | 8.76 | $ | 6.69 | $ | 4.32 | $ | 4.12 | $ | 8.76 | ||||||||||||
Our share of ventures accounted for using the equity method: | ||||||||||||||||||||||||
Natural gas production (millions of cubic feet) | 572.8 | 82.1 | — | |||||||||||||||||||||
Average price per thousand cubic feet | $ | 4.12 | $ | 3.80 | $ | — | ||||||||||||||||||
Total consolidated and our share of equity method ventures: | ||||||||||||||||||||||||
Oil production (barrels) | 115,400 | 107,200 | 87,900 | |||||||||||||||||||||
Average price per barrel | $ | 73.09 | $ | 56.85 | $ | 106.66 | ||||||||||||||||||
Natural gas production (millions of cubic feet) | 1,796.4 | 1,493.7 | 1,363.4 | |||||||||||||||||||||
Average price per thousand cubic feet | $ | 4.26 | $ | 4.10 | $ | 8.76 |
F-36F-37
Note 23 — | Summary of Quarterly Results of Operations (Unaudited) |
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
2009 | ||||||||||||||||
Total revenues | $ | 29,077 | $ | 40,466 | $ | 45,307 | $ | 31,401 | ||||||||
Gross profit | 19,339 | 27,605 | 31,843 | 16,839 | ||||||||||||
Operating income | 323 | 91,283 | 38,753 | (5,297 | ) | |||||||||||
Equity in earnings (loss) of unconsolidated ventures | (572 | ) | (4,048 | ) | (2,443 | ) | (708 | ) | ||||||||
Income (loss) before taxes | (5,364 | ) | 82,232 | 31,157 | (10,818 | ) | ||||||||||
Net income (loss) attributable to Forestar Group Inc. | (3,892 | ) | 50,917 | 19,476 | (7,394 | ) | ||||||||||
Net income (loss) per share — basic | (0.11 | ) | 1.42 | 0.54 | (0.21 | ) | ||||||||||
Net income (loss) per share — diluted | (0.11 | ) | 1.41 | 0.54 | (0.21 | ) | ||||||||||
2008 | ||||||||||||||||
Total revenues | $ | 37,223 | $ | 51,597 | $ | 33,943 | $ | 36,959 | ||||||||
Gross profit | 19,305 | 36,951 | 21,368 | 21,896 | ||||||||||||
Operating income | 4,167 | 17,849 | 5,601 | 8,189 | ||||||||||||
Equity in earnings (loss) of unconsolidated ventures | 1,534 | 2,018 | 1,436 | (346 | ) | |||||||||||
Income before taxes | 117 | 14,937 | 2,037 | 2,353 | ||||||||||||
Net income (loss) attributable to Forestar Group Inc. | (238 | ) | 9,596 | 872 | 1,744 | |||||||||||
Net income (loss) per share — basic | (0.01 | ) | 0.27 | 0.02 | 0.05 | |||||||||||
Net income (loss) per share — diluted | (0.01 | ) | 0.27 | 0.02 | 0.05 |
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
2010 | ||||||||||||||||
Total revenues | $ | 26,358 | $ | 28,137 | $ | 24,013 | $ | 22,852 | ||||||||
Gross profit | 15,016 | 15,833 | 15,050 | 6,499 | ||||||||||||
Operating (loss) income | (571 | ) | 684 | 15,531 | 3,241 | |||||||||||
Equity in earnings of unconsolidated ventures | 371 | 287 | 82 | 3,961 | ||||||||||||
(Loss) income before taxes | (4,548 | ) | (2,886 | ) | 11,946 | 3,792 | ||||||||||
Net (loss) income attributable to Forestar Group Inc. | (2,972 | ) | (3,273 | ) | 8,922 | 2,448 | ||||||||||
Net (loss) income per share — basic | (0.08 | ) | (0.09 | ) | 0.25 | 0.07 | ||||||||||
Net (loss) income per share — diluted | (0.08 | ) | (0.09 | ) | 0.25 | 0.07 | ||||||||||
2009 | ||||||||||||||||
Total revenues | $ | 29,077 | $ | 40,466 | $ | 45,307 | $ | 31,401 | ||||||||
Gross profit | 19,339 | 27,605 | 31,843 | 16,839 | ||||||||||||
Operating income (loss) | 323 | 91,283 | 38,753 | (5,297 | ) | |||||||||||
Equity in (loss) earnings of unconsolidated ventures | (572 | ) | (4,048 | ) | (2,443 | ) | (708 | ) | ||||||||
(Loss) income before taxes | (5,364 | ) | 82,232 | 31,157 | (10,818 | ) | ||||||||||
Net (loss) income attributable to Forestar Group Inc. | (3,892 | ) | 50,917 | 19,476 | (7,394 | ) | ||||||||||
Net (loss) income per share — basic | (0.11 | ) | 1.42 | 0.54 | (0.21 | ) | ||||||||||
Net (loss) income per share — diluted | (0.11 | ) | 1.41 | 0.54 | (0.21 | ) |
Note 24 — | Subsequent |
F-37F-38
