Note 15 - Business Segment Information

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

15.

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 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.

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. In

2020

and

2019,

no

customer individually accounted for

10%

or more of Avalon's business segment or 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 (loss) to consolidated income (loss) before taxes is as follows (in thousands):

	Year Ended December 31,
	2020			2019
Net operating revenues from:
Waste management services:
External customer revenues	$	40,371		$	48,731
Intersegment revenues		-			-
Total waste management services		40,371			48,731
Golf and related operations:
External customer revenues		18,349			19,626
Intersegment revenues		41			61
Total golf and related operations		18,390			19,687
Segment operating revenues		58,761			68,418
Intersegment eliminations		(41	)		(61	)
Total net operating revenues	$	58,720		$	68,357
Income (loss) before income taxes:
Waste management services	$	4,588		$	4,423
Golf and related operations		(190	)		(803	)
Segment income before taxes		4,398			3,620
Corporate interest expense		(1,170	)		(770	)
Corporate other income (expense), net		16			64
General corporate expenses		(3,192	)		(3,289	)
Income (loss) before income taxes	$	52		$	(375	)
Depreciation and amortization expense:
Waste management services	$	89		$	59
Golf and related operations		2,671			2,330
Corporate		149			133
Total depreciation and amortization expense	$	2,909		$	2,522
Interest expense:
Waste management services	$	6		$	3
Golf and related operations		34			64
Corporate		1,170			770
Total interest expense	$	1,210		$	837
Gain on debt extinguishment:
Waste management services	$	553		$	-
Golf and related operations		248			-
Corporate		-			-
Total interest expense	$	801		$	-

	Year Ended December 31,
	2020		2019
Capital expenditures:
Waste management services	$	99	$	182
Golf and related operations		4,870		7,536
Corporate		118		204
Total capital expenditures	$	5,087	$	7,922

	December 31,
	2020			2019
Total assets:
Waste management services	$	31,875		$	31,574
Golf and related operations		57,863			55,369
Corporate		59,425			58,638
Subtotal		149,163			145,581
Elimination of intersegment receivables		(71,213	)		(66,417	)
Total assets	$	77,950		$	79,164

In comparing the total assets at

December 31, 2020

with those at

December 31, 2019,

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

$0.3

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

$2.5

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

$0.8

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.