Quarterly report pursuant to Section 13 or 15(d)

Certain Relationships And Related Party Transactions

v3.21.2
Certain Relationships And Related Party Transactions
9 Months Ended
Sep. 30, 2021
Certain Relationships And Related Party Transactions [Abstract]  
Certain Relationships And Related Party Transactions 15. 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 80% of BBX Capital’s total voting power. Mr. Alan B. Levan also serves as the Chairman, Chief Executive Officer, and President of Bluegreen Vacations, and Mr. Abdo also serves as Vice Chairman of Bluegreen Vacations. Additionally, Mr. Jarett Levan and Mr. Wise serve as directors of Bluegreen Vacations.

Included in selling, general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive income during the three and nine months ended September 30, 2021 was $0 and $0.2 million, respectively, of rent for office space provided by Bluegreen Vacations to the Company. Included in selling, general and administrative expenses during the three and nine months ended September 30, 2020 was $0.6 million and $1.9 million, respectively, for management advisory services and employer provided medical insurance provided by Bluegreen Vacations to the Company. The Company reimbursed Bluegreen Vacations the actual cost of providing the services.

The Company provides management services to the Altman Companies for which the Company recognized $0.1 million and 0.2 million, net of services provided to the Company by Altman Companies, during the three and nine months ended September 30, 2021 and 2020 in return for such services. The Company also provides administrative services to Bluegreen Vacations and recognized $0.2 million and $0.6 million during the three and nine months ended September 30, 2021, respectively, in return for such services.

Included in other revenues in the Company’s condensed consolidated statements of operations and comprehensive loss or income for the three and nine months ended September 30, 2021 was $0.2 million and $0.4 million, respectively, for providing risk management consulting services to Bluegreen Vacations, and $0.3 million and $0.6 million, respectively, for the three and nine months ended September 30, 2020. Included in interest income is $0.1 million of interest income on loans receivable from IT’SUGAR for the three months ended September 30, 2021 and $0.2 million from June 17, 2021 to September 30, 2021, which was eliminated in consolidation. Interest income of $0.1 million on loans receivable from IT’SUGAR for the period beginning on January 1, 2021 to June 16, 2021 was not eliminated in consolidation as the Company did not consolidate IT’SUGAR during this period. See Note 17 for further discussion.

During the three and nine months ended September 30, 2020, expenses related to certain support functions provided by Bluegreen Vacations, 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 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 Bluegreen Vacations 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 and nine months ended September 30, 2020 were $4.8 million and $12.7 million, respectively. The allocated support function costs were recognized as contributed capital in the Company’s condensed consolidated statements of financial condition for the three and nine months ended September 30, 2020.

As further described in Note 1, in connection with the spin-off, Bluegreen Vacations 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 and nine months ended September 30, 2021 was $1.1 million and $3.4 million, respectively, relating to accrued interest on the $75.0 million note receivable from Bluegreen Vacations.

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

For the Three Months Ended

For the Nine Months Ended

September 30, 2020

September 30, 2020

Cash pooling

$

(5,426)

81,581

Corporate overhead allocations

4,767

12,694

Asset transfers

75,175

75,320

Net transfers from Bluegreen Vacations

$

74,516

169,595