Quarterly report pursuant to Section 13 or 15(d)

Certain Relationships And Related Party Transactions

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Certain Relationships And Related Party Transactions
3 Months Ended
Mar. 31, 2021
Certain Relationships And Related Party Transactions [Abstract]  
Certain Relationships And Related Party Transactions

14.    Certain Relationships and Related Party Transactions



The Company may be deemed to be controlled by Alan B. Levan, the Company’s Chairman, John E. Abdo, the Company’s Vice Chairman, Jarett S. Levan, the Company’s Chief Executive Officer and President, and Seth M. Wise, the Company’s Executive Vice President. Together, they may be deemed to beneficially own shares of BBX Capital’s Class A Common Stock and Class B Common Stock representing approximately 79% of BBX Capital’s total voting power. Mr. Alan B. Levan also serves as the Chairman, Chief Executive Officer, and President of BVH and Bluegreen, and Mr. Abdo also serves as Vice Chairman of BVH and Bluegreen. Additionally, Mr. Jarett Levan and Mr. Wise serve as directors of BVH and Bluegreen.



Included in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive income during the three months ended March 31, 2021 was $0.2 million of rent for office space provided by BVH to the Company. Included in selling, general and administrative expenses during the three months ended March 31, 2020 was $0.6 million for management advisory services and employer provided medical insurance provided by BVH to the Company. The Company reimbursed BVH the actual cost of providing the services.



The Company also received $60,000 and $34,000 for providing management services to the Altman Companies during the three months ended March 31, 2021 and 2020, respectively, and received $0.1 million and $0.1 million for providing administrative services to Bluegreen and BVH, respectively, during the three months ended March 31, 2021. 



Included in other revenues in the Company’s condensed consolidated statements of operations and comprehensive loss or income for each of the three months ended March 31, 2021 and 2020 was $0.1 million for providing risk management consulting services to Bluegreen, and $47,000 for providing risk management consulting services to BVH for the three months ended March 31, 2020.



During the three months ended March 31, 2020, expenses related to certain support functions paid for by BVH, including executive services, treasury, tax, accounting, legal, internal audit, human resources, public and investor relations, general management, shared information technology systems, corporate governance activities, and centralized managed employee benefit arrangements, were allocated to the Company on the basis of direct usage when identifiable, while the remainder of the expenses, including costs related to executive compensation, were allocated primarily on a pro-rata basis of combined revenues and equity in earnings of unconsolidated joint ventures of BVH and its subsidiaries. The expenses related to these support functions allocated to the Company and included in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2020 were $3.8 million. The allocated support function costs were recognized as contributed capital in the Company’s condensed consolidated statements of financial condition for the three months ended March 31, 2020.



As further described in Note 1, in connection with the spin-off, BVH issued a $75.0 million note payable to BBX Capital that accrues interest at a rate of 6% per annum and requires payments of interest on a quarterly basis. Included in interest income in the Company’s condensed consolidated statement of operations and comprehensive income for the three months ended March 31, 2021 was $1.1 million relating to accrued interest on the $75.0 million note receivable from BVH.



The components of net transfers from BVH in the condensed consolidated statement of changes in equity consisted of the following (in thousands):













 

 

 



 

 

 



 

For the Three Months Ended



 

March 31,



 

2020

Cash pooling

 

$

(355)

Corporate overhead allocations

 

 

3,803 

Net transfers from BVH

 

$

3,448