Segment Reporting

6 Months Ended

May 31, 2014

Text Block [Abstract]

Segment Reporting

Segment Reporting

The general nature of the Company’s business is a motorsports themed amusement enterprise, furnishing amusement to the public in the form of motorsports themed entertainment. The Company’s motorsports event operations consist principally of racing events at its major motorsports entertainment facilities. The reporting units within the motorsports segment portfolio are reviewed together as the nature of the products and services, the production processes used, the type or class of customer using our products and services, and the methods used to distribute our products or provide their services are consistent in objectives and principles, and predominately uniform and centralized throughout the Company. The Company’s remaining business units, which are comprised of the radio network production and syndication of numerous racing events and programs, certain souvenir merchandising operations not associated with the promotion of motorsports events at the Company’s facilities, construction management services, leasing operations, and financing and licensing operations are included in the “All Other” segment. The Company evaluates financial performance of the business units on operating profit after allocation of corporate general and administrative (“G&A”) expenses. Corporate G&A expenses are allocated to business units based on each business unit’s net revenues to total net revenues.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Intersegment sales are accounted for at prices comparable to unaffiliated customers. The following tables provide segment reporting of the Company for the three and six months ended May 31, 2013 and 2014 (in thousands):

	Three Months Ended May 31, 2013
	Motorsports Event		All Other			Total
Revenues	$	172,287	$	6,844		$	179,131
Depreciation and amortization	18,292		1,366			19,658
Operating income (loss)	37,568		(488		)	37,080
Capital expenditures	14,394		1,132			15,526
Total assets	1,600,572		426,040			2,026,612
Equity investments	—		141,129			141,129
	Three Months Ended May 31, 2014
	Motorsports Event		All Other			Total
Revenues	$	184,113	$	6,863		$	190,976
Depreciation and amortization	21,361		1,427			22,788
Operating income (loss)	35,885		(1,146		)	34,739
Capital expenditures	39,140		4,321			43,461
Total assets	1,588,582		528,988			2,117,570
Equity investments	—		129,687			129,687
	Six Months Ended May 31, 2013
	Motorsports Event		All Other			Total
Revenues	$	296,287	$	11,801		$	308,088
Depreciation and amortization	36,740		2,760			39,500
Operating income (loss)	64,638		(2,411		)	62,227
Capital expenditures	20,133		1,499			21,632
	Six Months Ended May 31, 2014
	Motorsports Event		All Other			Total
Revenues	$	311,958	$	11,146		$	323,104
Depreciation and amortization	42,676		2,885			45,561
Operating income (loss)	60,643		(3,565		)	57,078
Capital expenditures	69,501		5,207			74,708

Intersegment revenues were approximately $0.8 million and $0.7 million for the three months ended May 31, 2013 and 2014, respectively, and approximately $1.2 million and $1.0 million for the six months ended May 31, 2013 and 2014, respectively.

During the three and six months ended May 31, 2014, the Company recognized approximately $0.3 million and $0.6 million, respectively in marketing and consulting costs that is included in general and administrative expense related to DAYTONA Rising. These costs were included in the Motorsports Event segment. During the three and six months ended May 31, 2013, the Company recognized approximately $0.3 million and $0.7 million, respectively of similar costs.

During the three and six months ended May 31, 2014, the Company recognized approximately $3.0 million and $6.0 million, respectively of accelerated depreciation that was recorded due to the shortening the service lives of certain assets associated with DAYTONA Rising and capacity management initiatives. There were no comparable amounts in the three and six months ended May 31, 2013.

During the three and six months ended May 31, 2014, the Company recognized approximately $1.2 million and $3.4 million, respectively of losses primarily attributable to demolition costs in connection with capacity management initiatives, DAYTONA Rising and other capital improvements. During the three and six months ended May 31, 2013, we recognized approximately $0.7 million and $2.3 million, respectively of losses associated with asset retirements primarily attributable to the removal of assets not fully depreciated in connection with capacity management initiatives, DAYTONA Rising and other capital improvements.