Note 13 - Business Segment Information

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

13

.

Business Segment Information

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 periods 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.

Avalon's golf and related operations segment consists of

four

golf courses and associated clubhouses which provide dining and banquet facilities, a hotel which provides lodging and resort related amenities including dining, banquet and conference facilities, a multipurpose recreation center and a 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, salon and 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.

For both the

nine

months ended

September 30, 2020

and

2019,

no

one

customer accounted for

10%

of Avalon's consolidated or reportable segment 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 included in Avalon's

2019

Annual Report to Shareholders. 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						Nine Months Ended
	September 30,						September 30,
	2020			2019			2020			2019
Net operating revenues from:
Waste management services:
External customer revenues	$	9,326		$	11,572		$	29,547		$	35,908
Intersegment revenues		-			-			-			-
Total waste management services		9,326			11,572			29,547			35,908
Golf and related operations:
External customer revenues		7,299			6,446			14,548			15,143
Intersegment revenues		7			10			37			45
Total golf and related operations		7,306			6,456			14,585			15,188
Segment operating revenues		16,632			18,028			44,132			51,096
Intersegment eliminations		(7	)		(10	)		(37	)		(45	)
Total net operating revenues	$	16,625		$	18,018		$	44,095		$	51,051
Income (loss) before income taxes:
Waste management services	$	855		$	1,074		$	2,710		$	3,295
Golf and related operations		1,018			100			101			(363	)
Segment income before income taxes		1,873			1,174			2,811			2,932
Corporate interest expense		(293	)		(203	)		(883	)		(551	)
Corporate other income, net		9			3			22			51
General corporate expenses		(789	)		(810	)		(2,359	)		(2,379	)
Income (loss) before income taxes	$	800		$	164		$	(409	)	$	53

	September 30,			December 31,
	2020			2019
Identifiable assets:
Waste management services	$	29,787		$	31,574
Golf and related operations		57,669			55,369
Corporate		59,693			58,638
Subtotal		147,149			145,581
Elimination of intersegment receivables		(69,122	)		(66,417	)
Total	$	78,027		$	79,164

In comparing the total assets at

September 30, 2020

with those at

December 31, 2019,

the decrease in the total assets of the waste management services segment of

$1.8

million is primarily a result of a decrease in accounts receivable partially offset by an increase in intersegment transactions, which are eliminated in consolidation. The increase in total assets of the golf and related operations segment of

$2.3

million was primarily due to an increase in accounts receivable and capital expenditures related to the expansion of The Grand Resort partially offset by current year depreciation on property and equipment. The increase in corporate total assets of approximately

$1.1

million is primarily due to an increase in operating cash and cash equivalents and intersegment transactions, which are eliminated in consolidation, partially offset by a decrease in restricted cash utilized for the expansion of The Grand Resort.