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Related Party Transactions
9 Months Ended
Sep. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

10.  Related Party Transactions



BBX Capital may be deemed to be controlled by Alan B. Levan, Chairman of BBX Capital, and John E. Abdo, Vice Chairman of BBX Capital. Together, Messrs. Levan and Abdo may be deemed to beneficially own shares of BBX Capital’s Class A Common Stock and Class B Common Stock representing approximately  77% of BBX Capital’s total voting power. Mr. Levan and Mr. Abdo serve as our Chairman and Vice Chairman, respectively.



In April 2015, pursuant to a Loan Agreement and Promissory Note, one of our wholly owned subsidiaries provided an $80.0 million loan to BBX Capital. Amounts outstanding on the loan bore interest at a rate of 10% per annum until July 2017 when the interest rate was reduced to 6% per annum. Payments of interest are required on a quarterly basis, with all outstanding amounts being due and payable at the end of the five-year term. BBX Capital is permitted to prepay the loan in whole or in part at any time, and prepayments will be required, to the extent necessary, in order for us or our subsidiaries to remain in compliance with covenants under outstanding indebtedness. During both the three months ended September 30, 2018 and 2017, respectively, we recognized $1.2 million of interest income on the loan to BBX Capital.   During the nine months ended September 30, 2018 and 2017, we recognized $3.6 million and $5.2 million, respectively, of interest income on the loan to BBX Capital.

 

We paid or reimbursed BBX Capital or its affiliated entities $0.6 million and $1.2 million during the three and nine months ended September 30, 2018, respectively, and $0.3 and $1.2 million during the three and nine months ended September 30, 2017, respectively, for management advisory, risk management, administrative and other services. We accrued $0.2 million and $0.1 million for the services described above as of September 30, 2018 and December 31, 2017, respectively.  BBX Capital or its affiliates paid or reimbursed us $0.1 million and $0.4 million during the three and nine months ended September 30, 2018, respectively, and $0.1 million during both the three and nine months ended September 30, 2017, for other shared services.  As of September 30, 2018 and December 31, 2017, $0.1 million and $0.2 million, respectively, was due to us from BBX Capital for these services.



During the nine months ended September 30, 2018, we paid $0.6 million for the acquisition of VOI inventory from a company whose President is the son of David L. Pontius, our Executive Vice President and Chief Operating Officer. 



See also the description of the Agreement to Allocate Consolidated Income Tax Liability and Benefits under Note 9 above.