v3.26.1
Note 6 - Property and Equipment
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Property, Plant, and Equipment [Text Block]

Note 6. 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. Leasehold improvements are included in building improvements and amortized on a straight-line basis over the shorter of their estimated useful lives or term of the lease.

 

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.

 

Property and equipment at March 31, 2026 and December 31, 2025 consists of the following (in thousands):

 

   

March 31,

    

December 31,

  
   

2026

    

2025

  

Land and land improvements

   $ 17,174     $ 17,173  

Buildings and improvements

     55,200       55,094  

Machinery and equipment

     11,028       10,992  

Office furniture and fixtures

     11,896       11,854  

Vehicles

     1,142       1,130  

Construction in progress

     193       60  
      96,633       96,303  

Less accumulated depreciation and amortization

     (43,092 )     (42,321 )

Property and equipment, net

   $ 53,541     $ 53,982  

 

As of March 31, 2026, the Company entered into one significant contractual construction project commitment. The agreed upon commitment with the contractor is intended to renovate and expand the swimming pool area at Squaw Creek Country Club. The commitment is estimated to be approximately $1.8 million. As of March 31, 2026, amounts paid on the commitment were approximately $0.2 million.

 

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 2026 and 2025, no triggering events were present.