Costs Capitalized | Costs Capitalized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to Acquisition | Subsequent to Acquisition | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Improvements | Gross Amount Carried at End of Period | Initial Cost to Company | Improvements | Gross Amount Carried at End of Period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Buildings & | Less Cost of | Carrying | Land & Land | Buildings & | Accumulated | Date of | Date | Buildings & | Less Cost of | Carrying | Land & Land | Buildings & | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Improvements | Sales and Other | Costs(a) | Improvements | Improvements | Total | Depreciation | Construction | Acquired | Encumbrances | Land | Improvements | Sales and Other | Costs(a) | Improvements | Improvements | Total | Depreciation | Construction | Acquired | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entitled, Developed, and Under Development Projects: | Entitled, Developed, and Under Development Projects: | Entitled, Developed, and Under Development Projects: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CALIFORNIA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contra Costa County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
San Joaquin River | $ | 12,225 | $ | (3,430 | ) | $ | 8,795 | $ | 8,795 | $ | 12,225 | $ | (3,430 | ) | $ | 8,795 | $ | 8,795 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COLORADO | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Douglas County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pinery West | 7,308 | 1,826 | 9,134 | 9,134 | 2006 | 2006 | 7,308 | 2,022 | 9,330 | 9,330 | 2006 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weld County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Buffalo Highlands | 3,001 | 615 | 3,616 | 3,616 | 2006 | 2005 | 3,001 | 580 | 3,581 | 3,581 | 2006 | 2005 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Johnstown Farms | 2,749 | 9,028 | $ | 188 | 11,965 | 11,965 | 2002 | 2002 | 2,749 | 9,123 | $ | 188 | 12,060 | 12,060 | 2002 | 2002 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stonebraker | 3,878 | 1,388 | 5,266 | 5,266 | 2005 | 2005 | 3,878 | 1,411 | 5,289 | 5,289 | 2005 | 2005 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GEORGIA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bartow County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Towne West | 936 | 923 | 1,859 | 1,859 | 2007 | 936 | 923 | 1,859 | 1,859 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coweta County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cedar Creek Preserve | 852 | 244 | 1,096 | 1,096 | 852 | 244 | 1,096 | 1,096 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corinth Landing | 607 | 585 | 1,192 | 1,192 | 607 | 585 | 1,192 | 1,192 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coweta South Industrial Park | 532 | 477 | 1,009 | 1,009 | 532 | 477 | 1,009 | 1,009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fox Hall | 166 | 5,832 | 5,998 | 5,998 | 2007 | 166 | 2,233 | 2,399 | 2,399 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Genesee | 480 | 1,167 | 1,647 | 1,647 | 480 | 1,170 | 1,650 | 1,650 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TEXAS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bastrop County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hunter’s Crossing | 3,613 | 7,396 | 311 | 11,320 | 11,320 | 2001 | 2001 | 3,613 | 7,562 | 317 | 11,492 | 11,492 | 2001 | 2001 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Colony | 8,726 | 13,511 | 161 | 22,398 | 22,398 | 1999 | 1999 | 8,726 | 14,095 | 161 | 22,982 | 22,982 | 1999 | 1999 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bexar County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cibolo Canyons | 25,568 | 61,308 | 928 | 87,804 | 87,804 | 2004 | 1986 | 25,568 | 62,000 | 960 | 88,528 | 88,528 | 2004 | 1986 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calhoun County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Caracol | $ | 9,500 | 8,603 | 8,336 | 2,047 | 18,986 | 18,986 | 2006 | 2006 | $ | 8,217 | 8,603 | 8,865 | 2,047 | 19,515 | 19,515 | 2006 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Harbor Mist | 2,822 | 1,047 | 3,869 | 3,869 | 2007 | 2,822 | 1,164 | 3,986 | 3,986 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collin County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Light Farms | 33,533 | 30,101 | 20,902 | 51,003 | 51,003 | 2007 | 2007 | 34,366 | 30,101 | 21,237 | 51,338 | 51,338 | 2007 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maxwell Creek | 9,904 | (1,499 | ) | 418 | 8,823 | 8,823 | 2000 | 2000 | 9,904 | (2,031 | ) | 418 | 8,291 | 8,291 | 2000 | 2000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Gables at North Hill | 2,160 | (589 | ) | 63 | 1,634 | 1,634 | 2004 | 2001 | 2,160 | (692 | ) | 63 | 1,531 | 1,531 | 2004 | 2001 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Timber Creek | 3,431 | 7,282 | 2,593 | 9,875 | 9,875 | 2007 | 2007 | 3,431 | 7,282 | 2,929 | 10,211 | 10,211 | 2007 | 2007 |
