Segment Reporting | 23. 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 (“CODM”) 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 the 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. During 2018, the Company completed a reorganization of various operating businesses in the confectionery industry, including the closure of manufacturing facilities and elimination of corporate personnel and infrastructure, which is anticipated to result in significantly reduced revenues and operations associated with these businesses. In addition, the Company has made additional investments in IT’SUGAR, including capital expenditures associated with new stores in high profile locations and the hiring of new senior management personnel. As these activities have ultimately resulted in IT’SUGAR becoming the Company’s principal investment in the confectionery industry, internal management reports were modified to present the standalone performance of IT’SUGAR and exclude the other operating businesses in the confectionery industry, and the CODM began utilizing the new reporting structure to manage operations and allocate resources. As a consequence, the Company determined that it was appropriate to report the operations of IT’SUGAR as a separate reportable segment together with the Company’s three other reportable segments as follows: Bluegreen, BBX Capital Real Estate, Renin, and IT’SUGAR. The Company’s segment information for the years ended December 31, 2017 and 2016 has been updated retrospectively to conform to the current presentation. In the segment information for the years ended December 31, 2018, 2017 and 2016, amounts set forth in the column entitled “Other” include the Company investments in various operating businesses, including its pizza restaurant operations as a franchisee of MOD Pizza, the remaining operating businesses in the confectionery industry, and a controlling financial interest in a restaurant acquired in connection with a loan receivable default. The amounts set forth in the column entitled “Reconciling Items and Eliminations” include interest expense associated with Woodbridge’s junior subordinated debentures, unallocated corporate overhead, and elimination entries. 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 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 is engaged in the acquisition, development, construction, ownership, financing, and management of real estate and investments in real estate joint ventures. Included in BBX Capital Real Estate’s investments in real estate joint ventures is a 50% equity interest in The Altman Companies, LLC, a developer and manager of multifamily apartment communities. BBX Capital Real Estate also manages the legacy assets acquired in connection with BCC’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 sliding doors, door systems and hardware, and home décor products and operates through its headquarters in Canada and two manufacturing and distribution facilities in Canada and the United States. In addition to its own manufacturing, Renin also sources various products and materials from China. During 2018, total revenues for the Renin reportable segment include $31.5 million of trade sales to two major customers and their affiliates. Renin’s revenues generated outside the United States totaled $ 23.2 million for the year ended December 31, 2018 , and its properties and equipment located outside the United States had a carrying amount of $2.95 million as of December 31, 2018. IT’SUGAR IT’SUGAR is a specialty candy retailer which operates approximately 100 retail locations in over 25 states and Washington, D.C., and its products include bulk candy, giant candy packaging, and novelty items that are purchased from third-party vendors and sold at its retail locations, which include a mix of high-traffic resort and entertainment, lifestyle, mall/outlet, and urban locations across the United States. The table below sets forth the Company’s segment information as of and for the year ended December 31, 2018 (in thousands): Bluegreen BBX Capital Real Estate Renin IT'SUGAR Other Reconciling Items and Eliminations Segment Total Revenues: Sales of VOIs $ 254,225 - - - - - 254,225 Fee-based sales commissions 216,422 - - - - - 216,422 Other fee-based services 118,024 - - - - - 118,024 Cost reimbursements 62,534 - - - - - 62,534 Trade sales - - 68,417 79,618 31,472 (21) 179,486 Sales of real estate inventory - 21,771 - - - - 21,771 Interest income 85,914 2,277 - 1 147 (2,838) 85,501 Net gains on sales of real estate assets - 4,563 - - - - 4,563 Other revenue 1,201 2,653 - 159 1,889 (835) 5,067 Total revenues 738,320 31,264 68,417 79,778 33,508 (3,694) 947,593 Costs and expenses: Cost of VOIs sold 23,813 - - - - - 23,813 Cost of other fee-based services 72,968 - - - - - 72,968 Cost reimbursements 62,534 - - - - - 62,534 Cost of trade sales - - 55,483 46,718 23,468 (21) 125,648 Cost of real estate inventory sold - 14,116 - - - - 14,116 Interest expense 34,709 - 638 40 275 6,276 41,938 Recoveries from loan losses, net - (8,603) - - - - (8,603) Impairment losses - 521 - - 4,147 - 4,668 Reimbursements of litigation costs and penalty - - - - - (600) (600) Selling, general and administrative expenses 415,403 9,210 9,903 35,404 22,398 45,623 537,941 Total costs and expenses 609,427 15,244 66,024 82,162 50,288 51,278 874,423 Equity in net earnings of unconsolidated real estate joint ventures - 14,194 - - - - 14,194 Foreign exchange gain - - 68 - - - 68 Income (loss) before income taxes $ 128,893 30,214 2,461 (2,384) (16,780) (54,972) 87,432 Total assets $ 1,346,467 165,109 32,354 70,693 33,112 57,285 1,705,020 Expenditures for property and equipment 32,539 318 796 6,022 5,875 - 45,550 Depreciation and amortization 12,392 374 1,159 4,556 2,513 - 20,994 Debt accretion and amortization 4,212 3 17 184 329 - 4,745 Cash and cash equivalents 219,408 16,103 - 3,883 9,126 117,785 366,305 Equity method investments - 64,738 - - - 64,738 Goodwill - - - 35,167 2,081 - 37,248 Receivable-backed notes payable 458,931 - - - - - 458,931 Notes payable and other borrowings 133,391 27,333 8,117 556 1,490 30,000 200,887 Junior subordinated debentures 71,323 - - - - 65,102 136,425 The table below sets forth the Company’s segment information as of and for the year ended December 31, 2017 (in thousands): Bluegreen BBX Capital Real Estate Renin IT'SUGAR Other Reconciling Items and Eliminations Segment Total Revenues: Sales of VOIs $ 242,017 - - - - - 242,017 Fee-based sales commissions 229,389 - - - - - 229,389 Other fee-based services 111,819 - - - - - 111,819 Cost reimbursements 52,639 - - - - - 52,639 Trade sales - - 68,935 46,765 26,385 - 142,085 Interest income 86,876 2,225 - 2 74 (5,469) 83,708 Net gains on sales of real estate assets - 1,451 - - - - 1,451 Other revenue 312 5,145 - 64 1,540 (599) 6,462 Total revenues 723,052 8,821 68,935 46,831 27,999 (6,068) 869,570 Costs and expenses: Cost of VOIs sold 17,679 - - - - - 17,679 Cost of other fee-based services 64,560 - - - - - 64,560 Cost reimbursements 52,639 - - - - - 52,639 Cost of trade sales - - 54,941 25,744 25,233 - 105,918 Interest expense 29,977 - 509 - 335 4,384 35,205 Recoveries from loan losses, net - (7,495) - - - - (7,495) Impairment losses - 1,646 - - 5,785 - 7,431 Net gains on cancellation of junior subordinated debentures - - - - - (6,929) (6,929) Reimbursements of litigation costs and penalty - - - - (13,169) (13,169) Selling, general and administrative expenses 421,199 11,127 11,112 18,489 18,698 52,853 533,478 Total costs and expenses 586,054 5,278 66,562 44,233 50,051 37,139 789,317 Equity in net earnings of unconsolidated real estate joint ventures - 12,541 - - - - 12,541 Foreign exchange loss - - (193) - - - (193) Income (loss) before income taxes $ 136,998 16,084 2,180 2,598 (22,052) (43,207) 92,601 Total assets $ 1,231,481 166,548 36,189 71,702 32,825 66,936 1,605,681 Expenditures for property and equipment 14,115 308 2,786 1,221 3,615 - 22,045 Depreciation and amortization 9,632 581 1,000 2,324 2,512 - 16,049 Debt accretion and amortization 4,478 - - - 204 - 4,682 Cash and cash equivalents 197,337 8,636 863 6,877 10,382 138,431 362,526 Equity method investments - 51,234 - - - 51,234 Goodwill - - - 35,167 4,315 - 39,482 Receivable-backed notes payable 421,118 - - - - - 421,118 Notes payable and other borrowings 100,194 24,215 12,890 - 6,815 - 144,114 Junior subordinated debentures 70,384 - - - - 65,030 135,414 The table below sets forth the Company’s segment information as of and for the year ended December 31, 2016 (in thousands): Reportable Segments BBX Capital Reconciling Real Items and Segment Bluegreen Estate Renin IT'SUGAR Other Eliminations Total Revenues: Sales of VOIs $ 273,873 - - - - - 273,873 Fee-based sales commissions 201,829 - - - - - 201,829 Other fee-based services 103,448 - - - - - 103,448 Cost reimbursements 49,557 - - - - - 49,557 Trade sales - - 65,068 - 30,771 - 95,839 Interest income 89,511 3,606 - - 14 (7,384) 85,747 Net gains on sales of real estate assets - 3,213 - - - - 3,213 Other revenue 1,724 5,656 - - 1,441 (174) 8,647 Total revenues 719,942 12,475 65,068 - 32,226 (7,558) 822,153 Costs and Expenses: Cost of VOIs sold 28,829 - - - - - 28,829 Cost of other fee-based services 61,149 - - - - - 61,149 Cost reimbursements 49,557 - - - - - 49,557 Cost of trade sales - - 51,572 - 28,791 - 80,363 Interest expense 30,853 - 313 - 409 4,462 36,037 Recoveries from loan losses, net - (20,508) - - - - (20,508) Impairment losses - 2,304 - - 2,352 - 4,656 Selling, general and administrative expenses 419,930 11,864 12,545 - 16,150 54,992 515,481 Total costs and expenses 590,318 (6,340) 64,430 - 47,702 59,454 755,564 Equity in net earnings of unconsolidated real estate joint ventures - 12,178 - - - - 12,178 Foreign exchange gain - - 219 - - - 219 Income (loss) before income taxes $ 129,624 30,993 857 - (15,476) (67,012) 78,986 Total assets $ 1,123,950 186,132 28,913 - 46,302 51,993 1,437,290 Expenditures for property and equipment 9,605 266 1,718 - 1,350 - 12,939 Depreciation and amortization 9,536 603 661 - 1,949 - 12,749 Debt accretion and amortization 4,736 - 83 - 102 - 4,921 Cash and cash equivalents 144,120 13,628 (288) - 19,364 123,037 299,861 Equity method investments - 49,392 - - - - 49,392 Goodwill - - - - 6,731 - 6,731 Receivable-backed notes payable 414,989 - - - - - 414,989 Notes payable and other borrowings 98,382 20,743 9,692 - 4,973 - 133,790 Junior subordinated debentures 69,044 - - - - 83,323 152,367 |