Note 13- Business Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 13. 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.” Using the criteria of 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. The golf and related operations segment includes the operations of golf courses, country clubs and related facilities, a hotel and travel agency. Revenue for the golf and related operations segment consists primarily of membership dues, greens fees, cart rentals, room rentals, merchandise sales, tennis, 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 2014, no customer individually accounted for 10% or more of Avalon’s consolidated net operating revenues. In 2013, one customer accounted for 17% of the waste management services segment’s net operating revenues to external customers and 13% of the 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 to consolidated income (loss) before taxes is as follows (in thousands):

	2014			2013
Net operating revenues from:
Waste management services:
External customer revenues	$	38,603		$	47,243
Intersegment revenues		-			-
Total waste management services		38,603			47,243
Golf and related operations:
External customer revenues		12,869			12,227
Intersegment revenues		92			89
Total golf and related operations		12,961			12,316
Segment operating revenues		51,564			59,559
Intersegment eliminations		(92	)		(89	)
Total net operating revenues	$	51,472		$	59,470
Income (loss) before income taxes:
Waste management services	$	2,899		$	3,787
Golf and related operations		(1,175	)		(336	)
Segment income before taxes		1,724			3,451
Corporate interest income		1			1
Corporate interest expense		(38	)		-
Corporate other income, net		32			35
General corporate expenses		(2,904	)		(2,952	)
Income (loss) before income taxes	$	(1,185	)	$	535
Depreciation and amortization expense:
Waste management services	$	506		$	99
Golf and related operations		1,475			1,400
Corporate		174			137
Total	$	2,155		$	1,636
Capital expenditures:
Waste management services	$	3,112		$	2,939
Golf and related operations		4,459			797
Corporate		113			327
Total	$	7,684		$	4,063

	December 31,
	2014			2013
Identifiable assets:
Waste management services	$	19,381		$	16,252
Golf and related operations		36,449			29,821
Corporate		44,613			43,997
Subtotal		100,443			90,070
Elimination of intersegment receivables		(42,599	)		(34,491	)
Total	$	57,844		$	55,579

The increase of $3.1 million in identifiable assets of the waste management services segment is primarily due to an increase in properties and equipment as result of the construction and drilling of two salt water injection well facilities. The increase of $6.6 million in identifiable assets of the golf and related operations is primarily due to the acquisition of The Avalon Resort and Spa and associated renovations on the facility.