S-1
Costs Capitalized | Costs Capitalized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to Acquisition | Subsequent to Acquisition | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Improvements | Gross Amount Carried at End of Period | Initial Cost to Company | Improvements | Gross Amount Carried at End of Period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Buildings & | Less Cost of | Carrying | Land & Land | Buildings & | Accumulated | Date of | Date | Buildings & | Less Cost of | Carrying | Land & Land | Buildings & | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Improvements | Sales and Other | Costs(a) | Improvements | Improvements | Total | Depreciation | Construction | Acquired | Encumbrances | Land | Improvements | Sales and Other | Costs(a) | Improvements | Improvements | Total | Depreciation | Construction | Acquired | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comal County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oak Creek Estates | 1,921 | 3,090 | 175 | 5,186 | 5,186 | 2006 | 2005 | 1,921 | 3,083 | 175 | 5,179 | 5,179 | 2006 | 2005 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dallas County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stoney Creek | 5,297 | 12,822 | 3,446 | 16,268 | 16,268 | 2007 | 2007 | 2,187 | 12,822 | 1,830 | 14,652 | 14,652 | 2007 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Denton County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lantana | 9,942 | 31,451 | 2,308 | 33,759 | 33,759 | 2000 | 1999 | 6,672 | 31,451 | 133 | 31,584 | 31,584 | 2000 | 1999 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Preserve at Pecan Creek | 5,855 | (387 | ) | 313 | 5,781 | 5,781 | 2006 | 2005 | 5,855 | (1,417 | ) | 313 | 4,751 | 4,751 | 2006 | 2005 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Harris County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
City Park | 3,946 | (2,530 | ) | 1,641 | 3,057 | 3,057 | 2002 | 2001 | 3,946 | (2,468 | ) | 1,641 | 3,119 | 3,119 | 2002 | 2001 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hays County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arrowhead Ranch | 12,856 | 1,560 | 14,416 | 14,416 | 2007 | 12,856 | 1,739 | 14,595 | 14,595 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hood County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Harbor Lakes | 3,514 | 5,080 | 312 | 8,906 | 8,906 | $ | (635 | ) | 2000 | 1998 | 3,514 | 411 | 312 | 4,237 | 4,237 | 2000 | 1998 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nueces County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tortuga Dunes | 12,080 | 10,530 | 22,610 | 22,610 | 2008 | 2006 | 12,080 | 10,813 | 22,893 | 22,893 | 2008 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rockwall County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Caruth Lakes | 1,624 | 3,278 | 100 | 5,002 | 5,002 | 1997 | 1996 | 1,624 | 2,279 | 100 | 4,003 | 4,003 | 1997 | 1996 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Travis County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Presidio at Judge’s Hill | 13,207 | 1,500 | 9,685 | 786 | 11,971 | 11,971 | 2006 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Ridge at Ribelin Ranch | 23,751 | (19,663 | ) | 51 | 4,139 | 4,139 | 2006 | 2006 | 23,751 | (19,301 | ) | 51 | 4,501 | 4,501 | 2006 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Williamson County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Westside at Buttercup Creek | 13,149 | (6,058 | ) | 449 | 7,540 | 7,540 | 1993 | 1993 | 13,149 | (7,319 | ) | 449 | 6,279 | 6,279 | 1993 | 1993 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chandler Road Properties | 3,552 | (2,826 | ) | 726 | 726 | 2004 | 2004 | 3,552 | (2,822 | ) | 730 | 730 | 2004 | 2004 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
