View Filing Data

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2011	Feb. 25, 2012	Jun. 30, 2011
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Trading Symbol	TRC
Entity Registrant Name	TEJON RANCH CO
Entity Central Index Key	0000096869
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		19,987,559
Entity Public Float			$ 676,984,299

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 18,372	$ 22,027
Marketable securities	68,566	48,985
Accounts receivable	7,832	9,812
Inventories	3,587	2,982
Prepaid expenses and other current assets	4,317	5,011
Deferred tax assets	1,099
Total current assets	103,773	88,817
Property and equipment, net	128,430	117,275
Investments in unconsolidated joint ventures	53,893	48,302
Long-term water assets	28,336	28,774
Long-term deferred tax assets	6,845	3,985
Other assets	699	938
Total assets	321,976	288,091
Current liabilities:
Trade accounts payable	2,447	2,187
Other accrued liabilities	3,074	1,334
Income taxes	2,484
Deferred income	2,125	601
Current portion of long-term debt	37	35
Total current liabilities	10,167	4,157
Long-term debt, less current portion	253	290
Long-term deferred gains	2,664	2,277
Other liabilities	5,474	3,196
Pension liability	2,979	1,519
Commitments and contingencies
Tejon Ranch Co. stockholders' equity
Common stock, $.50 par value per share: Authorized shares - 30,000,000 Issued and outstanding shares - 19,975,706 in 2011 and 19,747,470 in 2010	9,988	9,874
Additional paid-in capital	194,273	183,816
Accumulated other comprehensive loss	(4,756)	(2,191)
Retained Earnings	61,109	45,215
Tejon Ranch Co.'s stockholders' equity	260,614	236,714
Noncontrolling interest	39,825	39,938
Total equity	300,439	276,652
Total liabilities and equity	$ 321,976	$ 288,091

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2011	Dec. 31, 2010
Common stock, par value	$ 0.50	$ 0.50
Common stock, Authorized shares	30,000,000	30,000,000
Common stock, Issued shares	19,975,706	19,747,470
Common stock, outstanding shares	19,975,706	19,747,470

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenues:
Revenue	$ 63,098	$ 35,513	$ 28,251
Costs and expenses:
Costs and Expenses	42,224	30,274	36,027
Operating income (loss)	20,874	5,239	(7,776)
Other income (expense):
Investment income	1,260	979	1,640
Other	98	61	45
Interest expense		(9)	(70)
Total other income	1,358	1,031	1,615
Income (loss) from operations before equity in earnings of unconsolidated joint ventures	22,232	6,270	(6,161)
Equity in earnings of unconsolidated joint ventures, net	916	541	374
Income (loss) before income taxes	23,148	6,811	(5,787)
Income tax provision (benefit)	7,367	2,852	(2,354)
Net income (loss)	15,781	3,959	(3,433)
Net loss attributable to noncontrolling interests	(113)	(216)	(56)
Net income (loss) attributable to common stockholders	$ 15,894	$ 4,175	$ (3,377)
Net income (loss) attributable to common stockholders
Basic	$ 0.80	$ 0.23	$ (0.19)
Diluted	$ 0.80	$ 0.22	$ (0.19)
Real estate - commercial/industrial
Revenues:
Revenue	$ 25,952	$ 16,656	$ 14,996
Costs and expenses:
Costs and Expenses	13,430	10,659	12,469
Real estate- resort/residential
Revenues:
Revenue	16,134	281	272
Costs and expenses:
Costs and Expenses	3,942	3,089	4,443
Farming
Revenues:
Revenue	21,012	18,576	12,983
Costs and expenses:
Costs and Expenses	12,575	10,914	11,804
Corporate
Costs and expenses:
Costs and Expenses	$ 12,277	$ 5,612	$ 7,311

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Net income (loss)	$ 15,781	$ 3,959	$ (3,433)
Other comprehensive income (loss):
Unrealized gains (losses) on a available for sale securities	(82)	(3)	1,874
Benefit plan adjustments	(2,574)	(505)	(573)
SERP liability adjustment	(1,825)	578	110
Equity in other comprehensive income of unconsolidated joint venture	217	(108)	(256)
Other comprehensive income (loss) before taxes	(4,264)	(38)	1,155
Provisions for income taxes related to other comprehensive income (loss) items	1,699	(2)	(509)
Other comprehensive income (loss)	(2,565)	(40)	646
Comprehensive income (loss)	13,216	3,919	(2,787)
Comprehensive income (loss) attributable to non-controlling interests	113	216	56
Comprehensive income (loss) attributable to common stockholders	$ 13,329	$ 4,135	$ (2,731)

Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Total Tejon Ranch Co.'s Stockholders' Equity	Non-controlling Interest
Beginning Balance (in shares) at Dec. 31, 2008		16,986,770
Beginning Balance at Dec. 31, 2008	$ 173,306	$ 8,493	$ 123,193	$ (2,797)	$ 44,417	$ 173,306
Net income (loss)	(3,433)				(3,377)	(3,377)	$ (56)
Changes in unrealized losses on available-for-sale securities, net of taxes of $33 for 2011, $1 for 2010 and $746 for 2009	1,128			1,128		1,128
Benefit plan adjustments, net of taxes of $1,026 for 2011, $206 for 2010 and $179 for 2009	(394)			(394)		(394)
SERP liability adjustment, net of taxes $727 for 2011, $248 for 2010 and $44 for 2009	66			66		66
Equity in other comprehensive income of unconsolidated joint venture, net of taxes of $87 for 2011, $39 for 2010 and $102 for 2009	(154)			(154)		(154)
Exercise of stock options tax benefit of $634 for 2011, $204 for 2010 and no related tax benefit for 2009 (in shares)		11,858
Exercise of stock options tax benefit of $634 for 2011, $204 for 2010 and no related tax benefit for 2009	241	$ 6	235			241
Restricted stock issuance (in shares)		26,636
Restricted stock issuance		$ 13	(13)
Stock compensation	3,557		3,557			3,557
Shares withheld for taxes (in shares)		(5,836)
Shares withheld for taxes	(146)	$ (3)	(143)			(146)
Noncontrolling interest	40,210						40,210
Ending Balance (in shares) at Dec. 31, 2009		17,019,428
Ending Balance at Dec. 31, 2009	214,381	$ 8,509	126,829	(2,151)	41,040	174,227	40,154
Net income (loss)	3,959				4,175	4,175	(216)
Changes in unrealized losses on available-for-sale securities, net of taxes of $33 for 2011, $1 for 2010 and $746 for 2009	(2)			(2)		(2)
Benefit plan adjustments, net of taxes of $1,026 for 2011, $206 for 2010 and $179 for 2009	(299)			(299)		(299)
SERP liability adjustment, net of taxes $727 for 2011, $248 for 2010 and $44 for 2009	330			330		330
Equity in other comprehensive income of unconsolidated joint venture, net of taxes of $87 for 2011, $39 for 2010 and $102 for 2009	(69)			(69)		(69)
Rights Offering, net expenses (in shares)		2,608,735
Rights Offering, net expenses	59,760	$ 1,306	58,454			59,760
Exercise of stock options tax benefit of $634 for 2011, $204 for 2010 and no related tax benefit for 2009 (in shares)		78,894
Exercise of stock options tax benefit of $634 for 2011, $204 for 2010 and no related tax benefit for 2009	1,999	$ 39	1,960			1,999
Restricted stock issuance (in shares)		56,131
Restricted stock issuance		$ 28	(28)
Stock compensation	(2,944)		(2,944)			(2,944)
Shares withheld for taxes (in shares)		(15,718)
Shares withheld for taxes	(463)	$ (8)	(455)			(463)
Ending Balance (in shares) at Dec. 31, 2010		19,747,470
Ending Balance at Dec. 31, 2010	276,652	$ 9,874	183,816	(2,191)	45,215	236,714	39,938
Net income (loss)	15,781				15,894	15,894	(113)
Changes in unrealized losses on available-for-sale securities, net of taxes of $33 for 2011, $1 for 2010 and $746 for 2009	(49)			(49)		(49)
Benefit plan adjustments, net of taxes of $1,026 for 2011, $206 for 2010 and $179 for 2009	(1,548)			(1,548)		(1,548)
SERP liability adjustment, net of taxes $727 for 2011, $248 for 2010 and $44 for 2009	(1,098)			(1,098)		(1,098)
Equity in other comprehensive income of unconsolidated joint venture, net of taxes of $87 for 2011, $39 for 2010 and $102 for 2009	130			130		130
Exercise of stock options tax benefit of $634 for 2011, $204 for 2010 and no related tax benefit for 2009 (in shares)		205,165
Exercise of stock options tax benefit of $634 for 2011, $204 for 2010 and no related tax benefit for 2009	5,876	$ 103	5,773			5,876
Restricted stock issuance (in shares)		52,069
Restricted stock issuance		$ 26	(26)
Stock compensation	5,507		5,507			5,507
Shares withheld for taxes (in shares)		(28,998)
Shares withheld for taxes	(812)	$ (15)	(797)			(812)
Ending Balance (in shares) at Dec. 31, 2011		19,975,706
Ending Balance at Dec. 31, 2011	$ 300,439	$ 9,988	$ 194,273	$ (4,756)	$ 61,109	$ 260,614	$ 39,825

Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Changes in unrealized losses on available-for-sale securities, taxes	$ 33	$ 1	$ 746
Benefit plan adjustments, taxes	1,026	206	179
SERP liability adjustment, taxes	727	248	44
Equity in other comprehensive income of unconsolidated joint venture, taxes	87	39	$ 102
Exercise of stock options, tax benefit	$ 634	$ 204

- Definition

The tax effect of the amount of the change in the additional minimum pension liability not yet recognized pursuant to FAS 87 as a net periodic pension cost. If the additional pension liability required to be recognized exceeds the unrecognized prior service costs, then the excess (which is the net loss not yet recognized as net periodic pension cost) is to be recorded as a separate component in other comprehensive income, before adjusting for tax effects. In a subsequent measurement, the elimination or adjustment to the amount of the minimum pension liability recorded in accumulated other comprehensive income is included in this line. Eliminated upon adoption of FAS 158.

