Annual report pursuant to Section 13 and 15(d)

Note 18 - Noncontrolling Interests and Redeemable Noncontrolling Interest

v3.22.4
Note 18 - Noncontrolling Interests and Redeemable Noncontrolling Interest
12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Noncontrolling Interest Disclosure [Text Block]

18. Noncontrolling Interests and Redeemable Noncontrolling Interest

 

Redeemable Noncontrolling Interest

 

The redeemable noncontrolling interest included in the Company’s consolidated statements of financial condition as of December 31, 2022 and 2021 of $4.4 million and $1.1 million, respectively, is comprised of a redeemable noncontrolling interest associated with IT’SUGAR. The Company owns over 90% of IT’SUGAR’s Class B Units, while the remaining Class B units are a noncontrolling interest held by an executive officer of IT’SUGAR and may be redeemed for cash at the holder’s option upon a contingent event outside of the Company’s control.

 

As a result of the filing of the Bankruptcy Cases by IT’SUGAR and its subsidiaries, the Company deconsolidated IT’SUGAR as of September 22, 2020 and derecognized the related redeemable noncontrolling interest in IT’SUGAR. However, as a result of IT’SUGAR emerging from the Bankruptcy Cases in June 2021 and the revesting of BBX Sweet Holdings’ equity interests in IT’SUGAR, the Company consolidated the results of IT’SUGAR into its consolidated financial statements as of June 17, 2021 and again recognized the redeemable noncontrolling interest in IT'SUGAR as of that date.

 

During the period from January 1, 2020 to September 22, 2020, the Company’s consolidated financial statements included the results of operations and financial position of IT’SUGAR, a majority-owned subsidiary in which it held a controlling financial interest, and as a result, the Company was required to attribute net income or loss to a redeemable noncontrolling interest in IT’SUGAR during such periods. The net loss attributable to the redeemable noncontrolling interest in IT’SUGAR was $4.1 million for the period from January 1, 2020 to September 22, 2020. As a result of the filing of the Bankruptcy Cases by IT’SUGAR and its subsidiaries, the Company deconsolidated IT’SUGAR as of September 22, 2020 and derecognized the related redeemable noncontrolling interest in IT’SUGAR. However, as a result of IT’SUGAR emerging from the Bankruptcy Cases in June 2021 and the revesting of BBX Sweet Holdings’ equity interest in IT’SUGAR, the Company consolidated the results of IT’SUGAR into its consolidated financial statements as of June 17, 2021 and is again attributing net income or loss to the redeemable noncontrolling interest in IT’SUGAR as of and subsequent to that date. The net income (loss) attributable to the redeemable noncontrolling interest in IT’SUGAR was $20,000, $0.1 million and ($4.1 million) for years ended December 31, 2022, 2021 and 2020.

 

Other Noncontrolling Interest

 

The noncontrolling interests included in the Company’s consolidated statements of financial condition as of December 31, 2022 and 2021 of $0.2 million and $1.1 million, respectively, are comprised of (i) a noncontrolling equity interest in a restaurant the Company acquired through foreclosure and (ii) as of December 31, 2021, an $0.8 million noncontrolling interest in IT’SUGAR FL II, LLC. In October 2020, the Company acquired an additional 28% equity interest in the restaurant, which decreased the noncontrolling interests from 47% at  December 31, 2020 to 19% as of December 31, 2022 and 2021.

 

IT’SUGAR FL II, LLC operates IT’SUGAR’s location in Hawaii and was a consolidated variable interest entity. In December 2022, IT'SUGAR acquired the noncontrolling interest in IT’SUGAR FL II, LLC and IT’SUGAR FL II, LLC was a wholly owned subsidiary of IT'SUGAR as of December 31, 2022.  

 

During the years ended December 31, 2022, 2021 and 2020, the Company attributed net income (loss) to the other noncontrolling interests of ($0.4 million), $14,000, and ($0.7 million), respectively.