| Segment Reporting |
17. 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 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 materially impacted.
The Company’s reportable segments are its principal investments: Bluegreen, BBX Capital Real Estate, Renin, and IT’SUGAR. See Note 1 for a description of these segments.
In the segment information for the three months ended March 31, 2019 and 2018, amounts set forth in the column entitled “Other” include the Company’s 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 corporate selling, general, and administrative expenses, interest expense associated with Woodbridge’s junior subordinated debentures and BBX Capital’s $50.0 million revolving line of credit, and elimination entries.
The Company evaluates segment performance based on segment income before income taxes.
The table below sets forth the Company’s segment information as of and for the three months ended March 31, 2019 (in thousands):
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Revenues:
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Bluegreen
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BBX Capital Real Estate
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Renin
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IT'SUGAR
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Other
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Reconciling Items and Eliminations
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Segment Total
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Sales of VOIs
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$
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51,731
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-
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-
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-
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-
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-
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51,731
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Fee-based sales commissions
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45,212
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-
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-
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-
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-
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-
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45,212
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Other fee-based services
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29,568
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-
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-
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-
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-
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-
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29,568
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Cost reimbursements
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20,236
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-
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-
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-
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-
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-
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20,236
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Trade sales
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-
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-
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19,343
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17,215
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9,435
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(9)
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45,984
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Sales of real estate inventory
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-
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4,236
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-
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-
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-
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-
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4,236
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Interest income
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22,008
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202
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-
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-
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39
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(834)
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21,415
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Net gains on sales of real estate assets
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-
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1,332
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-
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-
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-
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-
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1,332
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Other revenue
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89
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846
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-
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210
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470
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(272)
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1,343
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Total revenues
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168,844
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6,616
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19,343
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17,425
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9,944
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(1,115)
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221,057
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Costs and expenses:
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Cost of VOIs sold
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3,848
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-
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-
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-
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-
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-
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3,848
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Cost of other fee-based services
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22,868
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-
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-
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-
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-
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-
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22,868
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Cost reimbursements
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20,236
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-
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-
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-
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-
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-
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20,236
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Cost of trade sales
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-
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-
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15,117
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11,220
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5,962
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(9)
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32,290
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Cost of real estate inventory sold
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-
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2,643
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-
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-
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-
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-
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2,643
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Interest expense
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9,506
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-
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140
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22
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22
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1,458
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11,148
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Recoveries from loan losses, net
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-
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(961)
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-
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-
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-
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-
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(961)
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Impairment losses
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-
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-
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-
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-
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618
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-
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618
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Selling, general and administrative expenses
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90,214
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2,494
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3,035
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8,106
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6,041
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12,103
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121,993
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Total costs and expenses
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146,672
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4,176
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18,292
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19,348
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12,643
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13,552
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214,683
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Equity in net losses of unconsolidated real estate joint ventures
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-
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(17)
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-
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-
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-
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-
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(17)
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Foreign exchange gain
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-
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-
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5
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-
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-
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-
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5
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Income (loss) before income taxes
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22,172
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2,423
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1,056
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(1,923)
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(2,699)
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(14,667)
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6,362
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Total assets
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$
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1,347,093
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175,195
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34,856
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140,565
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46,088
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16,879
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1,760,676
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Expenditures for property and equipment
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$
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7,507
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3
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115
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1,220
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822
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26
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9,693
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Depreciation and amortization
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$
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3,365
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93
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298
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1,060
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585
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112
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5,513
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Debt accretion and amortization
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$
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1,121
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86
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8
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56
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1
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90
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1,362
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Cash and cash equivalents
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$
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189,875
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18,846
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-
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3,943
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8,295
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75,358
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296,317
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Equity method investments
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$
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-
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67,382
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-
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-
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-
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-
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67,382
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Goodwill
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$
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-
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-
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-
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35,167
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2,081
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-
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37,248
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Receivable-backed notes payable
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$
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437,927