+ References + Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating Activities
Net income (loss)	$ 15,781	$ 3,959	$ (3,433)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	4,270	2,317	3,122
Deferred income taxes	(162)	(1,351)	(1,072)
Gain from sale of real estate	(4,058)	(559)
Gain from sale of easements	(15,750)
Non-cash straight line rent income	60	145	153
Non-cash expense of retirement plans	528	800	900
(Gain) loss on sales of assets/investments			(114)
Fair market value adjustments			113
Equity in (earnings) losses of unconsolidated joint ventures, net	(916)	(541)	(374)
Pension funding over expense
Amortization of stock compensation expense (reversal)	5,340	(2,944)	3,557
Excess tax benefit from stock-based compensation	(634)	(227)
Abandonment expense			662
Distribution of earnings from joint ventures		1,440
Changes in current assets and current liabilities:
Receivable, inventories, and other current assets	2,510	(201)	(135)
Current Liabilities, net	2,515	361	(2,018)
Net cash provided by operating activities	9,484	3,199	1,361
Investing Activities
Maturities of marketable securities	19,143	15,720	38,400
Funds invested in marketable securities	(39,448)	(34,751)	(14,876)
Proceeds from sale of real estate	4,988	604
Proceeds from sale of easements	15,750
Distribution of equity from joint ventures		4,100	1,866
Property and equipment expenditures	(13,649)	(14,196)	(20,925)
Investments in long-term water assets		(11,981)	(3,899)
Investment in unconsolidated joint ventures	(4,457)	(4,594)	(12,837)
Other	(495)	(943)	(1,159)
Net cash used in investing activities	(18,168)	(33,568)	(11,423)
Financing Activities
Payments on short-term debt		(16,400)	(10,500)
Borrowing of short-term debt		6,850	17,300
Repayment of long-term debt	(35)	(33)	(30)
Net proceeds from rights offering		59,760
Excess tax benefit from stock-based compensation
Exercise of stock options	5,876	1,999	241
Taxes on vested stock grant	(812)	(463)	(146)
Net cash provided by financing activities	5,029	51,713	6,865
Increase (decrease) in cash and cash equivalents	(3,655)	21,344	(3,197)
Cash and cash equivalents at beginning of year	22,027	683	3,880
Cash and cash equivalents at end of year	18,372	22,027	683
Supplemental Cash Flow Information
Interest paid (net of amounts capitalized)		9	70
Taxes paid (net of refunds)	$ 5,002	875	(661)
Kern County - Laval Interchange
Investing Activities
Reimbursement proceeds		1,613
Community Facilities District
Investing Activities
Reimbursement proceeds		$ 10,860	$ 2,007

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2011

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The consolidated financial statements include the accounts of Tejon Ranch Co. and the accounts of all subsidiaries and investments in which a controlling interest is held by Tejon Ranch Co., or the Company. All significant intercompany transactions have been eliminated in consolidation.

Cash Equivalents

The Company considers all highly liquid investments with maturities of three months or less when purchased, to be cash equivalents. The carrying amount for cash equivalents approximates fair value.

Marketable Securities

The Company considers those investments not qualifying as cash equivalents, but which are readily marketable, to be marketable securities. The Company classifies all marketable securities as available-for-sale. These are stated at fair value with the unrealized gains (losses), net of tax, reported as a component of accumulated other comprehensive income (loss) in the consolidated statements of equity.

Investments in Unconsolidated Joint Ventures

Investments in unconsolidated joint ventures in which the Company does not have a controlling interest, or is not the primary beneficiary if the joint venture is determined to be a variable interest entity under Accounting Standards Codification 810 – “Consolidation,” are accounted for under the equity method of accounting and, accordingly, are adjusted for capital contributions, distributions, and the Company’s equity in net earnings or loss of the respective joint venture.

Fair Values of Financial Instruments

The Company follows the FASB’s authoritative guidance for fair value measurements of certain financial instruments. The guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined as the exchange (exit) price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This guidance establishes a three-level hierarchy for fair value measurements based upon the inputs to the valuation of an asset or liability. Observable inputs are those which can be easily seen by market participants while unobservable inputs are generally developed internally, utilizing management’s estimates and assumptions:

•

Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities.

•

Level 2 – Valuation is determined from quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active, or by model-based techniques in which all significant inputs are observable in the market.

•

Level 3 – Valuation is derived from model-based techniques in which at least one significant input is unobservable and based on our own estimates about the assumptions that market participants would use to value the asset or liability.

When available, we use quoted market prices in active markets to determine fair value. We consider the principal market and nonperformance risk associated with our counterparties when determining the fair value measurement. Fair value measurements are used for marketable securities, investments within the pension plan and hedging instruments.

During 2011, the Company changed how it categorizes amounts within the fair value hierarchy and thus, the amounts now reported as level 2 fair value instruments at December 31, 2010 were previously shown as level 1 and have been reclassified.

Credit Risk

The Company grants credit in the course of operations to co-ops, wineries, nut marketing companies, and lessees of the Company’s facilities. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. Accounts receivable are stated at their estimated fair values in the consolidated balance sheets.

In 2011 and 2010, Stockdale Oil and Gas, an oil and gas leaseholder, accounted for 12% and 11%, respectively, of our revenues from continuing operations. In 2009 Calpine, a tenant who leases land for a power plant, accounted for 12% of the Company’s revenues.

The Company maintains its cash and cash equivalents in federally insured financial institutions. The account balances at these institutions periodically exceed FDIC insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes that the risk is not significant.

Farm Inventories

Costs of bringing crops to harvest are inventoried when incurred. Such costs are expensed when the crops are sold. Expenses are computed and recognized on an average cost per pound or per ton basis, as appropriate. Costs during the current year related to the next year’s crop are inventoried and carried in inventory until the matching crop is harvested and sold. Farm inventories held for sale are valued at the lower of cost (first-in, first-out method) or market.

Property and Equipment

Property and equipment are stated on the basis of cost, except for land acquired upon organization in 1936, which is stated on the basis (presumed to be at cost) carried by the Company’s predecessor. Depreciation is computed using the straight-line method over the estimated useful lives of the various assets. Buildings and improvements are depreciated over a 10-year to 27.5-year life. Machinery, water pipelines, furniture, fixtures, and other equipment are depreciated over a three-year to 10-year life depending on the type of asset. Vineyards and orchards are generally depreciated over a 20-year life with irrigation systems over a 10-year life. Oil, gas and mineral reserves have not been appraised, and accordingly no value has been assigned to them.

Long Term Water Assets

Long-term purchased water contracts are in place with the Tulare Lake Basin Water Storage District and the Dudley Ridge Water Storage District. These contracts provide the Company with the right to receive water over the term of the contracts that expire in 2035. The purchase price of these contracts is being amortized on the straight-line basis over their contractual life. Water contracts with the Wheeler Ridge Maricopa Water Storage District and the Tejon-Castac Water District are also in place, but were entered into with each district at inception and not purchased later from third parties, and do not have a related financial value on the books of the Company. Therefore there is no amortization expense related to these contracts.

Vineyards and Orchards

Costs of planting and developing vineyards and orchards are capitalized until the crops become commercially productive. Interest costs and depreciation of irrigation systems and trellis installations during the development stage are also capitalized. Revenues from crops earned during the development stage are netted against development costs. Depreciation commences when the crops become commercially productive.

At the time farm crops are harvested, contracted, and delivered to buyers and revenues can be estimated, revenues are recognized and any related inventoried costs are expensed, which traditionally occurs during the third and fourth quarters of each year. It is not unusual for portions of our almond crop to be sold in the year following the harvest. Orchard (almond and pistachio) revenues are based upon the contract settlement price or estimated selling price, whereas vineyard revenues are typically recognized at the contracted selling price. Estimated prices for orchard crops are based upon the quoted estimate of what the final market price will be by marketers and handlers of the orchard crops. These market price estimates are updated through the crop payment cycle as new information is received as to the final settlement price for the crop sold. These estimates are adjusted to actual upon receipt of final payment for the crop. This method of recognizing revenues on the sale of orchard crops is a standard practice within the agribusiness community. Adjustments for differences between original estimates and actual revenues received are recorded during the period in which such amounts become known. The net effect of these adjustments increased farming revenue by $1,882,000 in 2011, $1,144,000 in 2010, and $579,000 in 2009. The adjustment for 2011 includes $1,335,000 related to pistachios due to improving prices related to an aggressive industry marketing campaign, it also includes $531,000 from almonds due to increased demand which pushed almond prices higher. The adjustment for 2010 includes $823,000 related to pistachios due to an improving price market resulting from low industry inventories, and $287,000 from almonds as increased demand pushed prices higher. The adjustment in 2009 was due to $252,000 in additional bonus payments and price adjustments on pistachios and $327,000 in adjustments related to almonds as prices continued to increase prior to the contract settlement.

The Almond Board of California has the authority to require producers of almonds to withhold a portion of their annual production from the marketplace through a marketing order approved by the Secretary of Agriculture. At December 31, 2011, 2010, and 2009, no such withholding was mandated.

Common Stock Options and Grants

The Company follows ASC 718, “Compensation – Stock Compensation” in accounting for stock incentive plans using the fair value method of accounting.

The estimated fair value of the restricted stock grants and restricted stock units are expensed over the expected vesting period. For performance based grants the Company makes estimates of the number of shares that will actually be granted based upon estimated ranges of success in meeting defined performance measures. Each year the Company updates its estimates and reflects any changes to the estimate in the statements of operations.

