Annual report pursuant to Section 13 and 15(d)

Revenue From Contracts With Customers

v3.10.0.1
Revenue From Contracts With Customers
12 Months Ended
Dec. 31, 2018
Revenue from Contracts with Customers [Abstract]  
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.