Note 7. Business Segment Information

6 Months Ended

Jun. 30, 2011

Segment Reporting Disclosure [Text Block]

Note 7.  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.”  On this basis, 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 waste disposal brokerage and management services to industrial, commercial, municipal and governmental customers, manages a captive landfill for an industrial customer and sells construction mats.  The golf and related operations segment includes the operations of golf courses, clubhouses that provide recreational, dining and banquet facilities and a travel agency.  Revenue for the golf and related operations segment consists primarily of membership dues, green fees, cart rentals, merchandise, and food and beverage sales.  Revenue related to membership dues are recognized proportionately over twelve months.  The unrecognized or deferred revenues relating to membership dues at June 30, 2011 and December 31, 2010 were $2.5 million and $2.0 million, respectively. Avalon does not have significant operations located outside the United States and, accordingly, geographical segment information is not presented.

For the six months ended June 30, 2011 one customer accounted for 14% of the waste management services segment’s net operating revenues to external customers and 11% of Avalon’s consolidated net operating revenues. For the six months ended June 30, 2010 one customer accounted for 11% of the waste management services segment’s net operating revenues to external customers and 9% of Avalon’s consolidated net operating revenues.  In addition, Avalon’s captive landfill management business is dependent upon a single customer as its sole source of revenue.

The accounting policies of the segments are consistent with those described for the consolidated financial statements in the summary of significant accounting policies.  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 June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Net operating revenues from:
Waste management services:
External customers revenues	$	8,402		$	9,294		$	16,609		$	15,971
Intersegment revenues		—			—			—			—
Total waste management services		8,402			9,294			16,609			15,971
Golf and related operations:
External customers revenues		2,973			2,757			4,660			4,410
Intersegment revenues		25			19			33			30
Total golf and related operations		2,998			2,776			4,693			4,440
Segment operating revenues		11,400			12,070			21,302			20,411
Intersegment eliminations		(25	)		(19	)		(33	)		(30	)
Total net operating revenues	$	11,375		$	12,051		$	21,269		$	20,381
Income (loss) before taxes:
Waste management services	$	690		$	798		$	1,374		$	1,261
Golf and related operations		(114	)		(98	)		(508	)		(507	)
Segment income before taxes		576			700			866			754
Corporate interest income		1			8			3			16
Corporate other income, net		115			2			124			4
General corporate expenses		(604	)		(709	)		(1,232	)		(1,356	)
Income (loss) before taxes	$	88		$	1		$	(239	)	$	(582	)
Interest income:
Waste management services	$	—		$	—		$	—		$	—
Golf and related operations		—			—			—			—
Corporate		1			8			3			16
Total	$	1		$	8		$	3		$	16

	June 30, 2011			December 31, 2010
Identifiable assets:
Waste management services	$	10,986		$	11,648
Golf and related operations		31,344			30,233
Corporate		40,451			40,006
Subtotal		82,781			81,887
Elimination of intersegment receivables		(35,015	)		(34,550	)
Total	$	47,766		$	47,337

In comparing the identifiable assets at June 30, 2011 with those at December 31, 2010, the increase in identifiable assets of the golf and related operations of $1.1 million is primarily due to capital expenditures. The decrease in the identifiable assets of $.7 million of the waste management services segment is primarily due to a decrease in accounts receivable as a result of lower net operating revenues in the second quarter of 2011 compared with the fourth quarter of 2010. The increase in identifiable assets of corporate is primarily due to an increase in cash and cash equivalents, partially offset by a decrease in property and equipment as a result of the sale of an asset.