Segment Reporting | 16 . Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is regularly reviewed by the chief operating decision maker in assessing performance and deciding how to allocate resources. Reportable segments consist of one or more operating segments with similar economic characteristics, products and services, production processes, type of customer, distribution system or regulatory environment. The information provided for segment reporting is obtained from internal reports utilized by management of the Company , and t he presentation and allocation of assets and results of operations may not reflect the actual economic costs of the segments as standalone businesses. If a different basis of allocation were utilized, the relative contributions of the segments might differ , but the relative trends in the segments’ operating results would, in management ’ s view, likely not be impacted. In the table for the three and nine months ended September 30, 2018 and 2017, amounts set forth in the column entitled “Corporate Expenses & Other” include interest expense associated with Woodbridge’s trust preferred securities, corporate overhead, the Company’s pizza restaurant operations as a franchisee of MOD Pizza, and a controlling financial interest in a restaurant acquired in connection with a loan receivable default. The Company opened two MOD Pizza restaurant locations during the fourth quarter of 2017 and three locations during the nine months ended September 30, 2018. As of September 30, 2018, management determined that the restaurant operations did not warrant separate presentation as a reportable segment. The Company evaluates segment performance based on segment income before income taxes . Set forth below is summary information regarding the Company ’ s reportable segments: Bluegreen Bluegreen markets, sells and manages real estate-based VOIs in resorts generally located in popular, high-volume, “drive-to” vacation destinations, which were developed or acquired by Bluegreen or are owned by others , in which case Bluegreen earns fees for providing these services. Bluegreen also earns fees by providing VOI title services, club and homeowners’ association management services, mortgage servicing, reservation services, services related to the Traveler-Plus program, food and beverage and other retail operations, and construction design and development services. In addition, Bluegreen provides financing to qualified individual purchasers of VOIs, which provides significant interest income. BBX Capital Real Estate BBX Capital Real Estate’s activities include the acquisition, development, ownership, and management of real estate, real estate development projects, and investments in real estate joint ventures. BBX Capital Real Estate also manages the legacy assets acquired in connection with the Company’s sale of BankAtlantic in July 2012. The legacy assets include portfolios of loans receivable, real estate properties, and loans previously charged off by BankAtlantic. Renin Renin is engaged in the design, manufacture, and distribution of specialty doors, door systems and hardware, and home décor products in the United States and Canada and operates through its headquarters in Canada and two manufacturing, assembly and distribution facilities in Canada and the United States. In addition to its own manufacturing, Renin also sources various products and raw materials from China. During the three months ended September 30, 2018 and 2017, total revenues for the Renin reportable segment include $9.6 million and $6.8 million, respectively, of trade sales to two major customers and their affiliates. During the three months ended September 30 , 2018 and 2017, Renin’s revenues generated outside the United States totaled $7.0 million and $5.0 million, respectively. During the nine months ended September 30 , 2018 and 2017, total revenues for the Renin reportable segment include $26.4 million and $23.4 million, respectively, of trade sales to two major customers and their affiliates. During the nine months ended September 30 , 2018 and 2017, Renin’s revenues generated outside the United States totaled $16.9 million and $15.8 million , respectively. As of September 30 , 2018 and 2017, Renin’s properties and equipment located outside the United States totaled $2.1 million and $2.3 million, respectively. BBX