Note 14 - Business Segment Information

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

14.

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 the

three

months ended

March 31, 2021,

one

customer accounted for

20%

of the waste management services segment's net operating revenues to external customers and

15%

of the consolidated net operating revenues. For the

three

months ended

March 31, 2020,

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

2020

Annual Report to Shareholders. Avalon measures segment profit for internal reporting purposes as income (loss) before income 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,
	2021			2020
Net operating revenues from:
Waste management services:
External customer revenues	$	11,150		$	11,133
Intersegment revenues		-			-
Total waste management services		11,150			11,133
Golf and related operations:
External customer revenues		3,963			3,270
Intersegment revenues		8			28
Total golf and related operations		3,971			3,298
Segment operating revenues		15,121			14,431
Intersegment eliminations		(8	)		(28	)
Total net operating revenues	$	15,113		$	14,403
Income (loss) before income taxes:
Waste management services	$	1,143		$	1,048
Golf and related operations		200			(731	)
Segment income before income taxes		1,343			317
Corporate interest expense		(283	)		(297	)
Corporate gain on debt extinguishment		502			-
Corporate other income, net		1			2
General corporate expenses		(832	)		(808	)
Income (loss) before income taxes	$	731		$	(786	)
Gain on debt extinguishment:
Waste management services	$	-		$	-
Golf and related operations		585			-
Corporate		502			-
Total gain on debt extinguishment	$	1,087		$	-

	March 31,			December 31,
	2021			2020
Identifiable assets:
Waste management services	$	33,385		$	31,875
Golf and related operations		59,614			57,863
Corporate		58,473			59,425
Subtotal		151,472			149,163
Elimination of intersegment receivables		(71,696	)		(71,213	)
Total	$	79,776		$	77,950

In comparing the total assets at

March 31, 2021

with those at

December 31, 2020,

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

$1.5

million is primarily a result of an increase in accounts receivable and intersegment transactions, which are eliminated in consolidation. The increase in total assets of the golf and related operations segment of

$1.8

million was primarily due to an increase in accounts receivable and capital expenditures related to The Grand Resort and Avalon Field Club at New Castle partially offset by current year depreciation on property and equipment. The decrease in corporate total assets of approximately

$1.0

million is due to a decrease in operating cash and cash equivalents, restricted cash utilized for the expansion of The Grand Resort and Avalon Field Club at New Castle and intersegment transactions, which are eliminated in consolidation.