Note 7. Business Segment Information

6 Months Ended

Jun. 30, 2012

Segment Reporting Disclosure [Text Block]

Note 7.  Business Segment Information

Avalon’s reportable segments include waste management services and golf and related operations. In determining the segment information, Avalon considered its operating and management structure and the types of information subject to regular review by its “chief operating decision maker.”  On this basis, Avalon’s reportable segments include waste management services and golf and related operations.  Avalon accounts for intersegment net operating revenues as if the transactions were to third parties.  The segment disclosures are presented on this basis for all years presented.

Avalon’s primary business segment, the waste management services segment, provides hazardous and nonhazardous waste disposal brokerage and management services to industrial, commercial, municipal and governmental customers, manages a captive landfill for an industrial customer and sells construction mats.  The golf and related operations segment includes the operations of golf courses, clubhouses that provide recreational, dining and banquet facilities and a travel agency.  Revenue for the golf and related operations segment consists primarily of membership dues, green fees, cart rentals, merchandise, and food and beverage sales.  Revenue related to membership dues are recognized proportionately over twelve months.  The unrecognized or deferred revenues relating to membership dues at June 30, 2012 and December 31, 2011 were $2.9 million and $2.1 million, respectively. Avalon does not have significant operations located outside the United States and, accordingly, geographical segment information is not presented.

For the six months ended June 30, 2012 no customer accounted for 10% or more of Avalon’s consolidated net operating revenues. For the six months ended June 30, 2011 one customer accounted for 14% of the waste management services segment’s net operating revenues to external customers and 11% of Avalon’s consolidated net operating revenues.  In addition, Avalon’s captive landfill management business is dependent upon a single customer as its sole source of revenue.

The accounting policies of the segments are consistent with those described for the consolidated financial statements in the summary of significant accounting policies.  Avalon measures segment profit for internal reporting purposes as income (loss) before taxes.  Business segment information including the reconciliation of segment income before taxes to income (loss) before taxes is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Net operating revenues from:
Waste management services:
External customers revenues	$	9,114		$	8,402		$	18,052		$	16,609
Intersegment revenues		1			—			1			—
Total waste management services		9,115			8,402			18,053			16,609
Golf and related operations:
External customers revenues		3,495			2,973			5,495			4,660
Intersegment revenues		28			25			38			33
Total golf and related operations		3,523			2,998			5,533			4,693
Segment operating revenues		12,638			11,400			23,586			21,302
Intersegment eliminations		(29	)		(25	)		(39	)		(33	)
Total net operating revenues	$	12,609		$	11,375		$	23,547		$	21,269
Income (loss) before taxes:
Waste management services	$	800		$	690		$	1,523		$	1,374
Golf and related operations		91			(114	)		(262	)		(508	)
Segment income before taxes		891			576			1,261			866
Corporate interest income		1			1			2			3
Corporate other income, net		8			115			17			124
General corporate expenses		(607	)		(604	)		(1,363	)		(1,232	)
Income (loss) before taxes	$	293		$	88		$	(83	)	$	(239	)
Interest income:
Waste management services	$	—		$	—		$	—		$	—
Golf and related operations		—			—			—			—
Corporate		1			1			2			3
Total	$	1		$	1		$	2		$	3

	June 30, 2012			December 31, 2011
Identifiable assets:
Waste management services	$	13,709		$	16,869
Golf and related operations		31,508			30,140
Corporate		40,941			41,840
Subtotal		86,158			88,849
Elimination of intersegment receivables		(35,834	)		(35,482	)
Total	$	50,324		$	53,367

In comparing the identifiable assets at June 30, 2012 with those at December 31, 2011, the decrease in identifiable assets of the waste management services segment of $3.2 million is primarily due to a decrease in accounts receivable as a result of lower net operating revenues of the waste brokerage and management services business in the second quarter of 2012 compared with the fourth quarter of 2011. Net operating revenues of the waste brokerage and management services business were $8.5 million in the second quarter of 2012 compared with $13.9 million in the fourth quarter of 2011. The increase in identifiable assets of the golf and related operations segment of $1.4 million is primarily due to capital expenditures made during the first six months of 2012 and an increase in accounts receivable at June 30, 2012 compared with December 31, 2011.