Net Income (Loss) Per Share

Basic net income (loss) per share attributable to common stockholders is based upon the weighted-average number of shares of common stock outstanding during the year, (19,890,838 in 2011, 18,515,958 in 2010, and 17,459,293 in 2009). Diluted net income (loss) per share attributable to common stockholders is based upon the weighted-average number of shares of common stock outstanding and the weighted-average number of shares outstanding assuming the issuance of common stock upon exercise of stock options and the vesting of restricted stock grants per ASC 260, “Earnings Per Share”, (19,955,260 in 2011, 18,571,307 in 2010, and 17,554,384 in 2009). The weighted-average additional number of shares relating to dilutive stock options and grants was 64,422, in 2011, 55,349 in 2010, and 95,091 in 2009. For 2009, diluted net loss per share from continuing operations is based on the weighted-average number of shares of common stock outstanding because the impact of stock options and unvested stock grants is antidilutive.

Long-Lived Assets

In accordance with ASC 360 “Property, Plant, and Equipment” the Company records impairment losses on long-lived assets held and used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their related carrying amounts. In addition, the Company accounts for long-lived assets to be disposed of at the lower of their carrying amounts or fair value less selling and disposal costs. At December 31, 2011 and 2010, management of the Company believes that none of its assets are impaired.

Sales of Real Estate

In recognizing revenue from land sales, the Company follows the provisions in ASC 976 “Real Estate – Retail Land” to record these sales. ASC 976 provides specific sales recognition criteria to determine when land sales revenue can be recorded. For example, ASC 976 requires a land sale to be consummated with a sufficient down payment of at least 20% to 25% of the sales price depending upon the type and timeframe for development of the property sold, and that any receivable from the sale cannot be subject to future subordination. In addition, the seller cannot retain any material continuing involvement in the property sold, or be required to develop the property in the future or construct facilities or off-site improvements.

Allocation of Costs Related to Land Sales and Leases

When the Company sells land within one of its real estate developments and has not completed all infrastructure development related to the total project, the Company follows ASC 976 “Real Estate – Retail Land” to determine the appropriate costs of sales for the sold land and the timing of recognition of the sale. In the calculation of cost of sales or allocations to leased land, the Company uses estimates and forecasts to determine total costs at completion of the development project. These estimates of final development costs can change as conditions in the market change and costs of construction change.

Royalty Income

Royalty revenues are contractually defined as to the percentage of royalty and are tied to production and market prices. The Company’s royalty arrangements generally require payment on a monthly basis with the payment based on the previous month’s activity. The Company accrues monthly royalty revenues based upon estimates and adjusts to actual as the Company receives payments. Oil and gas royalty percentages averaged approximately 13% in 2011.

Rental Income

Minimum rent revenues are generally recognized on a straight-line basis over the respective initial lease term unless there is considerable risk as to collectability.

Environmental Expenditures

Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and which do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable and the costs can be reasonably estimated. Generally, the timing of these accruals coincides with the completion of a feasibility study or the Company’s commitment to a formal plan of action. No liabilities for environmental costs have been recorded at December 31, 2011 or 2010.

Use of Estimates

The preparation of the Company’s consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the financial statement dates and the reported amounts of revenue and expenses during the reporting period. Due to uncertainties inherent in the estimation process, it is reasonably possible that actual results could differ from these estimates.

New Accounting Standards

In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. This ASU requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income, or in two separate but consecutive statements. This ASU eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, which for us means the first quarter of 2012. In December 2011, the FASB issued ASU No. 2011-12 which effectively deferred those changes in Update 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the FASB time to redeliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private, and non-profit entities. We adopted ASU 2011-05 during the fourth quarter of 2011, and it did not have a material effect on our financial position or results of operations, as it only affects presentation.

MARKETABLE SECURITIES

12 Months Ended

Dec. 31, 2011

MARKETABLE SECURITIES

2.	MARKETABLE SECURITIES

ASC 320 “Investments – Debt and Equity Securities” requires that an enterprise classify all debt securities as either held-to-maturity, trading or available-for-sale. The Company has elected to classify its securities as available-for-sale and therefore is required to adjust securities to fair value at each reporting date. All costs and both realized and unrealized gains and losses on securities are determined on a specific identification basis.

The following is a summary of available-for-sale securities at December 31:


			2011				2010
($ in thousands)	Fair Value Hierarchy		Cost		Fair Value		Cost		Estimated Fair Value
Marketable Securities:
Certificates of deposit
with unrecognized losses for less than 12 months			$	3,646	$	3,605	$	1,040	$	1,034
with unrecognized gains				3,525		3,551		4,338		4,392

Total Certificates of deposit		Level 1		7,171		7,156		5,378		5,426

US Treasury and agency notes
with unrecognized losses for less than 12 months				4,352		4,338		12,500		12,441
with unrecognized losses for more than 12 months				1,002		1,000		124		124

with unrecognized gains				16,479		16,660		7,211		7,342

Total US Treasury and agency notes		Level 2		21,833		21,998		19,835		19,907
Corporate notes
with unrecognized losses for less than 12 months				9,230		9,098		5,135		5,077
with unrecognized losses for more than 12 months				1,539		1,494		—		—
with unrecognized gains				19,369		19,738		12,526		12,952

Total Corporate notes		Level 2		30,138		30,330		17,661		18,029

Municipal notes
with unrecognized losses for less than 12 months				1,177		1,165		2,588		2,543

with unrecognized losses for more than 12 months				881		873		—		—

with unrecognized gains				6,964		7,044		3,038		3,080

Total Municipal notes		Level 2		9,022		9,082		5,626		5,623

			$	68,164	$	68,566	$	48,500	$	48,985

At December 31, 2011 and 2010, the carrying value of cash and cash equivalents approximated market value.

The Company follows the provisions of ASC 320 “Investments – Debt and Equity Securities” which amended the recognition requirements for other-than-temporary impairment for debt securities. We evaluate our securities for other-than-temporary impairment based on the specific facts and circumstances surrounding each security valued below its cost. Factors considered include the length of time the securities have been valued below cost, the financial condition of the issuer, industry reports related to the issuer, the severity of any decline, our intention not to sell the security, and our assessment as to whether it is not more likely than not that we will be required to sell the security before a recovery of its amortized cost basis. We then segregate the loss between the amounts representing a decrease in cash flows expected to be collected, or the credit loss, which is recognized through earnings, and the balance of the loss, which is recognized through other comprehensive income.

At December 31, 2011, the fair market value of investment securities exceeded the cost basis by $402,000. The cost basis includes any other-than-temporary impairments that have been recorded for the securities. During 2011 and 2010, no other-than-temporary impairments were recorded. In the future based on changes in the economy, credit markets, financial condition of issuers, or market interest rates, this could change.

For the year ended December 31, 2009, we recognized $113,000 of impairment losses in our statement of operations. These impaired securities were subsequently sold during 2009 at a gain, which fully offset the previously recognized impairment losses.

As of December 31, 2011, the adjustment to accumulated other comprehensive income (loss) in consolidated equity for the temporary change in the value of securities reflects decrease in the market value of available-for-sale securities of $49,000, which is net of taxes of $34,000.

As of December 31, 2011, the Company’s gross unrealized holding gains equal $655,000 and gross unrealized holding losses equal $253,000. On December 31, 2011, the average maturity of certificates of deposits was 2.8 years, the average maturity of U.S. Treasury and agency securities was 2.1 years, the average maturity of corporate notes was 2.6 years and the average maturity of municipal notes was 2.7 years. Currently, the Company has no securities with a remaining term to maturity of greater than four years.

The following table summarizes the maturities, at par, of marketable securities by year ($ in thousands):


At December 31, 2011	2012		2013		2014		2015		2016		Total
Certificates of deposit	$	1,536	$	1,255	$	1,627	$	2,526	$	—	$	6,944
U.S. Treasury and agency notes		4,734		10,285		5,856		936		—	$	21,811
Corporate notes		3,450		11,231		8,923		5,584		—	$	29,188
Municipal notes		860		2,505		4,145		1,160		—	$	8,670

	$	10,580	$	25,276	$	20,551	$	10,206	$	—	$	66,613


At December 31, 2010	2011		2012		2013		2014		2015		Total
Certificates of deposit	$	2,234	$	1,547	$	1,168	$	286	$	—	$	5,235
U.S. Treasury and agency notes		3,516		4,734		8,535		1,969		980	$	19,734
Corporate notes		3,203		3,200		7,348		2,804		600	$	17,155
Municipal notes		930		910		1,750		1,840		—	$	5,430

	$	9,883	$	10,391	$	18,801	$	6,899	$	1,580	$	47,554

The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s.

INVENTORIES

12 Months Ended

Dec. 31, 2011

INVENTORIES

3.	INVENTORIES

Inventories consist of the following at December 31:


($ in thousands)	2011		2010
Farming inventories	$	3,423	$	2,801
Other		164		181

		$ 3,587		$ 2,982

Farming inventories consist of costs incurred during the current year related to the next year’s crop as well as any current year’s unsold product and farming chemicals.

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2011

PROPERTY AND EQUIPMENT

4.	PROPERTY AND EQUIPMENT

Property and equipment, net, consists of the following at December 31:


($ in thousands)	2011			2010
Land and land improvements	$	14,385		$	14,154
Buildings and improvements		12,209			10,420
Machinery, water pipelines, furniture fixtures and other equipment		11,828			11,269
Vineyards and orchards		35,749			35,400
Development in process		94,659			84,078

		168,830			155,321
Less accumulated depreciation		(40,400	)		(38,046	)

	$	128,430		$	117,275

During 2011, we recognized $4,340,000 of revenue and $4,058,000 gain related to a land sale of $4,988,000 that closed in December 2011 and deferred $648,000 of revenue to 2012 when offsite infrastructure related to the land sale will be completed. We fully recognized the revenues from all land sales in 2010, as none of the requirements for deferral of revenue were present. There were no land sales in 2009.

