Annual report pursuant to Section 13 and 15(d)

REVENUES

v3.19.1
REVENUES
12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
REVENUES
REVENUES

On January 1, 2018, the Company adopted the new accounting standard ASC 606, Revenue from Contracts with Customers, and all the related amendments (“new revenue standard”) for all contracts using the modified retrospective method. The Company recognized the cumulative effect of initially applying the new revenue standard as a decrease to the 2018 opening balance of accumulated deficit of $4.8 million. The adjustment was due to the recognition of breakage on gift cards and gift certificates offered at the Company's Traditional Golf properties that were not expected to be redeemed based on historical redemption rates. The recognition of breakage on gift cards and gift certificates on an ongoing basis is expected to have an immaterial impact to the Company’s net income (loss). Also in accordance with the new revenue standard, certain operating costs incurred at the Company’s managed Traditional Golf properties and the reimbursements of those operating costs will now be recognized in Operating expenses and Golf operations, respectively. The reimbursements do not include a profit margin and therefore this change will have no net impact to the Company’s operating income (loss).

The majority of the Company’s revenue continues to be recognized at a point in time which is at the time of sale to customers at the Company’s Entertainment Golf venues and Traditional Golf properties, including green fees, cart rentals, bay play, events and sales of food, beverages and merchandise.

Per the modified retrospective method, comparative information has not been restated to conform to these changes and continues to be reported under the accounting standards in effect for those periods. In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the Consolidated Statements of Operations was as follows:

Consolidated Balance Sheet

 
 
December 31, 2018
 
 
As reported
 
Balances under prior accounting
 
Effect of Change (A)
Liabilities
 
 
 
 
 
 
Other current liabilities
 
$
22,285

 
$
27,094

 
$
(4,809
)
Equity
 
 
 
 
 
 
Accumulated Deficit
 
$
(3,105,307
)
 
$
(3,110,116
)
 
$
4,809

(A)
Represents the cumulative effect adjustment to the 2018 opening balance.

Consolidated Statement of Operations

 
 
Year Ended December 31, 2018
 
 
As reported
 
Balances under prior accounting
 
Effect of Change
Revenues
 
 
 
 
 
 
Golf operations
 
$
244,646

 
$
222,581

 
$
22,065

Operating Costs
 
 
 
 
 
 
Operating expenses
 
$
251,794

 
$
229,729

 
$
22,065



The Company’s revenue is all generated within the Entertainment and Traditional Golf segments. The following table disaggregates revenue by category: Entertainment golf venues, public and private golf properties (owned and leased) and managed golf properties.
 
 
Year Ended December 31, 2018
 
 
Entertainment golf venues
 
Public golf properties
 
Private golf properties
 
Managed golf properties
 
Total
Golf operations
 
2,191

 
116,009

 
101,669

 
24,777

 
244,646

Sales of food and beverages
 
2,713

 
39,280

 
27,730

 

 
69,723

Total revenues
 
$
4,904

 
$
155,289

 
$
129,399

 
$
24,777

 
$
314,369