| Segment Reporting |
15. 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 materially impacted.
The Company’s reportable segments are its principal holdings: 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 three and nine months ended September 30, 2020 and 2019, 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.
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 three months ended September 30, 2020 (in thousands):
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Revenues:
|
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|
BBX Capital Real Estate
|
|
BBX Sweet Holdings
|
|
Renin
|
|
Other
|
|
Reconciling Items and Eliminations
|
|
Segment Total
|
|
Trade sales
|
|
$
|
—
|
|
|
15,166
|
|
|
19,662
|
|
|
864
|
|
|
—
|
|
|
35,692
|
|
Sales of real estate inventory
|
|
|
4,970
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,970
|
|
Interest income
|
|
|
419
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(34)
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|
|
387
|
|
Net gains on sales of real estate assets
|
|
|
164
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
164
|
|
Other revenue
|
|
|
329
|
|
|
77
|
|
|
—
|
|
|
610
|
|
|
(24)
|
|
|
992
|
|
Total revenues
|
|
|
5,882
|
|
|
15,245
|
|
|
19,662
|
|
|
1,474
|
|
|
(58)
|
|
|
42,205
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of trade sales
|
|
|
—
|
|
|
11,678
|
|
|
15,927
|
|
|
376
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|
|
—
|
|
|
27,981
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|
Cost of real estate inventory sold
|
|
|
3,367
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|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,367
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|
Interest expense
|
|
|
—
|
|
|
54
|
|
|
53
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|
|
4
|
|
|
(111)
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|
-
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|
Recoveries from loan losses, net
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(807)
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|
|
—
|
|
|
—
|
|
|
—
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|
|
—
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|
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(807)
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Impairment losses
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
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|
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—
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|
Selling, general and administrative expenses
|
|
|
1,715
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|
|
8,483
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|
|
2,135
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|
|
280
|
|
|
5,497
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|
|
18,110
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Total costs and expenses
|
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4,275
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|
|
20,215
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|
18,115
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|
660
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5,386
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48,651
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Equity in net loss of unconsolidated real estate joint ventures
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(646)
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—
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—
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|
|
—
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|
|
—
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(646)
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Loss on the deconsolidation of IT'SUGAR, LLC
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—
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|
|
(3,326)
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|
|
—
|
|
|
—
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|
|
—
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|
|
(3,326)
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Other income
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|
|
—
|
|
|
81
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|
|
—
|
|
|
—
|
|
|
—
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|
81
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Foreign exchange loss
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—
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|
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—
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(58)
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—
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|
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—
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(58)
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Income (loss) before income taxes
|
|
$
|
961
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(8,215)
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1,489
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|
