Quarterly report pursuant to Section 13 or 15(d)

REVENUES

v3.10.0.1
REVENUES
6 Months Ended
Jun. 30, 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 is due to the recognition of breakage on gift cards and gift certificates offered at the Company's Traditional Golf properties that are 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 the time of sale to customers at the Company’s Traditional Golf properties and Entertainment Golf venues, 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 Balance Sheet and Statement of Operations was as follows:

Consolidated Balance Sheet
 
 
June 30, 2018
 
 
As reported
 
Balances without Adoption of ASC 606
 
Effect of Change
Liabilities
 
 
 
 
 
 
Other current liabilities
 
$
15,145

 
$
19,954

 
$
(4,809
)
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
Accumulated Deficit
 
$
(3,084,934
)
 
$
(3,089,743
)
 
$
4,809


Consolidated Statement of Operations
 
 
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2018
 
 
As reported
 
Balances without Adoption of ASC 606
 
Effect of Change
 
As reported
 
Balances without Adoption of ASC 606
 
Effect of Change
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Golf operations
 
$
69,150

 
$
63,022

 
$
6,128

 
$
122,704

 
$
111,919

 
$
10,785

 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Costs
 
 
 
 
 
 
 
 
 
 
 
 
Operating expenses
 
$
67,042

 
$
60,914

 
$
6,128

 
$
124,421

 
$
113,636

 
$
10,785



The Company’s revenue is all generated within the Traditional and Entertainment Golf segments. The following table disaggregates revenue by category: public and private golf properties (owned and leased), managed golf properties and Entertainment golf venues.
 
 
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2018
 
 
Public golf properties
 
Private golf properties
 
Managed golf properties
 
Ent. golf venues
 
Total
 
Public golf properties
 
Private golf properties
 
Managed golf properties
 
Ent. golf venues
 
Total
Golf operations
 
34,609

 
26,891

 
6,795

 
855

 
69,150

 
56,979

 
52,840

 
12,030

 
855

 
122,704

Sales of food and beverages
 
12,307

 
8,595

 

 
952

 
21,854

 
19,514

 
14,494

 

 
952

 
34,960

Total revenues
 
$
46,916

 
$
35,486

 
$
6,795

 
$
1,807

 
$
91,004

 
$
76,493

 
$
67,334

 
$
12,030

 
$
1,807

 
$
157,664