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-
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-
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-
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-
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-
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437,927
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Notes payable and other borrowings
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$
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125,436
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31,959
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8,059
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2,106
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1,481
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-
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169,041
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Junior subordinated debentures
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$
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71,504
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-
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-
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-
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-
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65,119
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136,623
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The table below sets forth the Company’s segment information as of and for the three months ended March 31, 2018 (in thousands):
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Bluegreen
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BBX Capital Real Estate
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Renin
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IT'SUGAR
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Other
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Reconciling Items and Eliminations
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Segment Total
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Revenues:
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Sales of VOIs
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$
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56,141
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-
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-
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-
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-
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-
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56,141
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Fee-based sales commissions
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45,854
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-
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-
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-
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-
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-
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45,854
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Other fee-based services
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28,024
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-
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-
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-
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-
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-
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28,024
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Cost reimbursements
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16,200
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-
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-
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-
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-
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-
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16,200
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Trade sales
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-
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-
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14,985
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16,681
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6,736
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(2)
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38,400
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Sales of real estate inventory
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-
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6,409
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-
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-
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-
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-
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6,409
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Interest income
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21,122
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1,534
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-
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1
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31
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(771)
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21,917
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Net gains on sales of real estate assets
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-
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4,069
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1
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-
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-
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-
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4,070
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Other revenue
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181
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739
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-
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18
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|
304
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(193)
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1,049
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Total revenues
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167,522
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12,751
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14,986
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16,700
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7,071
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(966)
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218,064
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Costs and expenses:
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Cost of VOIs sold
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1,812
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-
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-
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-
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-
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-
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1,812
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Cost of other fee-based services
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17,411
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-
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-
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|
-
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|
-
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|
-
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17,411
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Cost reimbursements
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16,200
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|
-
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|
-
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|
-
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|
-
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|
-
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16,200
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Cost of trade sales
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-
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|
-
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12,150
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10,559
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5,209
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(2)
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27,916
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Cost of real estate inventory sold
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|
-
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|
4,247
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|
-
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|
-
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|
-
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|
-
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4,247
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Interest expense
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7,767
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|
-
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|
158
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|
-
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|
89
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|
1,177
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|
9,191
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Recoveries from loan losses, net
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|
-
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(4,813)
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|
-
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|
-
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|
-
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|
-
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(4,813)
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Impairment losses
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|
-
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|
45
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|
-
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|
-
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|
187
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|
-
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|
232
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Selling, general and administrative expenses
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|
93,549
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|
2,485
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|
2,760
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|
8,075
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|
5,081
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|
12,948
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|
124,898
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Total costs and expenses
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136,739
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|
1,964
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|
15,068
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18,634
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10,566
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|
14,123
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|
197,094
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Equity in net earnings of unconsolidated real estate joint ventures
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|
-
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|
1,280
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|
-
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|
-
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|
-
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|
-
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1,280
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Foreign exchange loss
|
|
-
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|
-
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|
52
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|
-
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|
-
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|
-
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|
52
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Income (loss) before income taxes
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$
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30,783
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|
12,067
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(30)
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(1,934)
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(3,495)
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(15,089)
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22,302
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Total assets
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$
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1,217,976
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|
138,345
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|
35,330
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|
70,238
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|
33,724
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|
86,601
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1,582,214
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|
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|
|
|
|
|
|
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Expenditures for property and equipment
|
|
5,462
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|
23
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|
107
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|
1,089
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|
1,392
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|
2
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|
8,075
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Depreciation and amortization
|
|
2,927
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|
101
|
|
285
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|
1,094
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|
375
|
|
142
|
|
4,924
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|
Debt accretion and amortization
|
|
1,019
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|
-
|
|
4
|
|
45
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|
25
|
|
-
|
|
1,093
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Cash and cash equivalents
|
|
167,845
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|
6,421
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|
-
|
|
4,903
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|
8,954
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|
161,822
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|
349,945
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Equity method investments
|
|
-
|
|
48,841
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|
-
|
|
-
|
|
_-
|
|
-
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|
48,841
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Goodwill
|
|
-
|
|
-
|
|
-
|
|
35,167
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|
4,315
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|
-
|
|
39,482
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Receivable-backed notes payable
|
|
413,334
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|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
413,334
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Notes payable and other borrowings
|
|
83,764
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|
20,858
|
|
13,689
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|
-
|
|
7,013
|
|
-
|
|
125,324
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|
Junior subordinated debentures
|
|
70,677
|
|
-
|
|
-
|
|
-
|
|
-
|
|
65,048
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|
135,725
|
|