The Company received $10,860,000 in 2010 and $2,007,000 in 2009 of reimbursement from the Community Facilities District bond fund. The Company received no reimbursements during 2011. These proceeds were for public infrastructure improvements the Company had constructed related to the Tejon Ranch Commerce Center and were reflected as a reduction to development in process.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

LONG-TERM WATER ASSETS

12 Months Ended

Dec. 31, 2011

LONG-TERM WATER ASSETS

5.	LONG-TERM WATER ASSETS

Long-term assets consist of water and water contracts held for future use or sale. 6,700 acre-feet of water are currently held in a water bank on Company land in southern Kern County. The water is held at cost, which includes the price paid for the water and the cost to pump and deliver the water from the California aqueduct into the water bank. This amount also includes the right to receive an additional 2,362 acre feet of water in the future from Antelope Valley East Kern Water Agency as well as an approximate 8,900 acre feet of water in AVEK’s water bank. An additional 14,786 acre-feet of transferable water purchased for $8,985,000 is owned by the Company. The Company holds State Water Project, or SWP, contracts for 3,444 acre-feet of water with the Tulare Water Storage District and the Dudley-Ridge Water Storage District to supply water through 2035. These purchased contracts are being amortized using the straight-line method over that period. Annual amortization for the next five years will be $708,000 per year. Water assets consist of the following at December 31:


($ in thousands)	2011			2010
Banked water and water for future delivery	$	3,546		$	2,600
Transferable water		8,988			8,985
SWP Contracts (net of accumulated amortization of $1,317,000 and $378,000 at December 31, 2011 and 2010, respectively)		16,510			17,189

Total water assets		29,044			28,774
Less: current portion		(708	)		—

Long-term water assets	$	28,366		$	28,774

SHORT-TERM AND LONG-TERM DEBT

12 Months Ended

Dec. 31, 2011

SHORT-TERM AND LONG-TERM DEBT

6.	SHORT-TERM AND LONG-TERM DEBT

The Company had no outstanding balance on its line of credit at December 31, 2011 and December 31, 2010.

Long-term debt consists of the following at December 31:


($ in thousands)	2011			2010
Note payable to a bank	$	290		$	325
Less current portion		(37	)		(35	)

	$	253		$	290

We have a long-term revolving line of credit of $30,000,000 that, as of December 31, 2011, had no outstanding balance. At the Company’s option, the interest rate on this line of credit can be fixed at 2.50% over a selected LIBOR rate or can be fixed at 2.25% above LIBOR for a fixed rate term. During the term of this credit facility (which matures in October 2013), we can borrow at any time and partially or wholly repay any outstanding borrowings and then re-borrow, as necessary. Under the terms of the line of credit, we must maintain tangible net worth, defined as total equity, including noncontrolling interest, plus debt less intangible assets, of not less than $175,000,000 and liquid assets of not less than $25,000,000. At December 31, 2011 our tangible net worth was $300,439,000 and liquid assets were $86,938,000. A portion of our farm acreage secures this line of credit. The outstanding long-term debt, less current portion of $37,000, is $253,000 at December 31, 2011. This debt is being used to provide long-term financing for a building being leased to Starbucks and the debt is secured by the leased building and land, which has a book value of $337,000. The balance of the long-term debt instrument listed above approximates the fair value of the instrument.

Interest incurred and paid was $178,000, $180,000, and $306,000, for the years ended December 31, 2011, 2010, and 2009, respectively. The Company’s capitalized interest costs were $178,000, $171,000, and $236,000, for the years ended December 31, 2011, 2010, and 2009, respectively.

Maturities of long-term debt at December 31, 2011 are $37,000 in 2012, $40,000 in 2013, $40,000 in 2014, $46,000 in 2015, $49,000 in 2016, and $75,000 thereafter. This maturity schedule reflects the payments related to both the long-term debt and the current portion of long-term debt.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

STOCK OPTION PLAN

12 Months Ended

Dec. 31, 2011

STOCK OPTION PLAN

7.	STOCK OPTION PLAN

The Company’s Stock Incentive Plan provides for the making of awards to employees, consultants, and advisors of the Company with respect to 2,350,000 shares of the Company’s common stock. Since the initial adoption of the 1998 Stock Incentive Plan through December 31, 2011, the Company has granted options to purchase 1,129,292 shares at a price equal to the fair market value at date of grant, 1,077,792 of which have been exercised or forfeited, leaving 51,500 granted options outstanding at December 31, 2011. Options granted under the 1998 Plan vest over a five-year period and have ten-year contractual terms.

The Non-Employee Director Stock Incentive Plan, or NDSI Plan, is intended to enable the Company to attract, retain, and motivate non-employee directors by providing for or increasing the proprietary interest of such persons in the Company. The NDSI Plan provides for the grant of awards to non-employee directors with respect to an aggregate of 200,000 shares of the Company’s common stock. Since the initial adoption of the NDSI Plan through December 31, 2011, the Company has granted options under the plan to purchase 83,518 shares at a price equal to the fair market value at date of grant, of which 68,325 options have been exercised or forfeited, leaving 15,193 granted options outstanding at December 31, 2011.

There were no options granted during 2011, 2010 or 2009 under either the Stock Incentive Plan or the NDSI Plan.

Exercise prices for all options outstanding as of December 31, 2011 ranged from $24.49 to $27.90. The weighted-average remaining contractual life of those options is approximately one year. None of the options granted under the 1998 Plan or the NDSI Plan contain conversion features.

The following is a summary of the Company’s stock option activity and related information for the years ended December 31:


	2011						2010						2009
	Options			Weighted- Average Exercise Prices Per Share			Options			Weighted- Average Exercise Prices Per Share			Options			Weighted- Average Exercise Prices Per Share
Outstanding beginning of year		271,858		$	25.97			354,294		$	25.18			502,621		$	24.26
Granted								—			—			—			—
Exercised		(205,165	)		(25.57	)		(78,894	)		(22.47	)		(11,858	)		(20.30	)
Forfeited/Cancelled		—			—			(3,542	)		(24.71	)		(136,469	)		(23.17	)

Outstanding end of year		66,693		$	27.32			271,858		$	25.97			354,294		$	25.18

Options exercisable end of year		66,693		$	27.32			271,858		$	25.97			354,294		$	25.18

As of December 31, 2011, there is no unrecognized compensation cost related to stock options. The total intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009 was $1,628,000, $628,000, and $34,000, respectively. As of December 31, 2011, there were 66,693 options vested and exercisable with a weighted-average exercise price of $27.32, aggregate intrinsic value of $0, and a weighted-average remaining contractual life of one year.

There was no compensation cost related to stock option arrangements recognized in income for the years ended December 31, 2011, 2010, and 2009. No stock option payment compensation costs were capitalized during this period.

STOCK COMPENSATION PLAN

12 Months Ended

Dec. 31, 2011

STOCK COMPENSATION PLAN

8.	STOCK COMPENSATION PLAN

The Stock Incentive Plan, provides for the making of stock grant awards to employees based upon time-based criteria or through the achievement of performance-related objectives. The Company has issued three types of stock grant awards under these plans: restricted stock with time-based vesting, performance share grants that only vest upon the achievement of specified performance conditions, and performance share grants that include threshold, target, and maximum achievement levels based on the achievement of specific performance conditions. The Company has issued 167,561 shares of restricted stock that vest over four-year periods of time and of this amount 99,061 shares have vested. The Company also has granted performance units with stock awards ranging from zero shares if below threshold performance conditions to 98,702 for threshold performance, 676,008 shares for target performance, and 995,132 for maximum performance. These awards are tied to corporate cash flow goals and the achievement of specified milestone development activities.

The following table is a summary of the Company’s stock grant activity assuming target achievement for performance grants for the years ended December 31:


	2011			2010			2009
Stock Grants Outstanding Beginning of Year		782,087			467,110			418,831
New Stock Grants		64,679			665,719			62,513
Vested Grants		(36,980	)		(56,409	)		(3,725	)
Expired/Forfeited Grants		(65,278	)		(294,333	)		(10,509	)

Stock Grants Outstanding End of Year		744,508			782,087			467,110

The fair value of restricted stock with time-based vesting features is based upon the Company’s share price on the date of grant and is expensed over the service period. Fair value of performance grants that cliff vest based on the achievement of performance conditions is based on the share price of the Company’s stock on the day of grant once the Company determines that it is probable that the award will vest. This fair value is expensed over the service period applicable to these grants. For performance grants that contain a range of shares from zero to maximum we determine, based on historic and projected results, the probability of (1) achieving the performance objective, and (2) the level of achievement. Based on this information, we determine the fair value of the award and measure the expense over the service period related to these grants. Because the ultimate vesting of all performance grants is tied to the achievement of a performance condition, we adjust compensation cost according to the actual outcome of the performance condition.

For the year ended December 31, 2011 there was expense relating to employee stock compensation of $5,182,000. For the year ended December 31, 2010, there was a net reversal of expense of $3,269,000. At December 31, 2011, the Company had unamortized costs of $12,435,000 related to time grants and performance grants with a weighted average amortization period of approximately 36 months. There was $17,382,000 of amortized costs related to time grants and performance grants at December 31, 2010, with a 49 month weighted average amortization period.

