Related Party Transactions
|12 Months Ended|
Dec. 31, 2019
|Related Party Transactions [Abstract]|
|Related Party Transactions||
16. 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 78% of BBX Capital’s total voting power. Mr. Levan and Mr. Abdo serve as our Chairman and Vice Chairman, respectively. Further, Mr. Levan was appointed our President and Chief Executive Officer effective January 1, 2020. During 2019, we accrued $2.0 million of compensation for Mr. Levan for the performance of certain services for us in a non-executive capacity, all of which remained payable as of December 31, 2019.
In April 2015, pursuant to a Loan Agreement and Promissory Note, our wholly owned subsidiary 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 currently 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 the years ended December 31, 2019, 2018 and 2017, we recognized $4.8 million, $4.8 million and $6.4 million, respectively, of interest income on the loan to BBX Capital.
We paid or reimbursed BBX Capital or its affiliated entities $1.7 million, $1.6 million and $1.5 million during 2019, 2018, and 2017, respectively, for management advisory, risk management, administrative and other services. We had accrued $0.2 million and $0.1 million for the services described above as of December 31, 2019 and 2018, respectively. BBX Capital or its affiliates paid or reimbursed us $0.2 million, $0.4 million and $0.1 million for other shared services during 2019, 2018, and 2017, respectively. As of both December 31, 2019 and 2018, $0.1 million was due to us from BBX Capital for these services.
See also the description of the Agreement to Allocate Consolidated Income Tax Liability and Benefits under Note 13: Income Taxes above.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef