Note 13 - Business Segment Information

6 Months Ended

Jun. 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

six

months ended

June 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						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
Net operating revenues from:
Waste management services:
External customer revenues	$	9,088		$	12,902		$	20,221		$	24,336
Intersegment revenues		-			-			-			-
Total waste management services		9,088			12,902			20,221			24,336
Golf and related operations:
External customer revenues		3,979			5,523			7,249			8,697
Intersegment revenues		2			14			30			35
Total golf and related operations		3,981			5,537			7,279			8,732
Segment operating revenues		13,069			18,439			27,500			33,068
Intersegment eliminations		(2	)		(14	)		(30	)		(35	)
Total net operating revenues	$	13,067		$	18,425		$	27,470		$	33,033

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
Income (loss) before income taxes:
Waste management services	$	807		$	1,221		$	1,855		$	2,221
Golf and related operations		(186	)		181			(917	)		(463	)
Segment income before income taxes		621			1,402			938			1,758
Corporate interest expense		(293	)		(196	)		(590	)		(348	)
Corporate other income, net		11			46			13			48
General corporate expenses		(762	)		(750	)		(1,570	)		(1,569	)
Income (loss) before income taxes	$	(423	)	$	502		$	(1,209	)	$	(111	)

	June 30,			December 31,
	2020			2019
Identifiable assets:
Waste management services	$	28,465		$	31,574
Golf and related operations		58,577			55,369
Corporate		61,401			58,638
Subtotal		148,443			145,581
Elimination of intersegment receivables		(69,477	)		(66,417	)
Total	$	78,966		$	79,164

In comparing the total assets at

June 30, 2020

with those at

December 31, 2019,

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

$3.1

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

$3.2

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

$2.8

million is primarily due to an increase in 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.