During 2011, we determined that the estimate of achievement of the 2010 performance grants tied to the achievement of cash flow objectives would move from target to maximum achievement. We also adjusted one of the performance milestone grant estimates from maximum achievement to target achievement during the fourth quarter due to the timing of release of the Centennial draft EIR. Also during the fourth quarter adjustments were made as to the expensing of annual incentive stock bonus grants for Mr. Stine. We now expense all of the cost related to these annual stock grants at time of grant due to Mr. Stine receiving any unvested shares immediately at time of retirement. All of these changes resulted in a net increase in expense and a reduction of pre-tax income of approximately $196,000. During 2010, the Compensation Committee of the Board of Directors elected to modify selected outstanding and unvested milestone performance shares. The effect of this modification resulted in the reversal of prior stock compensation expense of $6,327,000. During 2009, it was determined that certain performance conditions related to cash flow and milestone goals would not be achieved and the related cumulative compensation cost previously recorded for these awards was reversed. The impact of these changes resulted in a reduction in expense and increases in pretax income of $369,000.

Under the Board of Directors’ compensation plan, each director receives their annual compensation in stock. Under this plan, 69,557 shares of stock have been granted since the plan was adopted. Total expenses relating to director stock compensation during the year ended December 31, 2011 was $325,000. There was also $325,000 of total expenses related to this plan for the year ended December 31, 2010.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

+ Details

INTEREST RATE RISK MANAGEMENT

12 Months Ended

Dec. 31, 2011

INTEREST RATE RISK MANAGEMENT

9.	INTEREST RATE RISK MANAGEMENT

At December 31, 2011, the Company had no outstanding interest rate swap agreements. However, a joint venture of the Company, TA/Petro, has an interest rate swap agreement with respect to $18,716,000 of its long-term debt to manage interest rate risk by converting floating interest rate debt to fixed-rate debt. This swap agreement matures in August 2012 and is a contract to exchange variable-rate for fixed-rate interest payments periodically over the life of the agreement. The interest rate swap fixed rate is 6.05%. The joint venture accounts for the swap as a cash flow hedge with changes in the fair value of the swap recorded in other comprehensive income. The Company accounts for its share of the change in the interest rate swap in other comprehensive income and investments in unconsolidated joint ventures. As of December 31, 2011 and 2010, the Company’s portion of the fair market value of the interest rate swap was a loss of $93,000 and $223,000, respectively.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6887037&loc=d3e80784-113994

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5579245-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624163-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624171-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41638-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5580258-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5579240-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41641-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41620-113959

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624181-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5618551-113959

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624177-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6887037&loc=d3e80748-113994

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624258-113959

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5708775-113959

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41635-113959

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5708773-113959

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

+ Details

INCOME TAXES

12 Months Ended

Dec. 31, 2011

INCOME TAXES

10.

INCOME TAXES

The Company accounts for income taxes using ASC 740, “Income Taxes” which is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized differently in the financial statements and the tax returns. The provision (benefit) for income taxes consists of the following at December 31:


($ in thousands)	2011			2010		2009
Total provision (benefit):	$	7,367		$	2,852	$	(2,354	)

Federal:
Current	$	6,812			169		(923	)
Deferred		(1,233	)		2,055		(909	)

		5,579			2,224		(1,832	)
State:
Current		2,133			112		71
Deferred		(345	)		516		(593	)

		1,788			628		(522	)

	$	7,367		$	2,852	$	(2,354	)

The reasons for the difference between total income tax expense and the amount computed by applying the statutory Federal income tax rate (34%) to income before taxes are as follows for the years ended December 31:


($ in thousands)	2011			2010			2009
Income tax (benefit) at statutory rate	$	7,909		$	2,389		$	(1,968	)
State income taxes, net of Federal benefit		1,180			384			(351	)
Oil and mineral depletion		(552	)		(275	)		(250	)
Land contribution		—			—			750
Valuation allowance - land contribution		(595	)		—			(750	)
Other, net		(575	)		354			215

Total provision (benefit)	$	7,367		$	2,852		$	(2,354	)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows at December 31:


($ in thousands)	2011		2010
Deferred income tax assets:
Accrued expenses	$	222	$	226
Deferred revenues		829		271
Capitalization of costs		1,746		1,424
Pension adjustment		3,660		1,494
Stock grant expense		6,955		5,554
State deferred taxes		761		—
Book deferred gains		963		963
Provision for additional capitalized costs		1,210		1,003
Charitable contributions carryforward		—		892
Other		382		922

Total deferred income tax assets		16,728		12,749

Deferred income tax liabilities:
Deferred gains		1,390		1,390
Depreciation		2,504		2,469
Cost of sales allocations		1,252		1,252
Joint venture allocations		1,054		560
Straight line rent		1,117		1,142
Prepaid expenses		189		98
State deferred taxes		574		406
Other		704		697

Total deferred income tax liabilities		8,784		8,014

Net deferred income tax asset		7,944		4,735

Allowance for deferred tax assets		—		(750	)

Net deferred taxes	$	7,944	$	3,985

The net current and non-current deferred tax assets for 2011 and 2010 are included separately on the face of the balance sheet. Due to the nature of most of our deferred tax assets, the Company believes they will be used through operations in future years and an allowance is not necessary.

During 2011 and 2010, the Company recognized certain net tax benefits related to stock option plans in the amount of $634,000 and $204,000, respectively. Such benefits were recorded as a reduction of income taxes payable and an increase in additional paid in capital.

The Company made total income tax payments of $6,600,000 in 2011 and $875,000 during 2010 that was related primarily to the settlement of a tax audit. The Company received $1,598,000 federal refund in 2011. The Company made no income tax payments during 2009, but received combined federal and state tax refunds related to 2008 in the amount of $661,000.

The Company classifies interest and penalties incurred on tax payments as income tax expenses. During 2010, the Company paid approximately $137,000 in interest costs related to the settlement of a tax audit. The Company recognized accrued interest of $71,000 related to unrecognized tax benefits during year ended December 31, 2009 and penalties of $8,000 during the year.

The Company evaluates its tax positions for all income tax items based on their technical merits to determine whether each position satisfies the “more likely than not to be sustained upon examination” test. The tax benefits are then measured as the largest amount of benefit, determined on a cumulative basis, that is “more likely than not” to be realized upon ultimate settlement. At December 31, 2009, there were $490,000 of unrecognized tax benefits that relate to tax positions of prior years. During 2010, the Internal Revenue Service, or “IRS,” concluded an examination of the Company’s federal income tax returns for 2005, 2006 and 2007. The IRS proposed certain adjustments stemming from the timing of deductions taken for certain costs which the Company expensed when incurred and which the IRS contends should be capitalized and deducted in a later tax period. Management evaluated the proposed adjustments and disagreed with the position taken by the IRS. During October 2010, the Company reached a settlement with the IRS San Francisco Appeals Office. The settlement resulted in the capitalization of costs in 2005 and 2006 to our development projects. Settlement costs of approximately $875,000 related to increased tax payments for 2006 and 2005 were made during the fourth quarter of 2010. Tax years from 2006 to 2010 remain subject to examination by the Federal and California State taxing authorities.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

LEASES

12 Months Ended

Dec. 31, 2011

LEASES

11.

LEASES

The Company is a lessor of certain property pursuant to various commercial lease agreements having terms ranging up to 60 years. The cost and accumulated depreciation of buildings and improvements subject to such leases were $6,047,000 and $3,656,000, respectively, at December 31, 2011. Income from commercial rents included in real estate revenue, excluding percentage rents based on sales revenues, was $4,620,000 in 2011, $4,494,000 in 2010, and $4,648,000 in 2009. Contingent commercial payments were $310,000, $443,000, and $628,000, for 2011, 2010, and 2009, respectively. Future minimum rental income on non-cancelable operating leases as of December 31, 2011 is $4,053,000 in 2012, $3,761,000 in 2013, $3,710,000 in 2014, $3,693,000 in 2015, $3,568,000 in 2016, and $27,011,000 for years thereafter.

- Definition

The entire disclosure for lessor entity's leasing arrangements for operating, capital and leveraged leases.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 13
-Paragraph 23
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6452767&loc=d3e37045-112695

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952072&loc=d3e45377-112738

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 10
-Section 55
-Paragraph 47
-URI http://asc.fasb.org/extlink&oid=6584217&loc=d3e38847-112698

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 30
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6952072&loc=d3e45424-112738

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6453916&loc=d3e41460-112716

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6454179&loc=d3e41551-112718

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 30
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6952072&loc=d3e45437-112738

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 20
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6453916&loc=d3e41457-112716

+ Details

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2011

COMMITMENTS AND CONTINGENCIES

12.

COMMITMENTS AND CONTINGENCIES

A total of 5,488 acres (unaudited) of the Company’s land is subject to water contracts requiring minimum future annual payments for as long as the Company owns such land. The estimated minimum payments for 2012 are $2,500,000 before any potential credits are received, whether or not water is available or is used. Total payments made under these contracts were approximately $2,223,000 in 2011, $2,851,000 in 2010, and $2,624,000 in 2009.

The Tejon Ranch Public Facilities Financing Authority, or TRPFFA, is a joint powers authority formed by Kern County and the Tejon-Castac Water District, or TCWD, to finance public infrastructure within the Company’s Kern County developments. TRPFFA has created two Community Facilities Districts, or CFDs, the West CFD and the East CFD. The West CFD has placed liens on 1,728 acres of the Company’s land to secure payment of special taxes related to $30,000,000 of bond debt sold by TRPFFA for TRCC-West. The East CFD has placed liens on 1,931 acres of the Company’s land to secure payments of special taxes related to $12,670,000 of bond debt sold by TRPFFA for TRCC-East. At TRCC-West, the West CFD has no additional bond debt approved for issuance. At TRCC-East, the East CFD has approximately $107,000,000 of additional bond debt authorized by TRPFFA.

