Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v3.20.4
Discontinued Operations
12 Months Ended
Dec. 31, 2020
Discontinued Operations [Abstract]  
Discontinued Operations

22.  Discontinued Operations



In 2016, Food for Thought Restaurant Group (“FFTRG”), a wholly-owned subsidiary of BBX Capital, entered into area development and franchise agreements with MOD Pizza related to the development of up to approximately 60 MOD Pizza franchised restaurant locations throughout Florida, and through 2019, FFTRG had opened nine restaurant locations. As a result of FFTRG’s overall operating performance and the Company’s goal of streamlining its investment verticals, the Company entered into an agreement with MOD Pizza to terminate the area development and franchise agreements and transferred seven of its restaurant locations, including the related assets, operations, and lease obligations, to MOD Pizza in September 2019. In addition, the Company closed the remaining two locations and terminated the related lease agreements.



In connection with the transfer of the seven restaurant locations to MOD Pizza, the Company recognized an aggregate impairment loss of $4.0 million related to the disposal group, which included property and equipment, intangible assets, and net lease liabilities. In addition, prior to the transaction, the Company previously recognized $2.7 million of impairment losses associated with property and equipment at three restaurant locations. Accordingly, the Company recognized $6.7 million of impairment losses associated with its investment in MOD Pizza restaurant locations during the year ended December 31, 2019.



FFTRG’s operations as a franchisee of MOD Pizza are presented as discontinued operations in the Company’s consolidated financial statements.



The carrying amount of major classes of assets and liabilities included as part of discontinued operations is as follows (in thousands):







 

 

 

 

 

 



 

 



 

December 31,

 

December 31,



 

2020

 

2019

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

 —

 

 

35 

Operating lease assets

 

 

 —

 

 

772 

Other assets

 

 

 —

 

 

185 

Discontinued operations total assets

 

$

 —

 

 

992 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

 —

 

 

Accrued expenses

 

 

 —

 

 

134 

Operating lease liability

 

 

 —

 

 

905 

Discontinued operations total liabilities

 

$

 —

 

 

1,041 



The major components of loss from discontinued operations are as follows (in thousands):







 

 

 

 

 

 

 

 

 



 

 



 

For the Years Ended December 31,



 

2020

 

2019

 

2018

Revenues:

 

 

 

 

 

 

 

 

 

Trade sales

 

$

 —

 

 

6,044 

 

 

4,007 

Other revenue

 

 

 —

 

 

104 

 

 

87 

Total revenues

 

 

 —

 

 

6,148 

 

 

4,094 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

Cost of trade sales

 

 

 —

 

 

2,012 

 

 

1,438 

Depreciation, amortization and accretion, net

 

 

 —

 

 

691 

 

 

555 

Impairment losses

 

 

71 

 

 

6,749 

 

 

 —

Selling, general and administrative expenses

 

 

20 

 

 

6,139 

 

 

6,634 

Total costs and expenses

 

 

91 

 

 

15,591 

 

 

8,627 

Other revenue

 

 

 —

 

 

 

 

Pre-tax loss from discontinued operations

 

$

(91)

 

 

(9,434)

 

 

(4,529)



The following are the major components of the statement of cash flows from discontinued operations (in thousands):







 

 

 

 

 

 

 

 

 



 

 



 

For the Years Ended December 31,



 

2020

 

2019

 

2018

Operating activities:

 

 

 

 

 

 

 

 

 

Pre-tax loss from discontinued operations

 

$

(91)

 

 

(9,434)

 

 

(4,529)

Adjustment to reconcile pre-tax loss to net cash

 

 

 

 

 

 

 

 

 

used in operating activities:

 

 

 

 

 

 

 

 

 

Depreciation, amortization and accretion, net

 

 

 —

 

 

691 

 

 

555 

Impairment losses

 

 

71 

 

 

6,749 

 

 

 —

Decrease (increase) in trade inventory

 

 

 —

 

 

64 

 

 

(42)

Decrease in other assets

 

 

94 

 

 

522 

 

 

242 

Change in operating lease assets and liabilities

 

 

(113)

 

 

(88)

 

 

 —

Decrease in accounts payable

 

 

(2)

 

 

(187)

 

 

(16)

Decrease in accrued expenses

 

 

(134)

 

 

(1,201)

 

 

(138)

Net cash used in operating activities

 

$

(175)

 

 

(2,884)

 

 

(3,928)

Investing activities:

 

 

 

 

 

 

 

 

 

Cash paid for intangible assets

 

$

 —

 

 

(40)

 

 

(100)

Purchases of property and equipment

 

 

 —

 

 

(576)

 

 

(5,140)

Net cash used in investing activities

 

$

 —

 

 

(616)

 

 

(5,240)

Supplemental disclosure of non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

Operating lease assets recognized upon adoption of ASC 842

 

$

 —

 

 

6,878 

 

 

 —

Operating lease liabilities recognized upon adoption of ASC 842

 

 

 —

 

 

8,192 

 

 

 —