Note 7. Business Segment Information

3 Months Ended

Mar. 31, 2012

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 and manages a captive landfill for an industrial customer.  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, fitness and spa activities and food and beverage sales.  Revenue related to membership dues are recognized proportionately over twelve months.  The unrecognized or deferred revenues at March 31, 2012 and December 31, 2011 were $2.4 million and $2.1 million, respectively.  Avalon does not have significant operations located outside the United States and, accordingly, geographical segment information is not presented.

For the three months ended March 31, 2012, one customer accounted for approximately 9% of Avalon’s consolidated net operating revenues and 11% of the waste management services segment’s net operating revenues. For the three months ended March 31, 2011, one customer accounted for approximately 14% of Avalon’s consolidated net operating revenues and 17% of the waste management services segment’s 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.  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 March 31,
Net operating revenues from:	2012			2011
Waste management services:
External customers revenues	$	8,938		$	8,207
Intersegment revenues		—			—
Total waste management services		8,938			8,207
Golf and related operations:
External customers revenues		2,000			1,687
Intersegment revenues		10			8
Total golf and related operations		2,010			1,695
Segment operating revenues		10,948			9,902
Intersegment eliminations		(10	)		(8	)
Total net operating revenues	$	10,938		$	9,894
Income (loss) before taxes:
Waste management services	$	723		$	684
Golf and related operations		(353	)		(394	)
Segment income before taxes		370			290
Corporate interest income		1			2
Corporate other income, net		9			9
General corporate expenses		(756	)		(628	)
Loss before taxes	$	(376	)	$	(327	)
Interest income:
Waste management services	$	—		$	—
Golf and related operations		—			—
Corporate		1			2
Total	$	1		$	2

	March 31, 2012			December 31, 2011
Identifiable assets:
Waste management services	$	12,848		$	16,869
Golf and related operations		30,254			30,140
Corporate		41,560			41,840
Subtotal		84,662			88,849
Elimination of intersegment receivables		(35,572	)		(35,482	)
Total	$	49,090		$	53,367

In comparing the identifiable assets at March 31, 2012 with those at December 31, 2011, the decrease in identifiable assets of the waste management services segment of $4.0 million is primarily due to a decrease in accounts receivable as a result of lower net operating revenues of the waste brokerage and management services business in the first quarter of 2012 compared with the fourth quarter of 2011. Net operating revenues of the waste brokerage and management services business were $8.3 million in the first quarter of 2012 compared with $13.9 million in the fourth quarter of 2011.