La Conterra | 4,024 | 2,026 | 265 | 6,315 | 6,315 | 2008 | 2006 | 4,024 | 2,960 | 292 | 7,276 | 7,276 | 2008 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MISSOURI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Clay County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Somerbrook | 3,061 | (219 | ) | 13 | 2,855 | 2,855 | 2003 | 2001 | 3,061 | (219 | ) | 13 | 2,855 | 2,855 | 2003 | 2001 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UTAH | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weber County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fort Bingham Estates | 3,284 | (1,869 | ) | 88 | 1,503 | 1,503 | 2003 | 1998 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 21,017 | (12,052 | ) | 759 | 9,724 | 9,724 | 18,528 | (9,047 | ) | 790 | 10,271 | 10,271 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Entitled, Developed, and Under Development Projects | $ | 74,910 | $ | 290,920 | $ | — | $ | 127,059 | $ | 9,068 | $ | 427,047 | $ | — | $ | 427,047 | $ | (635 | ) | $ | 54,873 | $ | 283,647 | $ | — | $ | 111,122 | $ | 8,290 | $ | 403,059 | $ | — | $ | 403,059 | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
S-2
Costs Capitalized | ||||||||||||||||||||||||||||||||||||||||||||
Subsequent to Acquisition | ||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Improvements | Gross Amount Carried at End of Period | ||||||||||||||||||||||||||||||||||||||||||
Buildings & | Less Cost of | Carrying | Land & Land | Buildings & | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Improvements | Sales and Other | Costs(a) | Improvements | Improvements | Total | Depreciation | Construction | Acquired | |||||||||||||||||||||||||||||||||
Undeveloped Land: | ||||||||||||||||||||||||||||||||||||||||||||
ALABAMA | ||||||||||||||||||||||||||||||||||||||||||||
Cherokee County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | $ | 749 | $ | 16 | $ | 765 | $ | 765 | ||||||||||||||||||||||||||||||||||||
Cleburne County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 454 | 51 | 505 | 505 | ||||||||||||||||||||||||||||||||||||||||
CALIFORNIA | ||||||||||||||||||||||||||||||||||||||||||||
Los Angeles County | ||||||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 3,969 | 8,639 | 12,608 | 12,608 | 1997 | |||||||||||||||||||||||||||||||||||||||
GEORGIA | ||||||||||||||||||||||||||||||||||||||||||||
Banks County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 705 | 5 | 710 | 710 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 504 | 48 | 552 | 552 | ||||||||||||||||||||||||||||||||||||||||
Bartow County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 5,821 | 90 | 5,911 | 5,911 | ||||||||||||||||||||||||||||||||||||||||
Carroll County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 8,014 | 118 | 8,132 | 8,132 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 9,308 | 2,314 | 11,622 | 11,622 | ||||||||||||||||||||||||||||||||||||||||
Chattooga County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 679 | 43 | 722 | 722 | ||||||||||||||||||||||||||||||||||||||||
Cherokee County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 3,753 | 99 | 3,852 | 3,852 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 2,449 | 549 | 2,998 | 2,998 | ||||||||||||||||||||||||||||||||||||||||
Coweta County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 524 | 10 | 534 | 534 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 2,793 | 561 | 3,354 | 3,354 | ||||||||||||||||||||||||||||||||||||||||
Dawson County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 2,570 | 9 | 2,579 | 2,579 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 702 | 902 | 1,604 | 1,604 | ||||||||||||||||||||||||||||||||||||||||
Elbert County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 640 | 16 | 656 | 656 | ||||||||||||||||||||||||||||||||||||||||
Floyd County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 2,130 | 82 | 2,212 | 2,212 |
Costs Capitalized | ||||||||||||||||||||||||||||||||||||||||||||