814
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(5,444)
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(10,395)
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Total assets
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$
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160,442
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26,108
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36,894
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6,707
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|
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157,296
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387,447
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Expenditures for property and equipment
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|
$
|
—
|
|
|
196
|
|
|
247
|
|
|
15
|
|
|
—
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|
|
458
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|
Depreciation and amortization
|
|
$
|
—
|
|
|
1,323
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|
|
260
|
|
|
26
|
|
|
—
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|
|
1,609
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|
Debt accretion and amortization
|
|
$
|
70
|
|
|
5
|
|
|
4
|
|
|
—
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|
|
—
|
|
|
79
|
|
Cash and cash equivalents
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|
$
|
24,066
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|
|
610
|
|
|
1,168
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|
|
941
|
|
|
69,807
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|
|
96,592
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|
Real estate equity method investments
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|
$
|
60,648
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|
|
—
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|
|
—
|
|
|
—
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|
|
—
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|
|
60,648
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|
Goodwill
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$
|
—
|
|
|
—
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|
|
—
|
|
|
—
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|
|
—
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|
|
—
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Notes payable and other borrowings
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|
$
|
29,597
|
|
|
1,427
|
|
|
4,929
|
|
|
47
|
|
|
—
|
|
|
36,000
|
The table below sets forth the Company’s segment information as of and for the three months ended September 30, 2019 (in thousands):
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BBX Capital Real Estate
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BBX Sweet Holdings
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Renin
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Other
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Reconciling Items and Eliminations
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Segment Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Trade sales
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$
|
—
|
|
|
28,051
|
|
|
16,442
|
|
|
1,111
|
|
|
(1)
|
|
|
45,603
|
|
Sales of real estate inventory
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|
|
370
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
370
|
|
Interest income
|
|
|
166
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
178
|
|
Net gains on sales of real estate assets
|
|
|
399
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
399
|
|
Other revenue
|
|
|
197
|
|
|
115
|
|
|
—
|
|
|
888
|
|
|
(58)
|
|
|
1,142
|
|
Total revenues
|
|
|
1,132
|
|
|
28,178
|
|
|
16,442
|
|
|
1,999
|
|
|
(59)
|
|
|
47,692
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of trade sales
|
|
|
—
|
|
|
17,229
|
|
|
12,983
|
|
|
493
|
|
|
(1)
|
|
|
30,704
|
|
Cost of real estate inventory sold
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Interest expense
|
|
|
—
|
|
|
45
|
|
|
131
|
|
|
8
|
|
|
(66)
|
|
|
118
|
|
Recoveries from loan losses, net
|
|
|
(1,821)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,821)
|
|
Impairment losses
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
Selling, general and administrative expenses
|
|
|
2,336
|
|
|
11,086
|
|
|
2,849
|
|
|
1,612
|
|
|
5,311
|
|
|
23,194
|
|
Total costs and expenses
|
|
|
552
|
|
|
28,360
|
|
|
15,963
|
|
|
2,113
|
|
|
5,244
|
|
|
52,232
|
|
Equity in net earnings of unconsolidated real estate joint ventures
|
|
|
28,534
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,534
|
|
Other income
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
Foreign exchange gain
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Income (loss) before income taxes
|
|
$
|
29,114
|
|
|
(115)
|
|
|
480
|
|
|
(114)
|
|
|
(5,303)
|
|
|
24,062
|
|
Total assets
|
|
$
|
147,712
|
|
|
166,311
|
|
|
32,103
|
|
|
8,491
|
|
|
1,864
|
|
|
356,481
|
|
Expenditures for property and equipment
|
|
$
|
1
|
|
|
3,801
|
|
|
79
|
|
|
174
|
|
|
—
|
|
|
4,055
|
|
Depreciation and amortization
|
|
$
|
—
|
|
|
1,519
|
|
|
303
|
|
|
193
|
|
|
—
|
|
|
2,015
|
|
Debt accretion and amortization
|
|
$
