Variable Interest Entity
|6 Months Ended|
Jun. 30, 2017
|Variable Interest Entity [Abstract]|
|VARIABLE INTEREST ENTITY||
NOTE 13 – VARIABLE INTEREST ENTITY
The CFS Group owns 20% of the Tri-City Recycling Center, (“TCR”), which has been treated as a variable interest entity in these condensed consolidated financial statements. TCR leases a facility to the Company used in the operation of the Tri-City Regional Landfill in Petersburg. The sole source of TCR’s revenues is lease payments from the Company. While the creditors of TCR do not have general recourse to the assets of the Company, there is an obligation to perform by the Company under the leases which collateralize mortgage obligations. The terms of the lease are for a period of 20 years with a 10 year renewal option. The lease includes an annual escalation in rent payments of 1.5%. The equity, income and any contributions or distributions of equity are reported under non-controlling interest in the consolidated financial statements of the Company. Total assets, liabilities, income and expenses of TCR in the condensed consolidated financial statements at June 30, 2017 are $418,000, $1,315,000, $143,000 and $78,000, respectively.
At June 30, 2017, total liabilities include the mortgage obligations of TCR in the aggregate of approximately $1,315,000, collateralized by the net book value of the facilities under lease by the Company of approximately $418,000.
The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss.
Reference 1: http://www.xbrl.org/2003/role/presentationRef