Subsequent to Acquisition | ||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Improvements | Gross Amount Carried at End of Period | ||||||||||||||||||||||||||||||||||||||||||
Buildings & | Less Cost of | Carrying | Land & Land | Buildings & | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Improvements | Sales and Other | Costs(a) | Improvements | Improvements | Total | Depreciation | Construction | Acquired | |||||||||||||||||||||||||||||||||
Undeveloped Land: | ||||||||||||||||||||||||||||||||||||||||||||
ALABAMA | ||||||||||||||||||||||||||||||||||||||||||||
Cherokee County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | $ | 724 | $ | 16 | $ | 740 | $ | 740 | ||||||||||||||||||||||||||||||||||||
Cleburne County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 334 | 51 | 385 | 385 | ||||||||||||||||||||||||||||||||||||||||
CALIFORNIA | ||||||||||||||||||||||||||||||||||||||||||||
Los Angeles County | ||||||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 3,969 | 9,244 | 13,213 | 13,213 | 1997 | |||||||||||||||||||||||||||||||||||||||
GEORGIA | ||||||||||||||||||||||||||||||||||||||||||||
Banks County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 325 | 3 | 328 | 328 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 504 | 48 | 552 | 552 | ||||||||||||||||||||||||||||||||||||||||
Bartow County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 5,778 | 93 | 5,871 | 5,871 | ||||||||||||||||||||||||||||||||||||||||
Carroll County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 7,574 | 145 | 7,719 | 7,719 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 9,308 | 2,326 | 11,634 | 11,634 | ||||||||||||||||||||||||||||||||||||||||
Chattooga County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 618 | — | 618 | 618 | ||||||||||||||||||||||||||||||||||||||||
Cherokee County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 3,673 | 96 | 3,769 | 3,769 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 2,446 | 563 | 3,009 | 3,009 | ||||||||||||||||||||||||||||||||||||||||
Coweta County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 485 | 9 | 494 | 494 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 2,793 | 561 | 3,354 | 3,354 |
S-3
Costs Capitalized | ||||||||||||||||||||||||||||||||||||||||||||
Subsequent to Acquisition | ||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Improvements | Gross Amount Carried at End of Period | ||||||||||||||||||||||||||||||||||||||||||
Buildings & | Less Cost of | Carrying | Land & Land | Buildings & | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Improvements | Sales and Other | Costs(a) | Improvements | Improvements | Total | Depreciation | Construction | Acquired | |||||||||||||||||||||||||||||||||
Gilmer County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 3,031 | 35 | 3,066 | 3,066 | ||||||||||||||||||||||||||||||||||||||||
Gordon County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 1,779 | 11 | 1,790 | 1,790 | ||||||||||||||||||||||||||||||||||||||||
Hall County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 731 | 61 | 792 | 792 | ||||||||||||||||||||||||||||||||||||||||
Haralson County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 2,194 | 129 | 2,323 | 2,323 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 506 | 89 | 595 | 595 | ||||||||||||||||||||||||||||||||||||||||
Heard County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 1,443 | 412 | 1,855 | 1,855 | ||||||||||||||||||||||||||||||||||||||||
Jackson County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 969 | 64 | 1,033 | 1,033 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 491 | 246 | 737 | 737 | ||||||||||||||||||||||||||||||||||||||||
Lumpkin County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 3,120 | 4 | 3,124 | 3,124 | ||||||||||||||||||||||||||||||||||||||||
Paulding County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 1,406 | 61 | 1,467 | 1,467 | ||||||||||||||||||||||||||||||||||||||||
Pickens County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 3,378 | 43 | 3,421 | 3,421 | ||||||||||||||||||||||||||||||||||||||||
Polk County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 978 | 17 | 995 | 995 | ||||||||||||||||||||||||||||||||||||||||