In connection with the sale of bonds there is a standby letter of credit for $4,584,000 related to the issuance of West CFD bonds and a standby letter of credit for $2,189,000 related to the issuance of East CFD bonds. The standby letters of credit are in place to provide additional credit enhancement and cover approximately two years worth of interest on the outstanding bonds. These letters of credit will not be drawn upon unless the Company, as the largest landowner in each CFD, fails to make its property tax payments. The Company believes that the letters of credit will never be drawn upon. These letters of credit are for two-year periods of time and will be renewed in two-year intervals as necessary. The annual cost related to the letters of credit is approximately $100,000. In February 2012, two series of West CFD Bonds were refinanced to lower the interest rate, this refinancing allows for the release of the above $4,584,000 letter of credit.

The Company is obligated, as a landowner in each CFD, to pay its share of the special taxes assessed each year. The secured lands include both the TRCC-West and TRCC-East developments. Proceeds from the sale of West CFD bonds went to reimburse the Company for public infrastructure related to the TRCC West development. At this time there are no additional reimbursement funds remaining from the West CFD bonds or East CFD bonds for reimbursement of cost. During September 2010 the Company received approximately $10,860,000 of reimbursement related to TRCC-East infrastructure. During 2009, the Company received $2,007,000 of reimbursements related to TRCC-West infrastructure. There were no reimbursements related to infrastructure received in 2011. During 2011, the Company paid approximately $1,061,000 in special taxes. As development continues to occur at TRCC, new owners of land and new lease tenants, through triple net leases, will bear an increasing portion of the assessed special tax. As this happens, the Company’s obligation is correspondingly reduced. This amount could change in the future based on the amount of bonds outstanding and the amount of taxes paid by others. As development and land and building values increase around TRCC-West, the Company may be able to have up to approximately 1,400 acres released from the West CFD lien. During February 2012, TRPFFA refinanced approximately $22,500,000 of bonds within the West CFD. This refinancing, due to values in the West CFD and changes to bond requirements, allows the Company to be released from the requirement to provide a letter of credit and also allows the CFD to meet the value test for release of approximately 1,400 acres of the Company’s land from West CFD liens.

Tejon Mountain Village

On October 5, 2009, the Kern County Board of Supervisors granted entitlement approval for TMV. On November 10, 2009, a group consisting of CBD, Wishtoyo Foundation, Tri-County Watchdogs and the Center on Race, Poverty and the Environment filed an action in the Kern County Superior Court under the California Environmental Quality Act, or CEQA, against Kern County and the Kern County Board of Supervisors, or collectively, the County, concerning the County’s granting of approval for TMV, including the certification of the Environmental Impact Report, or EIR, approval of associated General Plan amendments, adoption of associated Zoning Maps, adoption of Special Plan No. 1, Map 256, exclusion from Agricultural Preserves Nos. 4 and 19, and approval of Vesting Tentative Tract Maps 6720 and 6717, among other associated approvals. TMV was named as the Real Party in Interest in the action.

The action alleged that the County failed to properly follow the procedures and requirements of CEQA including failure to identify, analyze and mitigate impacts to air quality, biological resources, hydrology and water quality, traffic, cultural resources, hazards, and failure to adequately describe the project and the environmental setting. The action also alleged that the County violated the Planning and Zoning Law and the Kern County General Plan. With these allegations the plaintiff is attempting to get the EIR approval from Kern County overturned.

On November 5, 2010, Kern County Superior Court Judge Kenneth Twisselman ruled in favor of Kern County, the Company, and its development partner DMB Associates, Inc., when he found that the County had properly analyzed and evaluated the environmental effects of TMV. In his ruling, Judge Twisselman rejected claims made by the above listed plaintiffs. On February 8, 2011, CBD appealed the Court’s decision. On June 17, 2011 CBD filed its appeal documents for the Court’s review. Our response to the plaintiff’s documents was filed August 16, 2011. CBD filed its final reply brief with the court on September 20, 2011. Thereafter, Kern County and the Company filed a joint motion to strike certain portions of CBD’s briefs on the grounds that they had not been previously raised. The Court of Appeal has indicated that it will rule on the motion after a panel has been assigned to the appeal, which has not yet occurred. On January 27, 2012, the Company’s counsel received notification from the Court of Appeal that the appeal would be decided without oral argument unless requested by any party. The oral argument of CBD’s appeal is scheduled on March 21, 2012.

On November 10, 2009, an additional suit was filed in the U.S. District Court for the Eastern District of California (Fresno division) by an alleged representative of the “Kawaiisu Tribe” alleging, inter alia, that the Company does not hold legal title to the land within the TMV development that it seeks to develop. The grounds for the federal lawsuit were the subject of a United States Supreme Court decision in 1924 where the United States Supreme Court found against the Indian tribes. On January 24, 2011, the Company received a ruling by Judge Wanger, which dismissed all claims against the Company, TMV, the County and the federal defendants. However, the judge did grant a limited right by the plaintiff to amend certain causes of action in the complaint. During April, 2011, the plaintiff amended his complaint and refiled a suit against the Company, alleging similar items as in the original suit. The plaintiff filed new materials during July 2011 related to the amended complaint. Thereafter, the case was reassigned to Judge McAuliffe. On January 18, 2012, the court issued an order again dismissing the plaintiffs’ claims for failure to state a cause of action and/or for lack of jurisdiction, but allowing the plaintiff one more opportunity to state certain land claims provided plaintiff files an amended complaint on or before February 17, 2012. The court then granted plaintiff an extension until March 19, 2012 to file an amended complaint. It appears likely that plaintiff will file such a complaint prior to the court imposed deadline. The court also indicated that it is considering dismissing the case due to the lack of federal recognition of the “Kawaiisu Tribe”. The Company believes that a negative outcome on either case is remote at this time and the monetary impact of an adverse claim also cannot be estimated at this time.

National Cement

The Company leases land to National Cement Company of California Inc., or National, for the purpose of manufacturing Portland cement from limestone deposits on the leased acreage. The California Regional Water Quality Control Board, or RWQCB, for the Lahontan Region issued several orders in the late 1990s with respect to environmental conditions on the property currently leased to National:

(1)

Groundwater plume of chlorinated hydrocarbon compounds. This order directs the Company’s former tenant Lafarge Corporation, or Lafarge, the current tenant National, and the Company to, among other things, clean up groundwater contamination on the leased property. In 2003, Lafarge and National installed a groundwater pump-and-treat system to clean up the groundwater. The Company is advised that Lafarge and National continue to operate the cleanup system and will continue to do so over the near-term.

(2)

Cement kiln dust. National and Lafarge have consolidated, closed and capped cement kiln dust piles located on land leased from the Company. An order of the RWQCB directs National, Lafarge and the Company to maintain and monitor the effectiveness of the cap. Maintenance of the cap and groundwater monitoring remain as on-going activities.

(3)

Former industrial waste landfills. This order requires Lafarge, National and the Company to complete the cleanup of groundwater associated with the former industrial waste landfills. The Company is advised that the cleanup is complete. Lafarge continues to monitor the groundwater.

(4)

Diesel fuel. An order of the RWQCB directs Lafarge, National and the Company to clean up contamination from a diesel fuel tank and pipeline. The Company is advised that Lafarge and National have substantially completed the groundwater cleanup and that groundwater monitoring remains an on-going activity.

To date, the Company is not aware of any failure by Lafarge or National to comply with the orders or informal requests of the RWQCB. Under current and prior leases, National and Lafarge are obligated to indemnify the Company for costs and liabilities arising directly or indirectly out of their use of the leased premises. The Company believes that all of the matters described above are included within the scope of the National or Lafarge indemnity obligations and that Lafarge and National have sufficient resources to perform any reasonably likely obligations relating to these matters. If they do not and the Company is required to perform the work at its own cost, it is unlikely that the amount of any such expenditure by the Company would be material.

Antelope Valley Groundwater Cases

On November 29, 2004, a conglomerate of public water suppliers filed a cross-complaint in the Los Angeles Superior Court seeking a judicial determination of the rights to groundwater within the Antelope Valley basin, including the groundwater underlying the Company’s land. Three phases of a multi-phase trial have been completed. Upon completion of the third phase the court ruled that the groundwater basin is currently in overdraft and established a current total sustainable yield. The court is currently encouraging mediation sessions to settle remaining regional issues, such as groundwater pumping allocations and appointment of a regional water master. Several such mediation sessions have occurred, the most recent of which was January 25 and 26, 2012. Further mediation sessions are also planned. It is too early to ascertain what effect, if any, this case may have on the Centennial project or the Company’s remaining lands in the Antelope Valley. Because the water supply plan for the Centennial project includes several sources of water in addition to groundwater underlying the Company’s lands, and because the creation of an efficient market for local water rights is frequently an outcome of adjudication proceedings, we anticipate that sufficient water to supply the Company’s needs will continue to be available for its use regardless of the outcome of this case.

State Water Resources Control Board Lawsuit

On May 12, 2010, the California Attorney General, on behalf of the State Water Resources Control Board, filed a complaint in the Alameda County Superior Court for civil penalties and a permanent injunction against a number of TravelCenters of America LLC, or TA, facilities in the Central Valley of California. The travel centers in the Petro Travel Plaza Holdings LLC, or TA/Petro, were also included in the complaint. The lawsuit alleges violations of various reporting, operating and monitoring regulations related to operation and maintenance of underground storage tanks. In addition to the TA/Petro entity and its respective member entities, the lawsuit also names the Company and Tejon Industrial Corporation as defendants. The Company has tendered defense of the lawsuit to TA, under the “defend and indemnify” clause in the TA/Petro LLC’s operating agreement, and has also secured the services of an outside law firm to work with TA’s outside counsel under a joint defense agreement. Counsel for TA and the Company have worked with the California Attorney General to change the venue of the lawsuit to Merced County, and on September 16, 2011, the Company and Tejon Industrial Corp. were dismissed from the law suit, without prejudice. The parties are currently engaged in the discovery process, but at this point the Company has an insufficient basis to address the merits or potential outcomes of the lawsuit. The monetary value of a potential adverse outcome on the claim likewise cannot be estimated at this time.

