Note 7 - Property and Equipment

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note

7.

Property and Equipment

Property and equipment is stated at cost and depreciated using the straight-line method over the estimated useful life of the asset which varies from

10

to

30

years for land improvements;

5

to

50

years in the case of buildings and improvements; and from

3

to

10

years for machinery and equipment, vehicles and office furniture and equipment.

Major additions and improvements are charged to the property and equipment accounts while replacements, maintenance and repairs, which do

not

improve or extend the life of the respective asset, are expensed as incurred. The cost of assets retired or otherwise disposed of and the related accumulated depreciation is eliminated from the accounts in the year of disposal. Gains or losses resulting from the disposal of property and equipment are recorded in “Other income, net” in our Condensed Consolidated Statements of Operations.

Property and equipment at

March 31, 2021

and

December 31, 2020

consists of the following (in thousands):

	March 31,			December 31,
	2021			2020
Land and land improvements	$	15,156		$	15,150
Buildings and improvements		47,084			47,026
Machinery and equipment		5,508			5,469
Office furniture and fixtures		8,097			8,000
Vehicles		661			677
Construction in progress		1,540			1,086
		78,046			77,408
Less accumulated depreciation and amortization		(26,709	)		(26,109	)
Property and equipment, net	$	51,337		$	51,299

At

March 31, 2021,

the Company did

not

have any significant fixed contractual commitments for construction projects.

Avalon reviews the carrying value of its long-lived assets whenever events or changes in circumstances indicate that its carrying amount

may

not

be recoverable. If indicators of impairment exist, Avalon would determine whether the estimated undiscounted sum of the future cash flows of such assets and their eventual disposition is less than its carrying amount. If less, an impairment loss would be recognized if, and to the extent that the carrying amount of such assets exceeds their respective fair value. Avalon would determine the fair value by using quoted market prices, if available, for such assets; or if quoted market prices are

not

available, Avalon would discount the expected estimated future cash flows. During the

first

three

months of

2021

and

2020,

no

triggering events were present.