Segment Reporting

6 Months Ended

May. 31, 2015

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, 2014 and 2015 (in thousands):

	Three Months Ended May 31, 2014
	Motorsports Event		All Other			Total
Revenues	$	176,728	$	14,248		$	190,976
Depreciation and amortization	21,310		1,478			22,788
Operating income (loss)	35,286		(547		)	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
	Three Months Ended May 31, 2015
	Motorsports Event		All Other			Total
Revenues	$	160,831	$	3,762		$	164,593
Depreciation and amortization	23,535		1,222			24,757
Operating income (loss)	19,098		119			19,217
Capital expenditures	32,140		370			32,510
Total assets	1,671,716		484,021			2,155,737
Equity investments	—		115,486			115,486
	Six Months Ended May 31, 2014
	Motorsports Event		All Other			Total
Revenues	$	304,573	$	18,531		$	323,104
Depreciation and amortization	42,625		2,936			45,561
Operating income (loss)	60,044		(2,966		)	57,078
Capital expenditures	69,501		5,207			74,708
	Six Months Ended May 31, 2015
	Motorsports Event		All Other			Total
Revenues	$	285,580	$	15,901		$	301,481
Depreciation and amortization	46,223		2,543			48,766
Operating income (loss)	43,463		(2,655		)	40,808
Capital expenditures	72,997		2,931			75,928

Certain prior year amounts in the Segment Reporting have been reclassified to conform to the current year presentation.

Intersegment revenues were approximately $0.7 million and $0.6 million for the three months endedMay 31, 2014 and 2015, respectively, and approximately $1.0 million and $0.9 million for the six months ended May 31, 2014 and 2015, respectively.

During the three and six months ended May 31, 2015, the Company recognized approximately $0.4 million and $0.7 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, 2014, the Company recognized approximately $0.3 million and $0.6 million, respectively, of similar costs.

During the three and six months ended May 31, 2015, the Company recognized approximately $2.1 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 other projects. 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.

During the three and six months ended May 31, 2015, the Company recognized approximately $4.7 million and $6.3 million, respectively, of losses primarily attributable to demolition costs in connection with DAYTONA Rising and other capital improvements. During the three and six months ended May 31, 2014, the Company recognized approximately $1.2 million and $3.4 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.