Water Bank Lawsuits

On June 3, 2010, Central Delta and South Delta Water Agencies and several environmental groups, including CBD, filed a complaint in the Sacramento County Superior Court against the California Department of Water Resources (DWR), Kern County Water Agency and a number of “real parties in interest,” including the Company and TCWD. The lawsuit challenges certain amendments to the State Water Project contracts that were originally approved in 1995, known as the “Monterey Amendments.” The original EIR for the Monterey Amendments was determined to be insufficient in a lawsuit, and the current lawsuit challenges the remedial EIR that DWR prepared as a result of the original lawsuit. Among other legal allegations, the current lawsuit also challenges the transfer of the Kern Water Bank, or KWB, from DWR to Kern County Water Agency and in turn to various Kern County interests, including TCWD, which has a 2% interest in the KWB. A parallel lawsuit was also filed against Kern County Water Agency, also naming the Company and TCWD as real parties in interest. The Company is named on the ground that it “controls” TCWD. TCWD has a contract right for water stored in the KWB and rights to recharge and withdraw water. Counsel for the Company is pursuing a dismissal of the Company from these lawsuits. Given the preliminary nature of these lawsuits, the Company has an insufficient basis to address the merits or potential outcomes of the lawsuit. The monetary value of a potential adverse outcome on the claim likewise cannot be estimated at this time.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

RETIREMENT PLANS

12 Months Ended

Dec. 31, 2011

RETIREMENT PLANS

13.

RETIREMENT PLANS

The Company has a defined benefit retirement plan that covers the majority of employees hired prior to February 1, 2007. The benefits are based on years of service and the employee’s five-year final average salary. Contributions are intended to provide for benefits attributable to service both to date and expected to be provided in the future. The Company funds the plan in accordance with the Employee Retirement Income Security Act of 1974, or ERISA. The following accumulated benefit information is as of December 31:


($ in thousands)	2011			2010
Change in benefit obligation
Benefit obligation at beginning of year	$	7,110		$	5,896
Service cost		251			239
Interest cost		384			316
Actuarial gain/assumption changes		1,591			877
Benefits paid		(635	)		(218	)

Benefit obligation at end of year	$	8,701		$	7,110

Accumulated benefit obligation at end of year	$	7,659		$	6,324

Change in Plan Assets
Fair value of plan assets at beginning of year	$	5,591		$	4,442
Actual return on plan assets		26			528
Employer contribution		791			880
Benefits/expenses paid		(686	)		(259	)

Fair value of plan assets at end of year	$	5,722		$	5,591

Funded status - liability	$	(2,979	)	$	(1,519	)


	2011			2010
Amounts recorded in equity
Net actuarial (gain)	$	(3,236	)	$	(3,470	)
Prior service cost		205			234

Total amount recorded	$	(3,031	)	$	(3,236	)

Amount recorded, net taxes	$	(1,819	)	$	(1,922	)

Other changes in plan assets and benefit obligations recognized in other comprehensive income for 2011 and 2010 include the following components:


	2011			2010
Net (gain) loss	$	(537	)	$	(691	)
Recognition of net actuarial gain or (loss)		249			215
Recognized prior service cost		(29	)		(29	)

Total changes	$	(317	)	$	(505	)

Changes, net of taxes	$	(127	)	$	(299	)

The Company expects to recognize the following amounts as a component of net periodic pension costs during the next fiscal year ($ in thousands):


Amortization net actuarial gain or (loss)	$	249
Amortization prior service cost	$	(29	)

At December 31, 2011 and 2010 the Company has a long-term pension liability. The Company has always valued its plan assets as of December 31 each year so there were no additional transition impacts upon implementation of a year-end measurement date for plan assets as required by FASB 158 for fiscal years ending after December 15, 2008. For 2012, the Company is estimating that contributions to the pension plan will be approximately $750,000. Based on actuarial estimates, it is expected that annual benefit payments will be $150,000 in 2012, $201,000 in 2013, $217,000 in 2014, $274,000 in 2015, $376,000 in 2016, and $2,064,000 for years 2017 through 2020.

Plan assets consist of equity, debt and short-term money market investment funds. The plan’s current investment policy targets 65% equities, 25% debt, and 10% money market funds. Equity and debt investment percentages are allowed to fluctuate plus or minus 20% around the target to take advantage of market conditions. At December 31, 2011, the investment mix was 66% equity, 29% debt, and 5% money markets. Equity investments consist of a combination of individual equity securities plus value funds, growth funds, large cap funds, and international stock funds. Debt investments consist of U.S. Treasury securities and investment-grade corporate debt. The weighted-average discount rate and rate of increase in future compensation levels used in determining the actuarial present value of projected benefits obligation was 4.4% and 3.5% for 2011, 5.5% and 3% for 2010, and 6% and 3% in 2009. The expected long-term rate of return on plan assets was 7.5% for all years. The long-term rate of return on plan assets is based on the historical returns within the plan and expectations for future returns. The fair value of plan assets is determined using level one and level two indicators, which are determined based on quoted market prices in active markets for the securities or from quoted prices for similar assets in active markets. See the following table for fair value hierarchy by investment type at December 31:


($ in thousands)	Fair Value Hierarchy		2011		2010
Pension Plan Assets:
Cash and Cash Equivalents		Level 1	$	190	$	400
Collective Funds		Level 2		2,619		3,098
Treasury/Corporate Notes		Level 2		1,263		785
Corporate Equities		Level 1		1,650		1,308

			$	5,722	$	5,591

Total pension and retirement expense was as follows for each of the years ended December 31:


($ in thousands)	2011			2010			2009
Cost components:
Service cost	$	(251	)	$	(239	)	$	(260	)
Interest cost		(384	)		(316	)		(273	)
Expected return on plan assets		446			342			266
Net amortization and deferral		(220	)		(186	)		(140	)

Total net periodic pension cost	$	(409	)	$	(399	)	$	(407	)

The Company has a Supplemental Executive Retirement Plan, or SERP, to restore to executives designated by the Compensation Committee of the Board of Directors the full benefits under the pension plan that would otherwise be restricted by certain limitations now imposed under the Internal Revenue Code. The SERP is currently unfunded. The following SERP benefit information is as of December 31:


($ in thousands)	2011			2010
Change in benefit obligation - SERP
Benefit obligation at beginning of year	$	3,196		$	3,325
Service cost		172			223
Interest cost		215			226
Actuarial gain/assumption changes		1,891			(578	)

Benefit obligation at end of year	$	5,474		$	3,196

Accumulated benefit obligation at end of year	$	5,317		$	3,747

Funded status - liability		(5,474	)		(3,196	)


	2011		2010
Amounts recorded in stockholders’ equity
Net actuarial (gain)	$	1,825	$	(578	)
Prior service cost		—		—

Total amount recorded	$	1,825	$	(578	)

Amount recorded, net taxes	$	1,098	$	(330	)

Other changes in benefit obligations recognized in other comprehensive income for 2011 and 2010 include the following components:


	2011			2010
Net (gain) loss	$	1,170		$	(578	)
Recognition of net actuarial gain or (loss)		(66	)		—
Recognized prior service cost		—			—

Total changes	$	1,104		$	(578	)

Changes, net of taxes	$	662		$	(330	)

The Company expects to recognize the following amounts as a component of net periodic pension costs during the next fiscal year ($ in thousands):


Amortization net actuarial gain or (loss)		$	66

Based on actuarial estimates, it is expected that annual benefit payments will be $411,000 in 2012, $406,000 in 2013, $401,000 in 2014, $396,000 in 2015, $390,000 in 2016, and $1,845,152 for years 2017 through 2020.

The weighted-average discount rate and rate of increase in future compensation levels used in determining the actuarial present value of projected benefits obligation was 3.95% and 3.5% for 2011, 5.5% and 3% for 2010, and 6% and 3% in 2009.

Total pension and retirement expense was as follows for each of the years ended December 31:


($ in thousands)	2011			2010			2009
Cost components:
Service cost	$	(172	)	$	(223	)	$	(280	)
Interest cost		(215	)		(226	)		(299	)
Net amortization and deferral		(66	)		—			—

Total net periodic pension cost	$	(453	)	$	(449	)	$	(579	)

The Company also provides a 401(k) plan to its employees and contributed $75,000 to the plan for 2011 and $84,000 to the plan for 2010.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

+ Details

BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2011

BUSINESS SEGMENTS

14.

