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Note 5 - Capital Leased Assets
6 Months Ended
Jun. 30, 2017
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 less than
$0.1
million at
June 30, 2017
and approximately
$0.1
million at
December 31, 2016.
 
During
2016
and
2017,
the golf and related operations entered into leases for a vehicle and golf course maintenance 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
$0.9
million at
June 30, 2017
and
$0.3
million at
December 31, 2016.
 
Leased property under capital leases at
June 30, 2017
and
December 31, 2016
consists of the following (in thousands):
 
 
 
June 30,
 
 
December 31,
 
 
 
2017
 
 
2016
 
Leased property under capital leases
  $
11,447
    $
10,783
 
Less accumulated amortization
   
(5,012
)    
(4,748
)
Leased property under capital leases, net
  $
6,435
    $
6,035