| Revenue From Contracts With Cutomers |
3. Revenue From Contracts with Customers
Financial Statement Impact of Adopting ASC 606
As discussed in Note 2: Basis of Presentation and Significant Accounting Policies, the FASB issued ASU 2014-09 in May 2014, which, as amended, specifies how and when to recognize revenue from contracts with customers by providing a principle-based framework and requires additional disclosures about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We adopted ASC 606, effective January 1, 2018, on a retrospective basis and restated our previously reported historical results as shown in the tables below. The cumulative effect of applying the new guidance to our contracts with customers was recorded as an adjustment to retained earnings as of January 1, 2016.
We have elected to use the following practical expedients in connection with our adoption of ASU 2014-09:
|
·
|
|
We utilize the transaction price upon completion of the contract for certain contracts with customers.
|
|
·
|
|
We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less or unsatisfied performance obligations or unsatisfied promises to transfer a distinct good or service that forms a part of a single performance obligation recognized over time. See Note 2: Basis of Presentation and Significant Accounting Policies for further description of variable consideration identified in our contracts with customers.
|
|
·
|
|
We expense all marketing and sales costs as they are incurred.
|
|
·
|
|
We exclude all taxes assessed by a governmental authority that are imposed on a specified transaction concurrent with the closing thereof and are collected by us from a customer.
|
We do not believe that the use of these practical expedients materially impacted our consolidated financial statements and disclosures herein.
The following represents the impact of the adoption of ASU 2014-09 on our consolidated balance sheets as of December 31, 2017 and December 31, 2016 and our consolidated statements of income and comprehensive income for the years ended December 31, 2017 and 2016 (in thousands, except per share data):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Year ended December 31, 2017
|
|
|
|
Initially
As Reported
|
|
ASC 606 Adjustment
|
|
As Adjusted
|
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
Notes receivable, net
|
|
$
|
431,801
|
|
$
|
(4,943)
|
|
$
|
426,858
|
|
Deferred income
|
|
|
36,311
|
|
|
(19,418)
|
|
|
16,893
|
|
Deferred income taxes
|
|
|
83,628
|
|
|
5,338
|
|
|
88,966
|
|
Total shareholders' equity
|
|
$
|
424,517
|
|
$
|
9,137
|
|
$
|
433,654
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement:
|
|
|
|
|
|
|
|
|
|
|
Sales of VOIs
|
|
$
|
239,662
|
|
$
|
2,355
|
|
$
|
242,017
|
|
Reimbursement revenue
|
|
|
—
|
|
|
52,639
|
|
|
52,639
|
|
Cost of reimbursement
|
|
|
—
|
|
|
52,639
|
|
|
52,639
|
|
Cost of VOIs sold
|
|
|
17,439
|
|
|
240
|
|
|
17,679
|
|
Selling, general and administrative expenses
|
|
|
420,746
|
|
|
453
|
|
|
421,199
|
|
Income before non-controlling interest and provision
for income taxes
|
|
|
135,336
|
|
|
1,662
|
|
|
136,998
|
|
Provision for income taxes
|
|
|
(2,974)
|
|
|
629
|
|
|
(2,345)
|
|
Net income
|
|
|
138,310
|
|
|
1,033
|
|
|
139,343
|
|
Less: Net income attributable to non-controlling interest
|
|
|
12,784
|
|
|
(24)
|
|
|
12,760
|
|
Net income attributable to Bluegreen Vacations Corporation
shareholders
|
|
$
|
125,526
|
|
$
|
1,057
|
|
$
|
126,583
|
|
Basic and diluted earnings per share
|
|
$
|
1.76
|
|
$
|
0.01
|
|
$
|
1.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Year ended December 31, 2016
|
|
|
|
Initially
As Reported
|
|
ASC 606 Adjustment
|
|
As Adjusted
|
|
Balance Sheet:
|
|
|
|
|
|
|
|
|
|
|
Notes receivable, net
|
|
$
|
430,480
|
|
$
|
(4,680)
|
|
$
|
425,800
|
|
Deferred income
|
|
|
37,015
|
|
|
(17,493)
|
|
|
19,522
|
|
Deferred income taxes
|
|
|
126,278
|
|
|
4,711
|
|
|
130,989
|
|
Total shareholders' equity
|
|
$
|
290,208
|
|
$
|
8,104
|
|
$
|
298,312
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement:
|
|
|
|
|
|
|
|
|
|
|
Sales of VOIs
|
|
$
|
266,142
|
|
$
|
7,731
|
|
$
|
273,873
|
|
Reimbursement revenue
|
|
|
—
|
|
|
49,557
|
|
|
49,557
|
|
Cost of reimbursement
|
|
|
—
|
|
|
49,557
|
|
|
49,557
|
|
Cost of VOIs sold
|
|
|
27,346
|
|
|
1,483
|
|
|
28,829
|
|
Selling, general and administrative expenses
|
|
|
418,357
|
|
|
1,573
|
|
|
419,930
|
|
Income before non-controlling interest and provision
for income taxes
|
|
|
124,948
|
|
|
4,675
|
|
|
129,623
|
|
Provision for income taxes
|
|
|
40,172
|
|
|
1,448
|
|
|
41,620
|
|
Net income
|
|
|
84,776
|
|
|
3,227
|
|
|
88,003
|
|
Less: Net income attributable to non-controlling interest
|
|
|
9,825
|
|
|
301
|
|
|
10,126
|
|
Net income attributable to Bluegreen Vacations Corporation
shareholders
|
|
|
74,951
|
|
|
2,926
|
|
|
77,877
|
|
Basic and diluted earnings per share
|
|
$
|
1.06
|
|
$
|
0.04
|
|
$
|
1.10
|
Adoption of the standard related to revenue recognition did not impact the cash from or used in operating, financing, or investing activities on our consolidated cash flow statements.
Disaggregated Revenue
The following table shows our disaggregated revenue by segment from contracts with customers. We operate our business in the following two segments: (i) Sales of VOIs and financing; and (ii) Resort operations and club management. Please refer to Note 16: Segment Reporting below for more details related to our segments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended
|
|
|
|
|
December 31,
|
|
|
|
|
2018
|
|
2017
|
|
2016
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Sales of VOIs (1)
|
|
$
|
254,225
|
|
$
|
242,017
|
|
$
|
273,873
|
|
|
Fee-based sales commission revenue (1)
|
|
|
216,422
|
|
|
229,389
|
|
|
201,829
|
|
|
Resort and club management revenue (2)
|
|
|
99,535
|
|
|
91,080
|
|
|
84,318
|
|
|
Cost reimbursements (2)
|
|
|
62,534
|
|
|
52,639
|
|
|
49,557
|
|
|
Title fees (1)
|
|
|
12,205
|
|
|
14,742
|
|
|
13,838
|
|
|
Other revenue (2)
|
|
|
6,284
|
|
|
5,997
|
|
|
5,292
|
|
|
Revenue from customers
|
|
|
651,205
|
|
|
635,864
|
|
|
628,707
|
|
|
Interest income (1)
|
|
|
85,914
|
|
|
86,876
|
|
|
89,510
|
|
|
Other income, net
|
|
|
1,201
|
|
|
312
|
|
|
1,724
|
|
|
Total revenue
|
|
$
|
738,320
|
|
$
|
723,052
|
|
$
|
719,941
|
|
(1) Included in our sales of VOIs and financing segment described in Note 16.
(2) Included in our resort operations and club management segment described in Note 16.
|