Annual report pursuant to Section 13 and 15(d)

Note 22 - Segment Reporting

v3.22.4
Note 22 - Segment Reporting
 12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

22. 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 (“CODM”) 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 the Company’s CODM, 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 impacted.

 

The Company’s three reportable segments are its principal investments: BBX Capital Real Estate, BBX Sweet Holdings, and Renin. See Note 1 for a description of the Company’s reportable segments.

 

In the segment information for the years ended December 31, 2022, 2021, and 2020, amounts set forth in the column entitled “Other” include the Company’s investments in various operating businesses, including 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 unallocated corporate general and administrative expenses, interest income on the note receivable from Bluegreen Vacations, and elimination adjustments related to transactions between consolidated subsidiaries that are required to be eliminated in consolidation.

 

The Company evaluates segment performance based on segment income or loss before income taxes.

 

The table below sets forth the Company’s segment information as of and for the year ended December 31, 2022 (in thousands):

 

   

BBX Capital Real Estate

    

BBX Sweet Holdings

    

Renin

    

Other

    

Reconciling Items and Eliminations

    

Segment Total

  

Revenues:

                                                

Trade sales

   $ —       139,718       131,951       8,470       (14 )     280,125  

Sales of real estate inventory

     27,794       —       —       —       —       27,794  

Interest income

     3,617       —       —       —       2,376       5,993  

Net gains on sales of real estate assets

     24,289       —       —       —       —       24,289  

Other revenue

     1,835       —       —       2,572       (563 )     3,844  

Total revenues

     57,535       139,718       131,951       11,042       1,799       342,045  

Costs and expenses:

                                                

Cost of trade sales

     —       83,307       127,623       2,805       (14 )     213,721  

Cost of real estate inventory sold

     11,463       —       —       —       —       11,463  

Interest expense

     —       1,015       3,588       2       (2,206 )     2,399  

Recoveries from loan losses, net

     (4,835 )     —       —       —       —       (4,835 )

Impairment losses

     311       238       —       —       —       549  

Selling, general and administrative expenses

     13,772       55,617       17,077       7,224       22,525       116,215  

Total costs and expenses

     20,711       140,177       148,288       10,031       20,305       339,512  

Operating income (losses)

     36,824       (459 )     (16,337 )     1,011       (18,506 )     2,533  

Equity in net earnings of unconsolidated real estate joint ventures

     38,414       —       —       —       —       38,414  

Other (expense) income

     (7 )     718       (57 )     4       306       964  

Foreign exchange (loss) gain

     —       (70 )     950       —       —       880  

Income (loss) before income taxes

   $ 75,231       189       (15,444 )     1,015       (18,200 )     42,791  

Total assets

   $ 225,786       161,337       102,601       7,134       65,983       562,841  

Expenditures for property and equipment

   $ —       11,383       1,653       110       1,593       14,739  

Depreciation and amortization

   $ (271 )     6,629       3,344       140       371       10,213  

Debt accretion and amortization

   $ 261       61       128       —       —       450  

Cash and cash equivalents

   $ 107,069       7,246       1,060       2,643       9,563       127,581  

Investments in and advances to unconsolidated real estate joint ventures

   $ 49,415       —       —       —       —       49,415  

Goodwill

   $ —       14,274       4,140       —       —       18,414  

Notes payable and other borrowings

   $ 1,946       18,150       47,838       9       (29,400 )     38,543  

 

     

 

The table below sets forth the Company’s segment information as of and for the year ended  December 31, 2021 (in thousands):

 

   

BBX Capital Real Estate

    

BBX Sweet Holdings

    

Renin

    

Other

    

Reconciling Items and Eliminations

    

Segment Total

  

Revenues:

                                                

Trade sales

   $ —       84,215       146,255       7,616       (8 )     238,078  

Sales of real estate inventory

     65,479       —       —       —       —       65,479  

Interest income

     2,048       36       —       —       4,329       6,413  

Net gains on sales of real estate assets

     643       —       —       —       —       643  

Other revenue

     1,504       —       —       2,045       (565 )     2,984  

Total revenues

     69,674       84,251       146,255       9,661       3,756       313,597  

Costs and expenses:

                                                

Cost of trade sales

     —       52,497       130,366       2,291       (8 )     185,146  

Cost of real estate inventory sold

     29,690       —       —       —       —       29,690  

Interest expense

     —       429       1,830       2       (822 )     1,439  

Recoveries from loan losses, net

     (7,774 )     —       —       —       —       (7,774 )