TEXAS | ||||||||||||||||||||||||||||||||||||||||||||
Angelina County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 951 | 19 | 970 | 970 |
Forestar Group Inc. | ||||||||||||||||||||||||||||||||||||||||||||
Schedule III — Consolidated Real Estate and Accumulated Depreciation — (Continued) | ||||||||||||||||||||||||||||||||||||||||||||
Costs Capitalized | ||||||||||||||||||||||||||||||||||||||||||||
Subsequent to Acquisition | ||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Improvements | Gross Amount Carried at End of Period | ||||||||||||||||||||||||||||||||||||||||||
Buildings & | Less Cost of | Carrying | Land & Land | Buildings & | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Improvements | Sales and Other | Costs(a) | Improvements | Improvements | Total | Depreciation | Construction | Acquired | |||||||||||||||||||||||||||||||||
Dawson County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 2,375 | 9 | 2,384 | 2,384 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 702 | 913 | 1,615 | 1,615 | ||||||||||||||||||||||||||||||||||||||||
Elbert County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 376 | 14 | 390 | 390 | ||||||||||||||||||||||||||||||||||||||||
Floyd County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 1,305 | 78 | 1,383 | 1,383 | ||||||||||||||||||||||||||||||||||||||||
Gilmer County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 2,989 | 22 | 3,011 | 3,011 | ||||||||||||||||||||||||||||||||||||||||
Gordon County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 1,749 | 15 | 1,764 | 1,764 | ||||||||||||||||||||||||||||||||||||||||
Hall County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 600 | 48 | 648 | 648 | ||||||||||||||||||||||||||||||||||||||||
Haralson County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 1,285 | 83 | 1,368 | 1,368 | ||||||||||||||||||||||||||||||||||||||||
Land In Entitlement Process | 506 | 89 | 595 | 595 | ||||||||||||||||||||||||||||||||||||||||
Heard County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 1,408 | 216 | 1,624 | 1,624 | ||||||||||||||||||||||||||||||||||||||||
Jackson County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 970 | 62 | 1,032 | 1,032 | ||||||||||||||||||||||||||||||||||||||||
Lumpkin County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 3,120 | 5 | 3,125 | 3,125 | ||||||||||||||||||||||||||||||||||||||||
Paulding County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 1,406 | 217 | 1,623 | 1,623 | ||||||||||||||||||||||||||||||||||||||||
Pickens County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 3,378 | 43 | 3,421 | 3,421 | ||||||||||||||||||||||||||||||||||||||||
Polk County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 433 | 18 | 451 | 451 | ||||||||||||||||||||||||||||||||||||||||
TEXAS | ||||||||||||||||||||||||||||||||||||||||||||
Angelina County | ||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 1,024 | 19 | 1,043 | 1,043 |
S-4
Forestar Group Inc. | Forestar Group Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule III — Consolidated Real Estate and Accumulated Depreciation — (Continued) | Schedule III — Consolidated Real Estate and Accumulated Depreciation — (Continued) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs Capitalized | Costs Capitalized | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to Acquisition | Subsequent to Acquisition | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Improvements | Gross Amount Carried at End of Period | Initial Cost to Company | Improvements | Gross Amount Carried at End of Period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Buildings & | Less Cost of | Carrying | Land & Land | Buildings & | Accumulated | Date of | Date | Buildings & | Less Cost of | Carrying | Land & Land | Buildings & | Accumulated | Date of | Date | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Improvements | Sales and Other | Costs(a) | Improvements | Improvements | Total | Depreciation | Construction | Acquired | Encumbrances | Land | Improvements | Sales and Other | Costs(a) | Improvements | Improvements | Total | Depreciation | Construction | Acquired | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hardin County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 871 | 2 | 873 | 873 | 863 | 2 | 865 | 865 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Harris County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Land in Entitlement Process | 685 | 853 | 1,538 | 1,538 | 685 | 883 | 1,568 | 1,568 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liberty County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 662 | 25 | 687 | 687 | 662 | 25 | 687 | 687 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Montgomery County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Land in Entitlement Process | 2,675 | 152 | 2,827 | 2,827 | 2007 | 2,675 | (1,475 | ) | 1,200 | 1,200 | 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
San Augustine County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 1,085 | 1,085 | 1,085 | 1,630 | 1,630 | 1,630 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Undeveloped Land | 2,309 | 208 | 2,517 | 2,517 | 1,902 | 1,593 | 3,495 | 3,495 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Undeveloped Land | $ | — | $ | 75,028 | $ | — | $ | 15,983 | $ | — | $ | 91,011 | $ | — | $ | 91,011 | $ | — | $ | — | $ | 70,574 | $ | — | $ | 16,034 | $ | — | $ | 86,608 | $ | — | $ | 86,608 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Operating Properties: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Producing Properties: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TEXAS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Harris County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Broadstone Memorial | $ | 26,500 | $ | 4,701 | $ | 43,323 | $ | 4,701 | $ | 43,323 | $ | 48,024 | 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Travis County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Radisson Hotel & Suites | $ | 16,716 | $ | 16,316 | $ | 31,586 | $ | 47,902 | $ | 47,902 | $ | (23,417 | ) | 15,216 | 16,316 | $ | 28,676 | 44,992 | 44,992 | $ | (22,308 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hood County | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Harbor Lakes Golf Club | 1,269 | 1,269 | 1,269 | (365 | ) | 2000 | 1998 | 1,447 | 1,500 | 2,947 | 2,947 | (1,130 | ) | 2000 | 1998 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Commercial Operating Properties | $ | 16,716 | $ | — | $ | 17,585 | $ | 31,586 | $ | — | $ | — | $ | 49,171 | $ | 49,171 | $ | (23,782 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Income Producing Properties | $ | 41,716 | $ | 4,701 | $ | 61,086 | $ | 30,176 | $ | — | $ | 4,701 | $ | 91,262 | $ | 95,963 | $ | (23,438 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 91,626 | $ | 365,948 | $ | 17,585 | $ | 174,628 | $ | 9,068 | $ | 518,058 | $ | 49,171 | $ | 567,229 | $ | (24,417 | ) | $ | 96,589 | $ | 358,922 | $ | 61,086 | $ | 157,332 | $ | 8,290 | $ | 494,368 | $ | 91,262 | $ | 585,630 | $ | (23,438 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(a) | We do not capitalize carrying costs until development begins. |
S-5
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Balance at beginning of year | $ | 633,130 | $ | 572,984 | $ | 468,724 | $ | 567,229 | $ | 633,130 | $ | 572,984 | ||||||||||||
Amounts capitalized | 38,971 | 100,639 | 181,430 | 65,564 | 38,971 | 100,639 | ||||||||||||||||||
Amounts retired or adjusted | (104,872 | ) | (40,493 | ) | (77,170 | ) | (47,163 | ) | (104,872 | ) | (40,493 | ) | ||||||||||||
Balance at close of period | $ | 567,229 | $ | 633,130 | $ | 572,984 | $ | 585,630 | $ | 567,229 | $ | 633,130 | ||||||||||||
2009 | 2008 | 2007 | 2010 | 2009 | 2008 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Balance at beginning of year | $ | (22,544 | ) | $ | (20,774 | ) | $ | (20,907 | ) | $ | (24,417 | ) | $ | (22,544 | ) | $ | (20,774 | ) | ||||||
Depreciation expense | (1,873 | ) | (1,770 | ) | (2,014 | ) | (2,582 | ) | (1,873 | ) | (1,770 | ) | ||||||||||||
Amounts retired or adjusted | — | — | 2,147 | 3,561 | — | — | ||||||||||||||||||
Balance at close of period | $ | (24,417 | ) | $ | (22,544 | ) | $ | (20,774 | ) | $ | (23,438 | ) | $ | (24,417 | ) | $ | (22,544 | ) | ||||||
S-6