BUSINESS SEGMENTS

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

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


($ in thousands)	2011			2010			2009
Revenues
Real estate - commercial/industrial	$	25,952		$	16,656		$	14,996
Real estate - resort/residential		16,134			281			272
Farming		21,012			18,576			12,983

Segment revenues		63,098			35,513			28,251
Investment income		1,260			979			1,640
Other income		98			61			45

Total revenues	$	64,456		$	36,553		$	29,936

Segment Profits (Losses) and Income (Loss) Before Taxes
Real estate - commercial/industrial	$	12,522		$	5,997		$	2,527
Real estate - resort/residential		12,192			(2,808	)		(4,171	)
Farming		8,437			7,662			1,179

Segment profits		33,151			10,851			(465	)
Investment income		1,260			979			1,640
Other income		98			61			45
Interest expense		0			(9	)		(70	)
Corporate expenses		(12,277	)		(5,612	)		(7,311	)

Income (loss) before equity in earnings of unconsolidated joint ventures		22,232			6,270			(6,161	)
Equity in earnings of unconsolidated joint ventures		916			541			374

Income (loss) before taxes	$	23,148		$	6,811		$	(5,787	)

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

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


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

	$	25,952	$	16,656	$	14,996

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

Resort/residential land development produces revenues from farming activities within the Centennial Founders LLC and is actively involved in the land entitlement and pre-development process. Farming produces revenues from the sale of winegrapes, almonds, and pistachios. Information pertaining to assets of the Company’s business segments is as follows for each of the years ended December 31:


($ in thousands)	Identifiable Assets		Depreciation and Amortization		Capital Expenditures
2011
Real estate - commercial/industrial	$	57,745	$	1,111	$	4,155
Real estate - resort/residential		110,147		96		7,132
Farming		24,326		1,293		1,477
Corporate		129,758		1,097		885

Total	$	321,976	$	3,597	$	13,649

2010
Real estate - commercial/industrial	$	51,053	$	867	$	7,716
Real estate - resort/residential		98,829		63		5,296
Farming		26,366		1,193		389
Corporate		111,843		422		795

Total	$	288,091	$	2,545	$	14,196

2009
Real estate - commercial/industrial	$	59,652	$	1,031	$	11,428
Real estate - resort/residential		86,553		133		7,343
Farming		23,375		1,199		1,571
Corporate		65,164		759		583

Total	$	234,744	$	3,122	$	20,925

Segment profits (losses) are total revenues less operating expenses, excluding interest income, corporate expenses and interest expense. Identifiable assets by segment include both assets directly identified with those operations and an allocable share of jointly used assets. Corporate assets consist primarily of cash and cash equivalents, marketable securities, deferred income taxes, and land and buildings. Land is valued at cost for acquisitions since 1936. Land acquired in 1936, upon organization of the Company, is stated on the basis carried by the Company’s predecessor.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

+ Details

INVESTMENTS IN JOINT VENTURES

12 Months Ended

Dec. 31, 2011

INVESTMENTS IN JOINT VENTURES

15.

INVESTMENTS IN JOINT VENTURES

The Company maintains investments in joint ventures. The Company accounts for its investments in unconsolidated joint ventures using the equity method of accounting unless the venture is a variable interest entity, or VIE, and meets the requirements for consolidation. The Company’s investment in its unconsolidated joint ventures at December 31, 2011 was $53,893,000. The equity in the earnings of the unconsolidated joint ventures was $916,000 for the year ended December 31, 2011. These joint ventures have not been consolidated as of December 31, 2011, because we are not the primary beneficiary in the case of VIEs and the Company does not control the investments. The Company’s current joint ventures are as follows:

•

Petro Travel Plaza Holdings LLC - Petro Travel Plaza Holdings LLC, or TA/Petro, is an unconsolidated joint venture with Travel Centers of America, LLC for the development and management of travel plazas and convenience stores. This is a 60%-owned venture, which owns and operates travel plazas/commercial highway operations in TRCC. It houses multiple commercial eating establishments as well as diesel and gasoline operations. The Company does not control the investment due to its having only 50% voting rights, and because our partner performs the day-to-day operations at the facility. At December 31, 2011, the Company had an equity investment balance of $11,973,000 in this joint venture.

•

Tejon Mountain Village LLC - Tejon Mountain Village LLC is an unconsolidated joint venture between the Company and DMB Pacific Partners II (a wholly owned subsidiary of DMB Associates, Inc.) formed to obtain all necessary government entitlement approvals and to develop the Tejon Mountain Village project. The Company owns a 50% interest in this venture. At December 31, 2011, the Company’s equity investment balance in this joint venture was $36,623,000.

•

Rockefeller Joint Ventures - The Company has two joint ventures with Rockefeller Group Development Corporation for the development of buildings on approximately 91 unaudited acres. These joint ventures are part of an agreement for the development of up to 500 unaudited acres of land in TRCC including pursuing Foreign Trade Zone, or FTZ, designation and development of the property within the FTZ for warehouse distribution and light manufacturing. The Company owns a 50% interest in each of the joint ventures. Currently the Five West Parcel LLC joint venture owns and leases a 606,000 square foot (unaudited) building. The second of these ventures, 18-19 West LLC, was formed in August 2009 through the contribution of 61.5 acres (unaudited) of land by the Company, which is being held for future development. As of December 31, 2011, the combined equity investment balance in these joint ventures is $5,297,000.

•

Centennial Founders, LLC - Centennial Founders, LLC is a joint venture in which the Company had a 50% ownership interest until July 1, 2009 when a change in the joint venture operating agreement resulted in the Company satisfying the requirements for controlling the joint venture. This is a venture with Pardee Homes, Lewis Investment Company, and Standard Pacific Corp. that was organized to pursue the entitlement and development of land that the Company owns in Los Angeles County.

We have stated in past filings that the Centennial joint venture operating agreement was amended in August 2009 to allow our partners to become non-funding members during the entitlement phase of the project while we continue as the sole funding partner. During this period any non-funding partner’s percentage ownership interest will be diluted by a 2-to-1 ratio with regard to the amount of capital contributed on such partner’s behalf. Consequently, the operating results of Centennial Founders, LLC were consolidated effective July 1, 2009. Despite this change, our partners continue to be involved in an advisory capacity and may re-elect contributing status at a later time. At December 31, 2011 we have a 68.06% ownership position in Centennial Founders, LLC.

Based on the Second Amended and Restated Limited Company Agreement of Centennial Founders, LLC and the change in control and funding that resulted from the amended agreement, Centennial Founders, LLC qualified as a VIE beginning in the third quarter of 2009 and the Company was determined to be the primary beneficiary. As a result, Centennial Founders, LLC has been consolidated into our financial statements beginning in that quarter. Our partners retained a noncontrolling interest in the joint venture.

Condensed financial information of the Company’s joint ventures as of and for the year ended December 31 is as follows:

Statement of Operations for the Year Ended

December 31, 2011 ($ in thousands)


	UNCONSOLIDATED													CONSOLIDATED
	Petro Travel Plaza Holdings		Five West Parcel			Tejon Mountain Village			18-19 West			Total		Centennial
Revenues	$	115,992	$	178								$	116,170	$	380

Net income (loss)		3,104		(1,834	)		(38	)		(6	)	$	1,226		(336	)

Partner’s share of net income (loss)		1,242		(917	)		(19	)		(3	)	$	303		(113	)

Equity in earnings (losses) of unconsolidated joint ventures	$	1,862	$	(917	)	$	(26	)	$	(3	)	$	916	$	—

Balance Sheet Information as of

December 31, 2011


	Petro Travel Plaza Holdings			Five West Parcel			Tejon Mountain Village			18-19 West		Total			Centennial
Current assets	$	16,940		$	116		$	1,020		$	12	$	18,088		$	325
Property and equipment, net		44,092			16,509			85,127			4,255		149,983			67,684
Other assets		307			37			—			—		344			—
Long-term debt		(18,076	)		(8,625	)		—			—		(26,701	)		—
Other liabilities		(2,648	)		(201	)		(1,122	)		—		(3,971	)		(1,106	)

Net assets	$	40,615		$	7,836		$	85,025		$	4,267	$	137,743		$	66,903

Statement of Operations for the Year Ended

December 31, 2010 ($ in thousands)


	UNCONSOLIDATED													CONSOLIDATED
	Petro Travel Plaza Holdings		Five West Parcel			Tejon Mountain Village			18-19 West			Total		Centennial
Revenues	$	105,015	$	387		$	—		$	—		$	105,402	$	278

Net income (loss)		2,008		(1,249	)		(72	)		(6	)	$	681		(558	)

Partner’s share of net income (loss)		803		(624	)		(36	)		(3	)	$	140		(216	)

Equity in earnings (losses) of unconsolidated joint ventures	$	1,205	$	(625	)	$	(36	)	$	(3	)	$	541	$	—

Balance Sheet Information as of

December 31, 2010


	Petro Travel Plaza Holdings			Five West Parcel			Tejon Mountain Village			18-19 West		Total			Centennial
Current assets	$	13,717		$	45		$	892		$	15	$	14,669		$	85
Property and equipment, net		44,642			17,179			77,233			4,022		143,076			61,879
Other assets		226			302			—			—		528			1
Long-term debt		(19,287	)		(8,625	)		—			—		(27,912	)		—
Other liabilities		(2,151	)		(116	)		(894	)		—		(3,161	)		(1,251	)

Net assets	$	37,147		$	8,785		$	77,231		$	4,037	$	127,200		$	60,714

The Company’s investment balance in its unconsolidated joint ventures differs from its respective capital accounts in the respective joint ventures. The differential represents the difference between the cost basis of assets contributed by the Company and the agreed upon contribution value of the assets contributed, as well as the amount and timing of joint venture distributions.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

+ References + Details

UNAUDITED QUARTERLY OPERATING RESULTS

12 Months Ended

Dec. 31, 2011

UNAUDITED QUARTERLY OPERATING RESULTS

16.

UNAUDITED QUARTERLY OPERATING RESULTS

The following is a tabulation of unaudited quarterly operating results for the years indicated:


($ in thousands, except per share)	Total Revenue (1)		Segment Profit (Loss)			Net Income (Loss) attributable to Common Stockholders			Net Income(Loss), Per Share attributable to Common Stockholders (2)
2011
First Quarter (3)	$	22,969	$	16,276		$	8,736		$	0.44
Second Quarter		6,219		989			(638	)		(0.03	)
Third Quarter		15,099		5,690			2,558			0.13
Fourth Quarter		20,169		10,196			5,238		$	0.26

	$	64,456	$	33,151		$	15,894

2010
First Quarter	$	4,340	$	(336	)	$	(1,333	)	$	(0.08	)
Second Quarter		4,499		(418	)		(1,149	)		(0.06	)
Third Quarter		16,533		9,993			7,850			0.40
Fourth Quarter		11,181		1,612			(1,193	)	$	(0.06	)

	$	36,553	$	10,851		$	4,175

(1)	Includes investment income and other income.

(2)	Net income (loss) per share on a diluted basis. Quarterly rounding of per share amounts can result in a variance from the reported annual amount.

(3)	Includes revenue of $15,750,000 from the sale of conservation easements.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details