Impairment losses

     —       38       —       —       —       38  

Selling, general and administrative expenses

     7,587       31,524       15,857       5,978       15,068       76,014  

Total costs and expenses

     29,503       84,488       148,053       8,271       14,238       284,553  

Operating income (losses)

     40,171       (237 )     (1,798 )     1,390       (10,482 )     29,044  

Equity in net earnings of unconsolidated real estate joint ventures

     18,154       —       —       —       —       18,154  

Other (expense) income

     (14 )     131       —       —       224       341  

Gain on the consolidation of IT'SUGAR, LLC

     —       15,890       —       —       —       15,890  

Foreign exchange gain

     —       —       812       —       —       812  

Income (loss) before income taxes

   $ 58,311       15,784       (986 )     1,390       (10,258 )     64,241  

Total assets

   $ 179,619       143,916       101,647       7,745       100,428       533,355  

Expenditures for property and equipment

   $ —       4,283       3,099       185       959       8,526  

Depreciation and amortization

   $ —       3,181       3,037       118       122       6,458  

Debt accretion and amortization

   $ 737       21       113       —       —       871  

Cash and cash equivalents

   $ 66,558       9,792       1,369       2,937       37,389       118,045  

Investments in and advances to unconsolidated real estate joint ventures

   $ 52,966       —       —       —       —       52,966  

Goodwill

   $ —       14,274       4,140       —       —       18,414  

Notes payable and other borrowings

   $ 7,312       14,421       44,124       26       (11,000 )     54,883  

 

 

(1)

The above segment information includes the operations of IT’SUGAR as of June 17, 2021, the date the Company reconsolidated IT’SUGAR.

 

The table below sets forth the Company’s segment information as of and for the year ended  December 31, 2020 (in thousands):

 

   

BBX Capital Real Estate

    

BBX Sweet Holdings

    

Renin

    

Other

    

Reconciling Items and Eliminations

    

Segment Total

  

Revenues:

                                                

Trade sales

   $ —       49,155       93,036       5,019       —       147,210  

Sales of real estate inventory

     20,363       —       —       —       —       20,363  

Interest income

     1,240       29       —       1       1,129       2,399  

Net gains on sales of real estate assets

     255       —       —       —       —       255  

Other revenue

     1,454       281       —       1,461       (194 )     3,002  

Total revenues

     23,312       49,465       93,036       6,481       935       173,229  

Costs and expenses:

                                                

Cost of trade sales

     —       41,482       83,563       1,983       —       127,028  

Cost of real estate inventory sold

     13,171       —       —       —       —       13,171  

Interest expense

     —       193       615       10       (581 )     237  

Recoveries from loan losses, net

     (8,876 )     —       —       —       —       (8,876 )

Impairment losses

     2,742       25,303       —       2,727       —       30,772  

Selling, general and administrative expenses

     6,758       26,855       11,735       4,684       15,940       65,972  

Total costs and expenses

     13,795       93,833       95,913       9,404       15,359       228,304  

Operating income (losses)

     9,517       (44,368 )     (2,877 )     (2,923 )     (14,424 )     (55,075 )

Equity in net earnings of unconsolidated real estate joint ventures

     465       —       —       —       —       465  

Loss on the deconsolidation of IT'SUGAR, LLC

     —       (3,326 )     —       —       —       (3,326 )

Other income (expense)

     6       221       (3 )     8       58       290  

Foreign exchange loss

     —       —       (692 )     —       —       (692 )

Income (loss) before income taxes

   $ 9,988       (47,473 )     (3,572 )     (2,915 )     (14,366 )     (58,338 )

Total assets

   $ 165,732       28,668       104,654       7,096       141,506       447,656  

Expenditures for property and equipment

   $ —       3,155       2,118       72       —       5,345  

Depreciation and amortization

   $ —       4,244       1,380       106       104       5,834  

Debt accretion and amortization

   $ 287       168       243       —       —       698  

Cash and cash equivalents

   $ 31,133       1,163       2,438       1,539       53,764       90,037  

Real estate equity method investments

   $ 58,010       —       —       —       —       58,010  

Goodwill

   $ —       —       8,277       —       —       8,277  

Notes payable and other borrowings

   $ 26,762       1,417       45,261       43       —       73,483  

 

 

(2)

The above segment information excludes the operations of IT’SUGAR as of September 22, 2020, the date the Company deconsolidated IT’SUGAR.