|
22
|
|
|
55
|
|
|
6
|
|
|
2
|
|
|
—
|
|
|
85
|
|
Cash and cash equivalents
|
|
$
|
21,781
|
|
|
3,629
|
|
|
—
|
|
|
525
|
|
|
—
|
|
|
25,935
|
|
Real estate equity method investments
|
|
$
|
53,739
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,739
|
|
Goodwill
|
|
$
|
—
|
|
|
35,521
|
|
|
—
|
|
|
1,727
|
|
|
—
|
|
|
37,248
|
|
Notes payable and other borrowings
|
|
$
|
32,009
|
|
|
1,867
|
|
|
8,394
|
|
|
400
|
|
|
—
|
|
|
42,670
|
The table below sets forth the Company’s segment information as of and for the nine months ended September 30, 2020 (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BBX Capital Real Estate
|
|
BBX Sweet Holdings
|
|
Renin
|
|
Other
|
|
Reconciling Items and Eliminations
|
|
Segment Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$
|
—
|
|
|
41,743
|
|
|
54,283
|
|
|
3,602
|
|
|
—
|
|
|
99,628
|
|
Sales of real estate inventory
|
|
|
14,248
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,248
|
|
Interest income
|
|
|
604
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
(47)
|
|
|
586
|
|
Net gains on sales of real estate assets
|
|
|
130
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
130
|
|
Other revenue
|
|
|
1,116
|
|
|
281
|
|
|
—
|
|
|
1,083
|
|
|
(82)
|
|
|
2,398
|
|
Total revenues
|
|
|
16,098
|
|
|
42,053
|
|
|
54,283
|
|
|
4,685
|
|
|
(129)
|
|
|
116,990
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of trade sales
|
|
|
—
|
|
|
35,493
|
|
|
44,054
|
|
|
607
|
|
|
—
|
|
|
80,154
|
|
Cost of real estate inventory sold
|
|
|
9,473
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,473
|
|
Interest expense
|
|
|
—
|
|
|
170
|
|
|
238
|
|
|
9
|
|
|
(417)
|
|
|
—
|
|
Recoveries from loan losses, net
|
|
|
(5,844)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,844)
|
|
Impairment losses
|
|
|
2,710
|
|
|
25,303
|
|
|
—
|
|
|
2,727
|
|
|
—
|
|
|
30,740
|
|
Selling, general and administrative expenses
|
|
|
5,176
|
|
|
25,123
|
|
|
6,788
|
|
|
3,572
|
|
|
13,365
|
|
|
54,024
|
|
Total costs and expenses
|
|
|
11,515
|
|
|
86,089
|
|
|
51,080
|
|
|
6,915
|
|
|
12,948
|
|
|
168,547
|
|
Equity in net earnings of unconsolidated real estate joint ventures
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
Loss on the deconsolidation of IT'SUGAR, LLC
|
|
|
—
|
|
|
(3,326)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,326)
|
|
Other income (expense)
|
|
|
—
|
|
|
195
|
|
|
(3)
|
|
|
—
|
|
|
—
|
|
|
192
|
|
Foreign exchange gain
|
|
|
—
|
|
|
—
|
|
|
214
|
|
|
—
|
|
|
—
|
|
|
214
|
|
Income (loss) before income taxes
|
|
$
|
4,633
|
|
|
(47,167)
|
|
|
3,414
|
|
|
(2,230)
|
|
|
(13,077)
|
|
|
(54,427)
|
|
Expenditures for property and equipment
|
|
$
|
—
|
|
|
3,120
|
|
|
852
|
|
|
60
|
|
|
—
|
|
|
4,032
|
|
Depreciation and amortization
|
|
$
|
—
|
|
|
4,108
|
|
|
880
|
|
|
77
|
|
|
—
|
|
|
5,065
|
|
Debt accretion and amortization
|
|
$
|
223
|
|
|
167
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
403
|
The table below sets forth the Company’s segment information as of and for the nine months ended September 30, 2019 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BBX Capital Real Estate
|
|
BBX Sweet Holdings
|
|
Renin
|
|
Other
|
|
Reconciling Items and Eliminations
|
|
Segment Total
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales
|
|
$
|
—
|
|
|
76,039
|
|
|
51,124
|
|
|
5,514
|
|
|
—
|
|
|
132,677
|
|
Sales of real estate inventory
|
|
|
5,030
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,030
|
|
Interest income
|
|
|
631
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
674
|
|
Net gains on sales of real estate assets
|
|
|
11,395
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,395
|
|
Other revenue
|
|
|
1,321
|
|
|
210
|
|
|
—
|
|
|
1,751
|
|
|
(230)
|
|
|
3,052
|
|
Total revenues
|
|
|
18,377
|
|
|
76,292
|
|
|
51,124
|
|
|
7,265
|
|
|
(230)
|
|
|
152,828
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of trade sales
|
|
|
—
|
|
|
48,862
|
|
|
40,989
|
|
|
1,994
|
|
|
—
|
|
|
91,845
|
|
Cost of real estate inventory sold
|
|
|
2,643
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,643
|
|
Interest expense
|
|
|
—
|
|
|
143
|
|
|
387
|
|
|
11
|
|
|
(132)
|
|
|
409
|
|
Recoveries from loan losses, net
|
|
|
(4,206)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,206)
|
|
Impairment losses
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
Selling, general and administrative expenses
|
|
|
6,709
|
|
|
31,860
|
|
|
8,326
|
|
|
5,136
|
|
|
16,473
|
|
|
68,504
|
|
Total costs and expenses
|
|
|
5,183
|
|
|
80,865
|
|
|
49,702
|
|
|
7,141
|
|
|
16,341
|
|
|
159,232
|
|
Equity in net earnings of unconsolidated real estate joint ventures
|
|
|
37,276
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,276
|
|
Other income
|
|
|
171
|
|
|
292
|
|
|
152
|
|
|
6
|
|
|
—
|
|
|
621
|
|
Foreign exchange loss
|
|
|
—
|
|
|
—
|
|
|
(23)
|
|
|
—
|
|
|
—
|
|
|
(23)
|
|
Income (loss) before income taxes
|
|
$
|
50,641
|
|
|
(4,281)
|
|
|
1,551
|
|
|
130
|
|
|
(16,571)
|
|
|
31,470
|
|
Expenditures for property and equipment
|
|
$
|
4
|
|
|
6,387
|
|
|
284
|
|
|
548
|
|
|
—
|
|
|
7,223
|
|
Depreciation and amortization
|
|
$
|
93
|
|
|
4,252
|
|
|
897
|
|
|
260
|
|
|
—
|
|
|
5,502
|
|
Debt accretion and amortization
|
|
$
|
133
|
|
|
167
|
|
|
23
|
|
|
3
|
|
|
—
|
|
|
326
|
|