Note 13 - Business Segment Information

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 13. 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.” Using the criteria of FASB ASC 280

Segment Reporting

, 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 brokerage and management services to industrial, commercial, municipal and governmental customers, captive landfill management for an industrial customer and salt water injection well operations.

The golf and related operations segment includes the operations of golf courses, country clubs and related facilities, a hotel and travel agency. Revenue for the golf and related operations segment consists primarily of membership dues, greens fees, cart rentals, room rentals, merchandise sales, tennis and fitness activities, spa services and food and beverage sales.

Avalon does not have significant operations located outside the United States and, accordingly, geographical segment information is not presented. In 2015, one customer accounted for 11% of the waste management services segment’s net operating revenues to external customers and 8% of the consolidated net operating revenues. In 2014, no customer individually accounted for 10% or more of Avalon’s consolidated net operating revenues.

The accounting policies of the segments are consistent with those described for the consolidated financial statements in the summary of significant accounting policies (See Note 2). Avalon measures segment profit for internal reporting purposes as income (loss) before taxes.

Business segment information including the reconciliation of segment income to consolidated loss before taxes is as follows (in thousands):

	2015			2014
Net operating revenues from:
Waste management services:
External customer revenues	$	38,278		$	38,603
Intersegment revenues		-			-
Total waste management services		38,278			38,603
Golf and related operations:
External customer revenues		14,812			12,869
Intersegment revenues		90			92
Total golf and related operations		14,902			12,961
Segment operating revenues		53,180			51,564
Intersegment eliminations		(90	)		(92	)
Total net operating revenues	$	53,090		$	51,472
Income (loss) before income taxes:
Waste management services	$	1,758		$	2,899
Golf and related operations		(26	)		(1,175	)
Segment income before taxes		1,732			1,724
Corporate interest income		-			1
Corporate interest expense		(130	)		(38	)
Corporate other income, net		24			32
General corporate expenses		(2,789	)		(2,904	)
Loss before income taxes	$	(1,163	)	$	(1,185	)
Depreciation and amortization expense:
Waste management services	$	646		$	506
Golf and related operations		1,732			1,475
Corporate		182			174
Total	$	2,560		$	2,155
Capital expenditures:
Waste management services	$	10		$	3,112
Golf and related operations		8,769			4,459
Corporate		14			113
Total	$	8,793		$	7,684
Total assets:
Waste management services	$	22,575		$	19,381
Golf and related operations		43,390			36,449
Corporate		47,800			44,613
Subtotal		113,765			100,443
Elimination of intersegment receivables		(51,463	)		(42,599	)
Total	$	62,302		$	57,844

In comparing the total assets at December 31, 2015 with those at December 31, 2014, the increase in total assets of the waste management services segment of $3.2 million is primarily due to an increase in intersegment transactions, which are eliminated in consolidation and to a lesser extent an increase in accounts receivable partially offset by a lower net book value of property and equipment as a result of current year depreciation on the salt water injection wells. The increase in total assets of the golf and related operations segment of $6.9 million is primarily due to capital expenditures related to the renovation and expansion of The Avalon Inn partially offset by current year depreciation. The increase in corporate total assets is primarily due to an increase in intersegment transactions partially offset by a decrease in cash and cash equivalents as a result of monies expended for the renovation and expansion on The Avalon Inn

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