Sweet Holdings BBX Sweet Holdings consists of IT’SUGAR, Hoffman’s Chocolates, and manufacturing facilities in the chocolate and confection industries which serve customers such as boutique retailers, big box chains, department stores, national resort properties, corporate customers, and private label brands. IT’SUGAR, which was acquired by BBX Sweet Holdings in June 2017, is a specialty candy retailer which currently has over 90 retail locations in 26 states and Washington, D.C. Hoffman’s Chocolates is a manufacturer and retailer of gourmet chocolates with retail locations in South Florida. The table below sets forth the Company’s segment information as of and for the three months ended September 30, 2018 (in thousands): Reportable Segments BBX Corporate Capital BBX Expenses Real Sweet & Segment Bluegreen Estate Renin Holdings Other Eliminations Total Revenues: Sales of VOIs $ 70,698 - - - - - 70,698 Fee-based sales commissions 61,641 - - - - - 61,641 Other fee-based services 31,057 - - - - - 31,057 Cost reimbursements 16,900 - - - - - 16,900 Trade sales - - 15,330 26,181 2,297 (5) 43,803 Sales of real estate inventory - 7,478 - - - - 7,478 Interest income 21,531 229 - 15 582 (1,200) 21,157 Net losses on sales of real estate assets - (4) - - - - (4) Other revenue 378 576 - 101 776 (158) 1,673 Total revenues 202,205 8,279 15,330 26,297 3,655 (1,363) 254,403 Costs and expenses: Cost of VOIs sold 11,237 - - - - - 11,237 Cost of other fee-based services 19,937 - - - - - 19,937 Cost reimbursements 16,900 - - - - - 16,900 Cost of trade sales - - 12,306 15,542 1,117 (5) 28,960 Cost of real estate inventory sold - 4,655 - - - - 4,655 Interest expense 9,208 - 157 50 2,915 (1,200) 11,130 Recoveries from loan losses, net - (443) - - - - (443) Asset impairments, net - 191 - - - - 191 Selling, general and administrative expenses 112,407 2,304 2,250 10,666 16,089 (158) 143,558 Total costs and expenses 169,689 6,707 14,713 26,258 20,121 (1,363) 236,125 Equity in net earnings of unconsolidated real estate joint ventures - 373 - - - - 373 Foreign exchange gain - - 76 - - - 76 Income (loss) before income taxes $ 32,516 1,945 693 39 (16,466) - 18,727 Total assets $ 1,336,992 135,929 28,798 89,968 168,396 (82,316) 1,677,767 Expenditures for property and equipment $ 9,242 131 99 2,042 1,729 - 13,243 Depreciation and amortization $ 3,169 91 284 1,610 293 - 5,447 Debt accretion and amortization $ 1,086 - 4 53 91 - 1,234 Cash and cash equivalents $ 195,439 21,625 - 6,485 145,963 - 369,512 Equity method investments $ - 42,550 - - - - 42,550 Goodwill $ - - - 39,482 - - 39,482 Receivable-backed notes payable $ 433,450 - - - - - 433,450 Notes payable and other borrowings $ 137,834 16,285 9,422 3,610 110,026 (80,000) 197,177 Junior subordinated debentures $ 71,147 - - - 65,084 - 136,231 The table below sets forth the Company’s segment information as of and for the three months ended September 30, 2017 (in thousands): Reportable Segments BBX Corporate Segment Capital BBX Expenses Total Real Sweet & *As Bluegreen Estate Renin Holdings Other Eliminations Adjusted Revenues: Sales of VOIs $ 62,453 - - - - - 62,453 Fee-based sales commissions 69,977 - - - - - 69,977 Other fee-based services 27,386 - - - - - 27,386 Cost reimbursements 14,097 - - - - - 14,097 Trade sales - - 16,463 28,255 - - 44,718 Interest income 21,296 697 - 1 241 (1,200) 21,035 Net losses on sales of real estate assets - (18) - - - - (18) Other revenue (119) 964 - 14 507 (118) 1,248 Total revenues 195,090 1,643 16,463 28,270 748 (1,318) 240,896 Costs and expenses: Cost of VOIs sold 6,444 - - - - - 6,444 Cost of other fee-based services 17,182 - - - - - 17,182 Cost reimbursements 14,097 - - - - - 14,097 Cost of trade sales - - 13,509 18,301 - - 31,810 Interest expense 8,058 - 161 85 2,379 (1,200) 9,483 Recoveries from loan losses, net - (2,005) - - - - (2,005) Asset impairments, net - 1,233 - 273 - - 1,506 Reimbursement of litigation costs and penalty - - - - (2,113) - (2,113) Selling, general and administrative expenses 114,934 3,099 2,598 10,879 15,450 (118) 146,842 Total costs and expenses 160,715 2,327 16,268 29,538 15,716 (1,318) 223,246 Equity in net earnings of unconsolidated real estate joint ventures - 2,105 - - - - 2,105 Foreign exchange loss - - (105) - - - (105) Income (loss) before income taxes $ 34,375 1,421 90 (1,268) (14,968) - 19,650 Total assets $ 1,166,247 171,270 38,286 98,538 131,406 (81,891) 1,523,856 Expenditures for property and equipment $ 3,973 58 615 522 612 - 5,780 Depreciation and amortization $ 2,420 161 323 1,327 176 - 4,407 Debt accretion and amortization $ 1,123 - - - 180 - 1,303 Cash and cash equivalents $ 124,002 13,246 - 9,304 117,828 - 264,380 Equity method investments $ - 47,995 - - - - 47,995 Goodwill $ - - - 41,016 - - 41,016 Receivable-backed notes payable $ 419,335 - - - - - 419,335 Notes payable and other borrowings $ 95,594 20,907 16,113 5,169 80,000 (80,000) 137,783 Junior subordinated debentures $ 70,100 - - - 65,012 - 135,112 * See Note 1 for a summary of adjustments. The table below sets forth the Company’s segment information for the nine months ended September 30, 2018 (in thousands): Reportable Segments BBX Corporate Capital BBX Expenses Real Sweet & Segment Bluegreen Estate Renin Holdings Other Eliminations Total Revenues: Sales of VOIs $ 195,412 - - - - - 195,412 Fee-based sales commissions 167,581 - - - - - 167,581 Other fee-based services 89,472 - - - - - 89,472 Cost reimbursements 47,157 - - - - - 47,157 Trade sales - - 47,205 72,442 6,479 (12) 126,114 Sales of real estate inventory - 17,138 - - - - 17,138 Interest income 63,771 2,064 - 46 1,457 (3,600) 63,738 Net gains on sales of real estate assets - 4,798 - - - - 4,798 Other revenue 1,269 2,024 - 155 1,296 (462) 4,282 Total revenues 564,662 26,024 47,205 72,643 9,232 (4,074) 715,692 Costs and expenses: Cost of VOIs sold 19,838 - - - - - 19,838 Cost of other fee-based services 53,983 - - - - - 53,983 Cost reimbursements 47,157 - - - - - 47,157 Cost of trade sales - - 38,454 46,707 2,902 (12) 88,051 Cost of real estate inventory sold - 11,283 - - - - 11,283 Interest expense 25,470 - 497 238 8,127 (3,600) 30,732 Recoveries from loan losses, net - (7,236) - - - - (7,236) Asset impairments, net - 340 - 187 - - 527 Selling, general and administrative expenses 315,535 7,165 7,641 34,099 46,512 (462) 410,490 Total costs and expenses 461,983 11,552 46,592 81,231 57,541 (4,074) 654,825 Equity in net earnings of unconsolidated real estate joint ventures - 1,165 - - - - 1,165 Foreign exchange gain - - 91 - - - 91 Income (loss) before income taxes $ 102,679 15,637 704 (8,588) (48,309) - 62,123 Expenditures for property and equipment $ 24,347 298 447 4,330 3,894 - 33,316 Depreciation and amortization $ 9,087 283 869 4,346 806 - 15,391 Debt accretion and amortization $ 2,765 2 12 159 221 - 3,159 The table below sets forth the Company’s segment information for the nine months ended September 30, 2017 (in thousands): Reportable Segments BBX Corporate Segment Capital BBX Expenses Total Real Sweet & *As Bluegreen Estate Renin Holdings Other Eliminations Adjusted Revenues: Sales of VOIs $ 176,094 - - - - - 176,094 Fee-based sales commissions 179,046 - - - - - 179,046 Other fee-based services 83,442 - - - - - 83,442 Cost reimbursements 40,660 - - - - - 40,660 Trade sales - - 51,447 44,922 - - 96,369 Interest income 65,673 1,915 - 3 674 (5,200) 63,065 Net gains on sales of real estate assets - 1,668 - - - - 1,668 Other revenue (120) 3,023 - 27 1,079 (357) 3,652 Total revenues 544,795 6,606 51,447 44,952 1,753 (5,557) 643,996 Costs and expenses: Cost of VOIs sold 11,352 - - - - - 11,352 Cost of other fee-based services 48,663 - - - - - 48,663 Cost reimbursements 40,660 - - - - - 40,660 Cost of trade sales - - 41,332 32,441 - - 73,773 Interest expense 23,779 - 343 255 8,403 (5,200) 27,580 Recoveries from loan losses, net - (6,098) - - - - (6,098) Asset impairments, net - 1,278 - 273 - - 1,551 Net gains on cancellation of junior subordinated debentures - - - - (6,929) - (6,929) Reimbursement of litigation costs and penalty - - - - (11,719) - (11,719) Selling, general and administrative expenses 312,257 8,002 8,404 20,638 46,545 (357) 395,489 Total costs and expenses 436,711 3,182 50,079 53,607 36,300 (5,557) 574,322 Equity in net earnings of unconsolidated real estate joint ventures - 8,428 - - - - 8,428 Foreign exchange loss - - (312) - - - (312) Income (loss) before income taxes $ 108,084 11,852 1,056 (8,655) (34,547) - 77,790 Expenditures for segment fixed assets $ 9,380 257 2,454 1,144 923 - 14,158 Depreciation and amortization $ 7,089 480 712 2,509 544 - 11,334 Debt accretion and amortization $ 3,470 - 18 30 214 - 3,732 * See Note 1 for a summary of adjustments. |