Note 5 - Capital Leased Assets

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Debt and Capital Leases Disclosures [Text Block]

Note

5.

Capital Leased Assets

In

November

2003,

Avalon entered into a long-term agreement with Squaw Creek Country Club to lease and operate its golf course and related facilities. The lease has an initial term of

ten

(10)

years with

four

(4)

consecutive

ten

(10)

year renewal term options unilaterally exercisable by Avalon. Under the lease, Avalon is obligated to pay

$15,000

in annual rent and make leasehold improvements of

$150,000

per year. Amounts expended by Avalon for leasehold improvements during a given year in excess of

$150,000

will be carried forward and applied to future leasehold improvement obligations. Based upon the amount of leasehold improvements already made, Avalon expects to exercise all its remaining renewal options.

In addition to the Squaw Creek Country Club lease, the captive landfill operations lease a piece of equipment that was determined to be a capital lease. The amount capitalized in the Condensed Consolidated Balance Sheets under the caption “Leased property under capital leases, net” relating to this asset was approximately

$

0.1

million at

December

31,

2016

and

2015,

respectively.

During

2016,

the golf and related operations entered into leases for a vehicle and equipment that were determined to be capital leases. The amounts capitalized in the Condensed Consolidated Balance Sheets under the caption “Leased property under capital leases, net” relating to these assets were approximately

$0.3

million at

December

31,

2016.

Leased property under capital leases at

December

31,

2016

and

2015

consists of the following (in thousands):

	2016			2015
Leased property under capital leases	$	10,783		$	10,352
Less accumulated amortization		(4,748	)		(4,310	)
Leased property under capital leases, net	$	6,035		$	6,042

Subsequent to

December

31,

2016,

the golf and related operations entered into leases for equipment that were determined to be capital leases. The total amount related to these assets was approximately

$0.6

million.